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
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.