Connect with us

Popular World News

Bank of England sees potential risks from cloud data providers By Reuters

Macron says EU-Mercosur trade deal meets French demands By Euronews

ECONOMIC NEWS

Bank of England sees potential risks from cloud data providers By Reuters

© Reuters. FILE PHOTO: Bank of England Deputy Governor for Markets and Banking, Dave Ramsden attends a Bank of England news conference, in the City of London

LONDON (Reuters) – The Bank of England might strengthen its controls on cloud data providers and other technology firms to counter possible risks to the stability of the financial system from the rise of fintech, Deputy Governor Dave Ramsden said. The Bank of England (BoE) has expressed concerns before about the reliance by financial firms, especially fintech startups, on third-party technology companies for key parts of their operations, and Ramsden said this scrutiny would intensify. “We plan to analyse further whether we need even stronger tools to manage the risk that critical third parties, including potentially cloud and other major tech providers, may pose to the Bank’s … objectives,” Ramsden told the Innovate Finance conference on Wednesday. Regulators globally have been tightening scrutiny of outsourced functions as they worry that core services financial firms provide to customers are vulnerable to outages at third parties. Britain’s government is keen to promote fintech as an area of growth and hopes that nimbler regulation will enable it to steal a march over the European Union, where British financial firms now have reduced access due to Brexit. The BoE has said it will not water down regulatory standards, but does see scope for more streamlined regulation of smaller banks and in some areas of insurance. On Monday, finance minister Rishi Sunak asked the BoE to work with the finance ministry on whether the central bank should set up a digital version of sterling to compete with cryptocurrencies, which he dubbed ‘Britcoin’. The government is also consulting over proposals to relax stock market listing rules due to a concern that Britain is less attractive than the United States as a listing venue, especially for tech companies whose founders want to keep an sizeable role. Ramsden said the BoE had taken a step to make life easier for smaller financial companies on Monday by giving firms more direct ways to access its high-value payments system, which is dominated by major banks and processing companies.
Other steps included work standardising the identification of businesses involved in financial transactions, and looking at whether artificial intelligence could ease the burden of regulatory compliance.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

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

More in ECONOMIC NEWS

To Top
error: Content is protected !!
Top