The Financial Stability Board (FSB) discussion paper considers regulatory and supervisory issues relating to outsourcing and third-party relationships.
The EACB gladly contributes to this discussion, whose importance has evolved due to the expansion of interactions with third parties particularly in the area of technology in recent years and which gained even more relevance in the light of the ongoing COVID-19-pandemic.
Reliance on third parties for the banking sector clearly has both benefits and challenges, the latter related in particular with managing and mitigating risks related to outsourcing and third-party relationships. Part of the problem is also the diverse regulatory and legal requirements. In our position paper, among others, we stress the need to harmonize regulatory approaches and to take into account the unique organizational structure of cooperative banking groups when common standards are set.