(Bloomberg) -- The top US banking regulators on Tuesday released new guidance for how banks should manage risks from firms they work with in a bid to reduce dangers to the financial system.
The joint guidance from the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency is meant to streamline government guidance on mitigating risks for working with third-party firms. The issue has grown in importance as lenders have worked more with financial technology and crypto companies.
“The use of third parties, especially those using new technologies, may present elevated risks to banking organizations and their customers, including operational, compliance, and strategic risks,” the agencies said.
The regulators said banks should maintain a complete inventory of the relationships and periodically review them for risks.
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