Euro Area: Publication of Financial Sector Assessment Program Documentation-Technical Note on Cyber Risk and Financial Stability-Selected Issues in Regulation and Supervision

International Monetary Fund

No 2025/213, IMF Staff Country Reports from International Monetary Fund

Abstract: This Technical Note on Cyber Risk and Financial Stability in Euro Area (EA) highlights that the reliance of the banking sector on, and the interconnectedness of, information and communication technology (ICT) systems make cyber risk one of the most significant operational risk categories, with potentially systemic implications. ICT/cyber risk has been increasing in recent years globally; however, the observed general risk level in the EA banking sector in 2024 remained relatively stable compared to 2023. The reviewed ICT/cyber risk supervisory and oversight practices of the authorities with regard to SIs and FMIs in scope are materially in line with applicable regulations and guidance. Coping with the changes brought by Digital Operational Resilience Act (DORA) is the most prominent operational challenge that the authorities are confronted with. The new ICT-related incident reporting regime under DORA is served by a largely decentralized infrastructure, the efficiency of which could be significantly improved. A number of weaknesses have a negative impact on cyber risk supervision and oversight.

Keywords: resilience oversight expectation; markets authority; chief information security officer; oversight practice; FMI oversight; staff team of the International Monetary Fund; Cyber risk; Financial Sector Assessment Program; PFM information systems; Payment systems; Operational risk; Global (search for similar items in EconPapers)
Pages: 24
Date: 2025-07-25
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