Deposit Guarantee Scheme and Systemic third-party dependency: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add link.)
 
(Layout.)
 
Line 1: Line 1:
(DGS).
''Risk management - risk identification - supply chain - financial services - systemic risk.''


A scheme that guarantees certain bank depositors' funds - subject to specified limits - should the bank fail.
Systemic third-party dependency is dependency on services provided by a service provider where their disruption or failure has been identified by a relevant financial authority as having potential implications for financial stability.


''(Source - Financial Stability Board (FSB).)''


With effect from 2016, the guaranteed amount in the UK is limited to £75,000. (It was previously £85,000.)


The limits were established as the approximate domestic currency equivalent of EUR 100,000.
"If many firms rely on the same third party for material services, the failure or disruption of this ‘critical’ third party could have a systemic impact across the financial sector.  


The UK deposit guaranteee scheme is the Financial Services Compensation Scheme (FSCS), overseen by the Prudential Regulation Authority (PRA).
Moreover, firms’ dependency on a limited number of critical third parties for key services within the financial services sector has increased in recent years and continues to do so.
 
As of 2020, for example, over 65% of UK firms used the same four cloud providers for cloud infrastructure services."
 
''Critical Third Parties to the Finance Sector, Policy Statement, June 2022, HM Treasury.''




==See also==
==See also==
* [[BIP]]
* [[Cloud]]
* [[DGSD]]
* [[Cloud infrastructure]]
* [[Financial Services Compensation Scheme]]
* [[Critical service]]
* [[International Association of Deposit Insurers]]
* [[Critical third parties]]  (CTP)
* [[Prudential Regulation Authority]]
* [[Financial authority]]
* [[Retail]]
* [[Financial institution]]
* [[Stability]]
* [[Financial Market Infrastructure Entities]]
* [[Financial stability]]
* [[Financial Stability Board]]  (FSB)
* [[HM Treasury]]  (HMT)
* [[Infrastructure]]
* [[Material]]
* [[Outsourcing]]
* [[Risk]]
* [[Risk identification]]
* [[Risk management]]
* [[Service provider]]
* [[Systemic risk]]
* [[Third party]]
* [[Third-party risk]]
* [[Third-party risk management]]
* [[Third-party service provider]]
* [[Third-party service relationship]]
 
 
==Other resources==
* [https://www.fsb.org/2023/12/final-report-on-enhancing-third-party-risk-management-and-oversight-a-toolkit-for-financial-institutions-and-financial-authorities/  Enhancing Third-Party Risk Management and Oversight: A toolkit for financial institutions and financial authorities, Financial Stability Board, December 2023]
 
* [https://assets.publishing.service.gov.uk/media/629f6ce88fa8f5038dcd2904/2022-06-08_critical_third_parties_policy_statement.pdf Critical Third Parties to the Finance Sector, Policy Statement, June 2022, HM Treasury]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:Risk_frameworks]]
[[Category:The_business_context]]

Revision as of 11:05, 18 January 2024

Risk management - risk identification - supply chain - financial services - systemic risk.

Systemic third-party dependency is dependency on services provided by a service provider where their disruption or failure has been identified by a relevant financial authority as having potential implications for financial stability.

(Source - Financial Stability Board (FSB).)


"If many firms rely on the same third party for material services, the failure or disruption of this ‘critical’ third party could have a systemic impact across the financial sector.

Moreover, firms’ dependency on a limited number of critical third parties for key services within the financial services sector has increased in recent years and continues to do so.

As of 2020, for example, over 65% of UK firms used the same four cloud providers for cloud infrastructure services."

Critical Third Parties to the Finance Sector, Policy Statement, June 2022, HM Treasury.


See also


Other resources