NCUA official seal NCUA official seal. (Source: NCUA)

The NCUA’s Inspector General is investigating the risks third-party vendors pose to the credit union system, contending that the agency faces “unique challenges” because it is the only banking regulator without power to supervise the companies.

Credit unions regularly hire vendors and “these relationships pose various potential risks to credit unions, as they must relinquish a certain level of control over products and services to the third party vendor as an inherent part of the relationship,” the IG said, in its semi-annual report to Congress.

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David Baumann

 

Credit Union Times

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