During 2024 the European Central Bank will submit to one stress test on cyber resilience 109 banks subject to its direct supervision. The objective is not so much to evaluate the prevention capabilities, but to verify the response and recovery in case of cyber attack. The ECB itself communicated this with a note.
How the stress test will take place and who it will involve
The stress test scenario assumes that an attack succeeds in disrupting the business continuity of bankswhich will then test their response and recovery measures, including the activation of emergency procedures and emergency plans and the restoration of normal operations. Supervisors will then assess institutions’ ability to deal with such a scenario.
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As part of the exercise, 28 banks will be subjected to a more detailed checkfor the purposes of which they will present more information regarding the ways in which they will have faced the cyber attack. The sample includes different business models and geographical areasto provide a meaningful representation of the euro area banking system and ensure efficient coordination with other supervisory activities.
Exercise, predominantly type qualitativewill not lead to a capital effect via Pillar 2 guidance, which represents specific recommendations for banks regarding the level of capital to hold in addition to mandatory requirements. The information acquired will instead be used for the purposes of the broader supervisory assessment conducted in 2024. Managers will discuss the results and lessons learned from the trial with individual banks as part of the supervisory review and evaluation process (Supervisory Review and Evaluation Process, Srep) 2024, aimed at evaluating the specific risk profile of each bank. The main results of the trial will be reported in the summer of 2024
The supplier selection process for the digital euro begins
Meanwhile, “in the coming weeks the ECB will start the selection process of potential suppliers of components of thedigital euro and related services”. She writes it the member of the Executive Committee of the ECB, Piero Cipollonein a letter sent to Irene Tinagli, president of the Commission for Economic and Monetary Affairs of the European Parliamenton updating the work of the Group for the development of the digital euro regulation and on starting the selection procedure for potential digital euro suppliers.
“The goal of the selection process is establish framework agreements with the most suitable external suppliers to ensure that the Eurosystem is ready to initiate the development of a digital euro in the future, if justified,” Cipollone explained, adding that “the framework agreements resulting from this process will only cover some of the services envisaged for the digital euro. Other components, such as payment settlement, would be purchased internally within the Eurosystem. The outcome of the public procurement procedure will be published on the ECB website.”
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