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[$$] BoE pushes banks to improve service in IT failures

Caroline Binham in London

The Bank of England will demand new minimum standards of service that it expects financial companies to deliver in the wake of a cyber attack or major IT failure. The BoE’s Financial Policy Committee – whose job it is to spot and mitigate risks to the entire UK financial system – is developing a new framework, and regulators will publish a discussion paper as a first step to formulating new rules around resilience to so-called operational risk, a BoE senior banking supervisor said on Wednesday. “We have seen an increase in the number of operational incidents – be they caused by internal failures or from external attack,” said Lyndon Nelson, the deputy chief executive of the BoE’s Prudential Regulation Authority, which supervises the largest banks and insurers.