Cyber Incident Could Trigger EU Liquidity Crisis
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Central banks need to “reflect on the challenges to their traditional tools and emergency plans”
Europe’s systemic risk watchdog has warned that a single cyber incident could escalate from operational disruption into a major liquidity crisis across Europe.
The European Systemic Risk Board (ESRB) oversees banks, insurers, asset managers, financial market infrastructures and other financial institutions.
A cyber incident could “create disruption on such a scale that it has the potential to have serious negative consequences for the internal market and the real economy,” the ESRB warned, in a report that gamed both malicious and accidental incidents.