Regulators fear op risks in outsourcing and e-banking


BASLE, SWITZERLAND -- Some banks overestimate the cost savings from outsourcing operations and services, and give little thought to the disruption to their services that’s likely to arise in the event of problems with the service provider.

That’s the conclusion of a review of the development of electronic finance -- e-finance -- issued in November by the Bank for International Settlements (BIS), the so-called central bankers’ central bank.

Outsourcing posed operational and reputational risks for

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