Template-Type: ReDIF-Paper 1.0
Author-Name: Sebastian Doerr
Author-X-Name-First: Sebastian
Author-X-Name-Last: Doerr
Author-Name: Leonardo Gambacorta
Author-X-Name-First: Leonardo
Author-X-Name-Last: Gambacorta
Author-Name: Thomas Leach
Author-X-Name-First: Thomas
Author-X-Name-Last: Leach
Author-Name: Bertrand Legros
Author-X-Name-First: Bertrand
Author-X-Name-Last: Legros 
Author-Name: David Whyte
Author-X-Name-First: David
Author-X-Name-Last: Whyte
Title: Cyber risk in central banking
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, giving technical security control and resiliency priority. 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 emerging market economies provide a framework for the collection of information on cyber attacks on financial institutions, less than half of those in advanced economies do. Cooperation among public authorities, especially in the international context, could improve central banks' ability to respond to cyber attacks.
Length: 25 pages
Creation-Date: 2022-09
File-URL: https://www.bis.org/publ/work1039.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work1039.htm
File-Format: text/html
Number: 1039
Keywords: cyber risk, central banks, financial institutions, cloud services, cyber regulation
Classification-JEL: E5, E58, G20, G28
Handle: RePEc:bis:biswps:1039