The European Central Bank is reminding banks of their vulnerability to IT and cyber-risks during the current Coronavirus pandemic.
The ECB notes how the region's banks have become exceptionally reliant on IT systems owing to the health crisis, which has led to temporary branch closures and the introduction of remote working arrangements on an unprecedented scale.
"The more banks rely on IT systems, the more vulnerable they can become to IT and cyber risk," states the Central Bank. "Ensuring comprehensive IT and cyber security is therefore vital."
A Risk Map for 2020 drawn up the ECB identifies cybercrime and IT deficiencies as one of the top three risks currently faced by the euro area banking system.
In March, the ECB advised banks to proactively assess and test the capacity of their existing IT infrastructure, particularly in the light of a potential increase in cyberattacks and possible greater reliance on remote banking services. Banks were also encouraged to assess the risk of increased cyber security‑related fraud targeting them or their customers.
The ECB says its latest analysis of bank IT risk finds that the better-prepared institutions are those where board members have a higher level of IT expertise. The analysis also shows that many banks’ critical banking services still depend on end-of-life systems, and that the use of IT outsourcing is increasing, with some banks concentrating on only one provider - a clear red flag for supervisory authorities.