(Reuters) – Cloud computing providers in the financial sector may be "secret" and regulators must act to avoid banks' dependence on a handful of external companies becoming a threat to financial stability, the Bank of England said on Tuesday  Banks and other financial firms outsource key services to cloud computing companies such as Amazon.com Inc., Microsoft Corp. and Google LLC to improve efficiency and reduce costs, with the trend accelerating last year as the COVID-19 pandemic. developed.
BoE said that cloud computing can sometimes be more reliable than banks that host all of their servers themselves. But large suppliers can dictate terms – as well as prices ̵
"The concentrated power of conditions can manifest itself in the form of secrecy, opacity and not provide customers with the information they need to monitor the risk in the service," BoE Governor Andrew Bailey said at a news conference. what happens."
Mr Bailey did not mention specific companies that he was concerned about.
Earlier, the BoE's Fiscal Policy Committee said that further policy measures were needed to mitigate the risks to financial stability in cloud services.
resilience and testing of these standards of resilience, frankly we have to roll back some of it, the secret that comes with it. It does not match our goals, "said Bailey. not revealing too much publicly about their business, whether it opened the door to cyberattacks, but that companies needed to provide more information to regulators and customers.
"We need to find a balance here," Bailey said.
The BoE said that it welcomed the commitment of the Ministry of Finance and the Financial Conduct Authority on how to manage risks from cloud computing, but that a broader approach may be needed, including other regulators and foreign partners. Catalog