Outsourcing

Legal and regulatory framework:

Banking Law: Articles 21 and 66
Relevant thematic NBB circulars:
- Circular NBB_2021_28 of 16 November 2021 transposing Guidelines EBA/GL/2021/05 of 2 July 2021 on internal governance
- Circular NBB_2019_19 on the European Banking Authority (EBA) Guidelines on outsourcing arrangements of 25 February 2019 (EBA/GL/2019/02)
International reference documents:
- Guidelines EBA/GL/2021/05 of 2 July 2021 on internal governance => paragraphs 91 to 93

In accordance with Article 21 of the Banking Law, each institution must have appropriate structures for the organisation of the business to ensure effective and prudent management of the institution.

Article 66 of the Banking Law moreover specifies that in this context, each institution is required to take appropriate measures to, on the one hand, limit the operational risk associated with outsourcing and, on the other hand, to ensure that the adequacy of the institution’s internal control procedures is not materially impaired and that the supervisory authority is not prevented from monitoring the institution’s compliance with its legal and regulatory requirements.

The prudential expectations regarding outsourcing are specified in Circular NBB_2019_19.

Please refer to this circular for further information on these different topics.