BOE Warns on Risks of Banking’s Reliance on Cloud Computing
- Tech giants are taking on more critical bank IT systems
- Central bank says it needs powers to oversee the risks
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The Bank of England wants additional powers to police the finance industry’s switch to cloud computing, saying it’s cloaking systems in secrecy and concentrating sensitive data with a handful of technology giants like Amazon.com Inc. and Microsoft Corp.
The central bank said it needs “additional policy measures” to make sure it can assess the industry’s IT infrastructure even when it’s run by third parties. “Frankly, we’ll have to roll some of that back, that secrecy that goes with it. It’s not consistent with our objectives,” Governor Andrew Bailey told reporters Tuesday.