The Bank of England has recently announced that the financial sector’s increasing reliance on cloud data providers could pose a risk to financial stability.
Indeed, the Bank is worried that Britain’s banks that are moving their administration and accounts online into the cloud will threaten financial stability and that their reliance on cloud service providers will impact the resilience of their services.
It was stated that prudential regulation is no longer happening around the periphery of banks’ systems as everything that is integral to run the banks are now into the cloud. This could affect the safety and soundness of banks around the UK.
