The bank requires risk reduction and the “confidentiality” of cloud computing.

The bank requires risk reduction and the “confidentiality” of cloud computing.

Cloud computing providers in the financial sector may be secretive, and regulators must take action to prevent a small number of external companies from relying on banks to threaten financial stability. Banks Banks and other financial companies are outsourcing key services to cloud computing companies such as Amazon, Microsoft, and Google to improve efficiency and reduce costs. This trend has intensified in the past year after the COVID19 pandemic.

Sometimes it may be more reliable than the bank hosting all of its servers, but large providers may impose conditions and prices on major financial companies.

This power concentrated in the clause can manifest itself in the form of confidentiality, opacity and failure to provide customers with the information needed to track service risks,” said Andrew Bailey, Governor of the Bank of England, at a press conference.

Bailey did not mention. To the specific subtitles that worries her. Previously, the Bank of England Fiscal Policy Committee had stated that additional policy measures were needed to reduce the financial stability risks associated with cloud computing.

Resilience, frankly, we must reverse something, which is accompanied by mysterious. This is not in line with our goals,” Bailey said. Bailey said that the Bank of England understands the desire of cloud service providers not to disclose their business too publicly while opening the door to cyber attacks, but the company needs to provide more to regulators Information.

“We have to find a balance here,” Bailey said. The Bank of England welcomes the commitment of the Ministry of Finance and the Financial Conduct Authority to address the risks associated with cloud computing, but a broader approach may be required, including other regulators abroad.