Cyber risk in central banking

Sebastian Doerr, Leonardo Gambacorta, Thomas Leach, Bertrand Legros and David Whyte

No 1039, BIS Working Papers from Bank for International Settlements

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.

Keywords: cyber risk; central banks; financial institutions; cloud services; cyber regulation (search for similar items in EconPapers)
JEL-codes: E5 E58 G20 G28 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2022-09
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mon and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Working Paper: Cyber risk in central banking (2022)
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