The technology lab of FDIC (FDiTech) published a new guide to help financial technology, or fintech, companies and others partner with banks. The guide is designed to help third parties understand the environment in which banks operate and navigate the requirements unique to banking. FDiTech is working to develop additional tools and resources to increase opportunities for partnerships and eliminate unnecessary burdens and costs associated with third-party risk management. This guide is the first in a series of new resources from FDiTech.
The guide is an initial effort to address concerns of banks and technology companies across the country. Banks tailor their review of third parties to their specific needs and the type of arrangement they are entering into. However, the following general considerations might help third parties prepare for the due diligence process:
- Understand the framework of laws and regulations that apply to banks
- Maintain a well-managed and financially strong business
- Be prepared for the questions banks may ask and for potential remediation of concerns
- Demonstrate that the business has appropriate monitoring systems in place
Keywords: Americas, US, Banking, Fintech, FDiTech, Third-Party Arrangements, Third-Party Risk, FDIC
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.