The Fed is considering whether to examine compliance programs and governance at tech firms that serve the banking industry, a senior official said
The central bank is looking at whether to examine the compliance programs and governance structures at tech firms that provide data storage and services to the industry, Richard Ashton, deputy general counsel for litigation, enforcement and system matters, said Thursday at a conference in New York.
Financial regulators are allowed under the Bank Service Company Act to examine third-party vendors that provide core banking services, according to Mr. Ashton. As more banks outsource data management and other services to technology firms, regulators may be justified in strengthening their oversight, Mr. Ashton said.
Newsletter Sign-up “How far the authority goes to conduct examinations, I think, is something we are closely looking at,” Mr. Ashton said, speaking broadly about Fed enforcement priorities. “Is it something that we can look at the governance structure at these third-party providers? Can we look at their overall compliance management program?”
Mr. Ashton didn’t provide additional details about the central bank’s examination plans. His comments come four months after a hacker accessed personal information of 106 million credit-card customers that Capital One Financial Corp. had stored on Amazon.com Inc. ’s cloud service. Banks are ultimately responsible for managing the risks associated with vendor relationships, but in cases where several banks rely on the same third-party provider, regulators may have a bigger role to play, Mr. Ashton said.Copyright ©2019 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
The Federal Reserve is looking into developing a digital currency - Business InsiderIn September, Reps. French Hill (R-Ark.) and Bill Foster (D-Ill.) said the central bank should consider a cryptocurrency to remain competitive.
Baca lebih lajut »
Fed Minutes to Shed Light on Internal Debate Over RatesThe Federal Reserve is set to release the minutes of its Oct. 29-30 meeting, offering clues about its decision to cut interest rates and signal a wait-and-see policy stance.
Baca lebih lajut »
Retail earnings, manufacturing gauge, home sales: 3 things to watch for in the markets on ThursdayWe'll get earnings from Macy's, Gap and Nordstrom, the Philadelphia Federal Reserve manufacturing gauge and existing home sales on Thursday.
Baca lebih lajut »
Chairman of oil rig firm Seadrill steps down, remains committed investorSeadrill Chairman John Fredriksen, the oil rig firm's top shareholder, is s...
Baca lebih lajut »
Your Game Plan for Hosting a Small ThanksgivingA complete step-by-step guide to hosting our Thanksgiving dinner menu for 2–4 guests.
Baca lebih lajut »
Mark Zuckerberg's sharp criticism of China is reportedly not going down too well with Facebook's base of Chinese employeesMark Zuckerberg has upped his rhetoric against China recently.
Baca lebih lajut »