The Financial Stability Oversight Council on Friday again called on Congress to give the NCUA supervisory powers over credit unions’ third-party service providers.
In adopting its annual report, the council said that such providers pose a possible risk to the financial system.
“The Council has identified the financial sector’s concentrated dependency on a limited number of service providers, such as cloud service providers, for critical information technology services as a potential risk to financial stability,” FSOC stated.
NCUA Chairman’s Stance
The council consists of financial regulators, including NCUA Chairman Todd Harper, who endorsed the annual report during Friday’s meeting.
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