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Bank Service Company Examination Coordination Act (BSCA)
Banks have increasingly outsourced certain business functions – hardware management, software development, cybersecurity, payments processing, and even tellers – to 3rd-party providers. The Bank Service Company Act authorizes federal regulators to examine TSPs to assess the potential risks they pose to individual client banks and the broader banking system. The Bank Service Company Examination Coordination (BSCA) Act would amend the BSCA to permit federal banking agencies and state banking agencies to coordinate examinations of TSPs and share results of examinations.
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