To all friends and partners, please be advised of the revised outsourcing framework for banks, approved by the Monetary Board in its Resolution No. 1179 last July 19. Included in the amendments are Section X162 and other relevant provisions of the Manual of Regulations for Banks.
Based on the above – mentioned resolution, some of the changes are on the following:
a. Renumbering of subsection x162.1 to x162.2
b. Transfer of subsection X162.2 on Outsourcing of Information Technology Systems to the Appendix of Section X162
c. The inclusion of Outsourcing definition on the new subsection X162.3, which now is now read as “Outsourcing shall refer to any contractual arrangement between a bank and qualified service provider for the latter to perform designated activities on a continuing basis on behalf of the bank.”
d. Emphasis on the responsibility of the bank to manage the operational risks that arise from outsourcing.
e. Consolidation of Subsections x162.11 and x162.12 and renumbered as Subsection X162.7
For more details, kindly download the circular by clicking the attached link: c765
For your information and guidance.