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Cybersecurity and Financial Stability

Banks have traditionally been concerned with financial risks such as credit losses, liquidity shortages, and market volatility. But as financial institutions become increasingly dependent on digital infrastructure, a different source of vulnerability is emerging: cybersecurity. A cyberattack may initially appear to be a technology problem.

Yet when banks rely on interconnected payment systems, cloud services, and third-party technology providers, a disruption affecting one institution can spread to others. What begins as an operational failure may ultimately undermine confidence in the financial system. This raises an important question: Are individual banks investing enough in cybersecurity to protect not only themselves but also the broader financial system?…