Cybersecurity and the outsourcing of IT services are among the greatest risks to the financial sector, warns a new report from German regulator BaFin.
The watchdog has named the seven risks it considers most capable of jeopardising Germany's financial stability. Of these, one is new for 2024 - market concentration in the outsourcing of IT service.
"In some sectors in Germany, a small number of specialised IT service providers serve a large proportion of banks and insurers," warns the report.
Among the other concerns highlighted is the risk of cyberattacks and of inadequate money laundering prevention.
Mark Branson, president, BaFin, says: "Institutions shouldn’t underestimate risk provisioning needs, and, more than ever, companies should be investing in their operational security and stability."
Read the report (German)