The European Central Bank (ECB) plans to conduct a cyber resilience stress test on 109 banks in 2024. The goal of the test is to assess the ability of banks to respond and recover from a cyberattack, rather than their ability to prevent one. Banks will be tested on their response and recovery measures, including activating emergency procedures and contingency plans. Additionally, 28 banks will undergo an enhanced assessment and submit additional information on how they coped with the cyberattack. The findings and lessons learned will be discussed with each bank as part of the Supervisory Review and Evaluation Process. The main findings of the exercise will be communicated in the summer of 2024. This stress test aims to ensure the cyber resilience of the euro area banking system and promote efficient coordination with other supervisory activities.
Key points:
- The European Central Bank will conduct a cyber resilience stress test on 109 banks in 2024
- Banks will be tested on their ability to respond and recover from a cyberattack
- 28 banks will undergo an enhanced assessment and submit additional information on how they coped with the cyberattack
- The findings and lessons learned will be discussed with each bank as part of the Supervisory Review and Evaluation Process
- The main findings of the exercise will be communicated in the summer of 2024
The European Central Bank (ECB) has announced plans to stress test 109 banks in the euro area to assess their ability to recover from a cyberattack. This exercise will focus on the response and recovery measures that banks have in place and their ability to restore normal operations following a cyber incident. The stress test will simulate a scenario in which a cyberattack disrupts the bank’s daily business operations, and banks will be required to activate emergency procedures and contingency plans to restore normal operations. The exercise will also include an enhanced assessment for 28 banks, which will involve submitting additional information on how they coped with the cyberattack.
The ECB’s stress test is part of its ongoing efforts to promote cyber resilience in the banking system. Cyberattacks are an increasing threat to financial institutions, and it is important for banks to have robust measures in place to protect against and recover from these attacks. By conducting this stress test, the ECB aims to identify any weaknesses in banks’ cyber resilience strategies and provide guidance on how to improve their response and recovery capabilities.
One of the key goals of the stress test is to ensure efficient coordination with other supervisory activities. The sample of banks selected for the test covers different business models and geographies to provide a meaningful reflection of the euro area banking system. This will help supervisors gain insights into the cyber resilience of banks across the region and identify any common vulnerabilities or areas for improvement. The findings and lessons learned from the stress test will be discussed with each bank as part of the Supervisory Review and Evaluation Process, which assesses a bank’s individual risk profile.
It is important to note that the stress test will not have an immediate impact on capital requirements. The insights gained from the exercise will be used for the wider supervisory assessment in 2024 and will inform future supervisory activities. The main findings of the stress test will be communicated to the public in the summer of 2024, providing transparency and accountability for banks’ cyber resilience efforts.
Overall, the ECB’s stress test is a proactive measure to assess the cyber resilience of banks in the euro area and promote a stronger and more secure banking system. By identifying and addressing any vulnerabilities, the ECB aims to ensure that banks are prepared to withstand and recover from cyberattacks. This will ultimately help protect the stability and integrity of the financial system as a whole.
