4.3.1. Overview

This part of the toolkit focuses on cases where financial authorities identify systemic third-party dependencies and, in some jurisdictions, financial sector critical service providers.

Not all critical services and service providers identified by individual financial institutions will be deemed by financial authorities to give rise to systemic third-party dependencies. However, individual financial institutions' assessment of critical services can provide a useful starting point for financial authorities. In principle, what renders a third-party dependency systemic is a financial authority's assessment of the potential impact on financial stability from disruption to the relevant service(s) or service provider.