Pablo Hernández de Cos: Cyber risk and its implications for financial stability

Speech by Mr Pablo Hernández de Cos, Governor of the Bank of Spain, at the Punto de Encuentro Financiero FINANZA, organised by Elkargi, Bilbao, 12 April 2024.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Ladies and gentlemen, good morning. Let me begin by thanking Elkargi for organising this event and for offering me the opportunity to take part.

On this occasion I would like to share with you some reflections on cyber risk and its implications for financial stability. The relentless digitalisation of the economy and of society at large has made it a priority for us all, but especially for the financial sector and its supervisory and regulatory authorities.

The growing digitalisation of the banking business -

The financial sector is extensively digitalised. Banks depend on technology not only as a fundamental support for business processes, but also as a differential and competitive factor.

In recent years, digitalisation has accelerated, both to improve the efficiency of banks' internal processes and to offer their customers flexible, personalised and immediate services, accessible anywhere and via a range of devices.

The COVID-19 pandemic and the emergence of new competitors, such as bigtechs or fintechs, have reinforced these developments.

- has increased the exposure of financial institutions and their customers to cyber risk -