Jul 9, 11:36 AM

Global Regulators Tighten Rules on Bank Outsourcing Amid Shadow Banking Risks, Says EBA Chairman

Global regulators are tightening rules on banks outsourcing services, with board directors required to take ultimate responsibility for managing risks associated with outages and disruptions. The Basel Committee has emphasized the need for documentation on how these risks are managed. Additionally, the European Banking Authority (EBA) chairman has highlighted the challenges regulators face in mapping risks from the non-bank financial sector, often referred to as shadow banking. The EBA chairman noted the presence of information 'black holes' in this sector, suggesting that mandatory disclosure might be necessary to address these gaps.

#Basel Committee #European Banking Authority #EBA

Written with ChatGPT (GPT-4o).