ICBA commended the federal banking regulators for issuing a joint statement to provide clarity on their supervision of core service providers.
Details: The joint statement from the FDIC, OCC, and Federal Reserve addresses:
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Select aspects of how community banks engage with core providers, noting that a significant percentage of the core provider market is represented by a few large providers.
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How the agencies will consider these factors when determining the level of supervisory oversight of core provider services.
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Their supervisory and enforcement authorities when a core provider engages or causes a community bank to engage in unsafe or unsound practices or violations of law or regulation.
ICBA View: In a national news release, ICBA President and CEO Rebeca Romero Rainey said the statement’s emphasis on holding cores accountable for delivering quality services is critical to community bank third-party relationships.
Recent Advocacy: After the OCC last year issued a request for information to better understand the challenges community banks face with core providers, ICBA shared recommendations designed to reduce duplicative supervisory burden, improve access to meaningful information, and foster a more competitive and interoperable technology marketplace.
