Big Tech cloud services could face resilience test

Amazon, Google and other tech companies providing cloud computing to banks in Britain. A senior Bank of England official said that, this may have to comply with minimum resilience standards and testing. The BoE, along with regulators in Europe and the United States, is worried about the reliance of banks of Big Tech firms for cloud computing. This is in increasingly critical banking services.

Victoria Saporta, BoE executive director for prudential supervision said that this is a big topic both within the UK and internationally. In an event held by the Institute of International Finance, a global banking industry body this had been stated. She also stated that a global approach would be best. And that impact is an outage, as one of them could have been on financial stability.

Saporta also said that their current thinking is that the most effective approach to managing these risks from critical third-party services providers is through a combination of minimum resilience standards aimed directly at critical third parties, that is coupled with resilience testing of these critical third parties.