Bank of England: Big Tech cloud services could face resilience test

Cloud IaaS

Amazon, Google and other tech companies providing cloud computing to banks in Britain may have to comply with minimum resilience standards and testing, a senior Bank of England official has said.

The Bank of England, along with regulators in Europe and the US, is worried about the reliance of banks on a handful of Big Tech businesses for cloud computing in increasingly critical banking services, and the impact an outage at one of them could have on financial stability.

“This is a big topic both within the UK and internationally,” Victoria Saporta, BoE executive director for prudential supervision, told an event held by the Institute of International Finance, a global banking industry body.

A global approach would be best, she said.

“Our current thinking is that the most effective … approach to managing these risks from critical third party services providers is through a combination of minimum resilience standards aimed directly at critical third parties … coupled with resilience testing of these critical third parties,” Saporta said.

The team at Platform Executive hope you have enjoyed the ‘Bank of England: Big Tech cloud services could face resilience test‘ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Huw Jones. Editing by Edmund Blair.

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