MDPS Program

The Agencies are responsible for the administration, coordination, oversight, and implementation of the supervisory program for the largest, systemically important TSPs: the MDPS program. The program represents a cooperative arrangement among the Agencies for the achievement of shared and consistent supervisory goals and objectives.

As a general rule, a TSP is considered for the MDPS program when the TSP processes:

  • mission-critical applications An application or system is mission-critical if it is vital to the successful continuance of a core business activity. An application also may be mission-critical if it interfaces with a designated mission-critical system. Products of software vendors also may be mission-critical. for a large number of financial institutions that are regulated by more than one Agency, thereby posing a high degree of systemic risk; or
  • from a number of data centers located in different geographic regions.
The companies in the MDPS program can pose a significant risk to the banking system if one or more have operational or financial problems or fail. Because these companies provide services to banks, savings associations, and credit unions, the supervisory program allows for effective use of Agencies' resources, reduced burden to the MDPS, shared knowledge of the company's operations, development of a joint supervisory strategy, and generation of a single Report of Examination (ROE) for the company and its client-regulated financial institutions.

 

Previous Section
Supervisory Programs
Next Section
Regional TSP Program