ECB Cyber Resilience Stress Test: Operational Framework Improvements Needed at European Banks

On 26 July 2024, the European Central Bank (ECB) concluded its cyber resilience stress test.

Key highlights:

-- The ECB conducted a cyber resilience stress test with 109 European banks to assess their response and recovery from a severe and plausible cybersecurity incident.
-- The ECB concluded that there is room for improvement in European banks' operational frameworks.
-- There is no direct capital impact via the Pillar 2 guidance, but results would be integrated into the Supervisory Review and Evaluation Process

"We view this type of exercise as providing key inputs to improve banks' operational frameworks in relation with cybersecurity, especially with the significant increase in cyberattacks since the onset of the Russia-Ukraine war", said Maria Jesus Parra Chiclano, Vice President of European Financial Institution Ratings at Morningstar DBRS.