Britain's major banks must arm themselves against the mounting threat of cyber attacks, Bank of England policymakers have warned.
Minutes of last month’s meeting by the Financial Policy Committee (FPC) revealed concerns that the threat of cyber attacks “had many dimensions and was growing”.
The FPC, which is charged with safeguarding financial stability, cautioned there were a number of “potential vulnerabilities” in the banking system and said it wants banks and other institutions - including the Bank of England - to draw up plans for protection as a priority.
The UK’s banking sector is particularly at risk due to old and complex IT systems, as well as a high degree of interconnectedness and its reliance on centralised infrastructure, such as payment systems and clearing houses.
Treasury officials are already working on plans to assess, test and improve the system’s resilience to cyber attacks.
But the FPC, which is chaired by Bank governor Mark Carney, said there now needs to be a “concrete plan” in place by the end of the first quarter of 2014, with a progress report before the end of this year.