Federal Bank Regulators Found Banks Not Paying Attention to Foreign Outsourcing Agreements
July 7, 2006
It may make good business sense for mortgage banks to outsource technology and data processing functions to foreign third-party providers, but the Federal Deposit Insurance Corp. is warning that institutions must consider and mitigate the risks that doing business overseas creates. In new guidance, the FDIC writes, “financial institutions cannot accept the benefits [of foreign outsourcing] while ignoring the potential risks.” And there is a whole list of risks that banks ought to be concerned…