FSOC: NCUA’s lack of third-party oversight power poses risk to system

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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