Article highlights how increased regulations affect bank vendors
Cleveland, Ohio (June 10, 2014) – Bank vendors must be proactive in their planning in order to remain viable in the face of increased regulatory guidance as laid out by the Office of the Comptroller of the Currency on October 30, 2013. That is the assessment of Richik Sarkar, a member in the Litigation Department at McDonald Hopkins LLC, in a recent Bloomberg BNA Banking Report article, “Increased Regulations Don’t Just Burden Banks; Vendors Must Also Manage Risk,” which outlines key aspects of the third-party risk management edicts to banks and offers corresponding strategies to vendors.
“To stay viable within the industry, bank vendors must analyze the guidance provided to banks and proactively anticipate, identify and address their bank clients’ needs,” writes Sarkar. “[This will] ensure that the bank and vendor have clear expectations with respect to managing operational, regulatory, and reputational risk.”
The article continues by outlining the regulatory guidance provided to banks while presenting a corresponding course of action for vendors. By knowing the specific areas of focus for banks, their vendors should consider how such focus will affect their client relationships.
It is believed the increased regulation could lead to a shrinking of the pool of qualified vendor partners, dampen innovation and drive up costs. As a result, vendors must be proactive in their planning by understanding their clients’ needs, regulatory environment, and expectations in order to properly manage risks.
About McDonald Hopkins
McDonald Hopkins has offices in Chicago, Cleveland, Columbus, Detroit, Miami, and West Palm Beach, as well as a subsidiary, McDonald Hopkins Government Strategies LLC, which is based in Washington, D.C. and led by former Congressman Steven LaTourette. McDonald Hopkins Government Strategies is not a law firm and does not provide legal services.
For more information about McDonald Hopkins, visit mcdonaldhopkins.com.