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Cyber risk in central banking

Author

Listed:
  • Doerr, Sebastian
  • Gambacorta, Leonardo
  • Leach, Thomas
  • Legros, Bertrand
  • Whyte, David

Abstract

The rising number of cyber attacks in the financial sector poses a threat to financial stability and makes cyber risk a key concern for policy makers. This paper presents the results of a survey among members of the Global Cyber Resilience Group on cyber risk and its challenges for central banks. The survey reveals that central banks have notably increased their cyber security-related investments since 2020, with a priority on technical security control and resiliency. Central banks see phishing and social engineering as the most common methods of attack, and the potential losses from a systemically relevant cyber attack are deemed to be large, especially if the target is a big tech providing critical cloud infrastructures. Generally, respondents judge the preparedness of the financial sector for cyber attacks to be inadequate. While central banks in most EMEs provide a framework for the collection of information on cyber attacks on financial institutions, less than half of those in AEs do. Cooperation among public authorities, especially in the international context, could improve the ability of central banks to respond to cyber attacks

Suggested Citation

  • Doerr, Sebastian & Gambacorta, Leonardo & Leach, Thomas & Legros, Bertrand & Whyte, David, 2022. "Cyber risk in central banking," CEPR Discussion Papers 17660, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17660
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    References listed on IDEAS

    as
    1. Iñaki Aldasoro & Leonardo Gambacorta & Paolo Giudici & Thomas Leach, 2023. "Operational and Cyber Risks in the Financial Sector," International Journal of Central Banking, International Journal of Central Banking, vol. 19(5), pages 340-402, December.
    2. Aldasoro, Iñaki & Gambacorta, Leonardo & Giudici, Paolo & Leach, Thomas, 2022. "The drivers of cyber risk," Journal of Financial Stability, Elsevier, vol. 60(C).
    3. Nikil Chande & Dennis Yanchus, 2019. "The Cyber Incident Landscape," Staff Analytical Notes 2019-32, Bank of Canada.
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    Cited by:

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    2. Hałaj, Grzegorz & Martinez-Jaramillo, Serafin & Battiston, Stefano, 2024. "Financial stability through the lens of complex systems," Journal of Financial Stability, Elsevier, vol. 71(C).
    3. Stavros Pantos, 2023. "Designing Stress Tests for UK Fast-Growing Firms and Fintech," Risks, MDPI, vol. 11(2), pages 1-22, January.
    4. Iñaki Aldasoro & Sebastian Doerr & Leonardo Gambacorta & Sukhvir Notra & Tommaso Oliviero & David Whyte, 2024. "Generative artificial intelligence and cyber security in central banking," BIS Papers, Bank for International Settlements, number 145.

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    More about this item

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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