A bank's use of third parties does not diminish its responsibility to oversee those activities in a safe and sound manner and in compliance with applicable laws and regulations, including consumer laws. To assist banks in their oversight of third parties in implementing risk management programs, in 2021 the Federal Reserve began providing state member banks with reports relevant to their third-party partners.
These reports contain information that may provide helpful insight in assessing the performance of bank service providers, depending on the services used and the risk the services pose.