Fed, FDIC, OCC Clarify Oversight of Bank Core Providers

The Federal Reserve, FDIC, and OCC have clarified their oversight of bank core providers. This clarification aims to provide greater transparency and clarity for banks in their relationships with these third-party vendors. The move is seen as a positive step towards regulating the fintech industry.

According to the Federal Reserve, this guidance is intended to help banks manage risks associated with bank core providers. It will also ensure that banks have adequate controls in place when using these providers' services. 'This guidance clarifies that banks are responsible for managing their relationships with third-party vendors and ensuring that they meet the bank's risk management requirements,' said a spokesperson.

The clarification comes as part of a broader effort to regulate the fintech industry. The regulatory bodies have been working together to develop guidelines for banks and other financial institutions when dealing with third-party vendors. 'We are committed to providing clear guidance on these matters so that banks can better navigate their relationships with bank core providers,' said another spokesperson.