The Basel Committee has published a newsletter encouraging banks to adopt more resilient measures relating to cyber security. This was triggered in part by the increase in cyber threats since the beginning of the COVID-19 pandemic.
The publication stressed the importance of banking authorities encouraging institutions to improve their methods of managing cyber risks so that they can be effectively mitigated. In particular, the Committee highlighted the range of industry standard tools, effective practices and frameworks that are available to banks, often free of charge. It also noted that it will continue to monitor developments in banks’ cyber risk management.
The Committee also evaluated its current framework on climate related financial risks. It will continue its relationship with the International Financial Reporting Standards (IFRS) Foundation for guidance on disclosure initiatives pertaining to these risks.
Finally, the Committee discussed banks’ strategic reasons for using financial technology. The focus of this analysis was on digitisation and disintermediation, particularly relating to retail banks. It plans to continue its consideration of the supervisory challenges associated with this sector.