Bank of England (BoE) has reportedly decided to delay work on the first cyber stress test for banks to focus on Brexit preparations, due on 29 March next year.
According to Reuters, the bank officials agreed in a meeting to focus on Brexit. The test is delayed until the first half of next year.
What is a cyber stress test?
The Bank of England’s Financial Policy Committee (FPC) expected to carry out a test early next year. It will evaluate the resilience of banks against potential cyber attacks.
However, following the delay, the test will go ahead after Brexit.
The cyber stress test was part of the central bank’s efforts to ensure that all the banks are capable of preventing and also tackling possible cyber hacks.
Currently, FPC is assessing the impact that Brexit will have on the UK’s financial system. It is also under pressure from the lawmakers to keep the financial sector competitive, even in case of no deal Brexit.
The test found that the banking system is resilient enough to withstand simultaneous recessions in the UK and global economies. The result indicated that the banks will be able to bear the impact of a disorderly Brexit.
The test included all major British banks including HSBC, Barclays, Lloyds, RBS, Santander UK and Standard Chartered.