The ECB Banking Supervision wants to look in particular at the risk of hacker attacks in the current year. Digitization is essential for banks to remain competitive, ECB President Christine Lagarde explained on Thursday in the 2024 annual report of bank surveillance.
“But this should go hand in hand with solid risk management, that subjects such as the excessive dependence on IT service providers and tackling the persistent threat of cyber attacks,” she wrote in the report.
The European Central Bank (ECB) will intensify its supervisory work in this area in the current year. Since the fall 2014, the ECB has been responsible for supervision of the large banks in the euro area.
Risks for banks are increasing
The resistance of the banks has become all the more important because the environment in which they work, ECB Chief Bank Supervisor Claudia Buch explained. Economic and geopolitical risks have increased. Climate and nature-related risks should also be taken into account.
Digitization in the financial sector influences competition. “Against this background, banks must adjust their frameworks for risk management and ensure that they are prepared for negative scenarios,” said the bank inspector.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
