Banks in EU face tougher rules on using cloud computing giants




  • In US
  • 2022-11-28 14:52:47Z
  • By Reuters
 

By Huw Jones

LONDON (Reuters) - Financial firms in the European Union will have to show how quickly they could recover from a cyber attack as they rely more for key services on 'cloud computing' giants such as Amazon, Microsoft, Google and IBM, the EU said on Monday.

Regulators worry about the speed and scale at which banks, insurers and investment firms are moving critical functions and market operations onto a handful of cloud platforms.

A glitch at one cloud company could potentially bring down services across many financial firms, regulators have said.

The EU Council, which represents the 27 member states, said it has completed the bloc's final approval stage for the new Digital Operational Resilience Act, known as DORA.

Banks and other financial firms already have plans for IT security but more was needed so they stay resilient through a severe disruption, said Zbynek Stanjura, finance minister for the Czech Republic, which holds the EU presidency.

"Thanks to the harmonised legal requirements which we adopted today, our financial sector will be better able to continue to function at all times," Stanjura said.

The requirements will apply to financial firms and "critical" third parties supplying cloud based services.

"If a large-scale attack on the European financial sector is launched, we will be prepared for it," Stanjura said.

The bloc's securities, insurance and banking watchdogs will write technical rules to implement the new law.

The European Parliament, which had joint say, has already given the green light and the law will come into force around the end of 2024.

Britain, no longer in the EU, said in June its regulators will be given powers to designate which outsourced services can come under direct supervision of the Bank of England and Financial Conduct Authority.

(Reporting by Huw Jones; Editing by Alexander Smith)

COMMENTS

More Related News

The EU just approved insects for human consumption with plenty of
The EU just approved insects for human consumption with plenty of 'environmental benefits' - are mealworms the low-cost, sustainable answer to soaring meat prices?

Cricket casserole, anyone?

ICE to open London gas hub, creating route around EU price cap
ICE to open London gas hub, creating route around EU price cap

The Intercontinental Exchange plans to launch a "parallel market" in London for Title Transfer Facility gas trading next month, it said on Friday, providing ...

Yellen to meet with donors, private sector on South Africa
Yellen to meet with donors, private sector on South Africa's energy transition

U.S. Treasury Secretary Janet Yellen met with local officials in South Africa's coal mining region of Mpumalanga on Friday, pledging America's firm support...

Sanofi
Sanofi's and Regeneron's Dupixent wins new stage of EU regulatory approval
  • US
  • 2023-01-27 06:37:50Z

Healthcare companies Sanofi and Regeneron said on Friday the European Union's medicines regulator had given a new stage of approval for their Dupixent...

Ease capital rules on EU banks to boost lending, banking industry says
Ease capital rules on EU banks to boost lending, banking industry says

Banks in the European Union could increase lending by almost a third if regulators applied capital requirements in the same way as their U.S. counterparts, a...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: US