Regulators raise the bar on outsourcing relationships

Description

Abstract: In recent years banking regulators have raised their expectations about bank oversight of outside service providers. This article details how, if your bank outsources key functions to third parties, it’s a good idea to review your existing relationships — as well as your policies, procedures and controls for managing those relationships — to ensure that they meet regulators’ expectations. A sidebar describes instances over the last two years when federal banking regulators cracked down on financial institutions that failed to adequately oversee third-party service providers.