- Title: Regulators push banks to adopt higher cyber security standards
- Date: 19th October 2016
- Summary: NEW YORK, NEW YORK, UNITED STATES (FILE) (REUTERS) VARIOUS OF WELLS FARGO BANK BRANCH
- Embargoed: 3rd November 2016 18:01
- Keywords: bank regulation security cyber consumers online hacking hackers financial institutions business internet Federal Reserve Office of the Comptroller of the Currency Federal Deposit Insurance Corp
- Location: NEW YORK, NEW YORK, AND PHOENIX, ARIZONA, UNITED STATES
- City: NEW YORK, NEW YORK, AND PHOENIX, ARIZONA, UNITED STATES
- Country: USA
- Topics: Economic Events
- Reuters ID: LVA00354O95L9
- Aspect Ratio: 16:9
- Story Text: U.S. bank regulators on Wednesday (October 19) outlined cyber security standards meant to protect financial markets and consumers from online attacks against the nation's leading financial firms. Leading banks will be expected to use the most sophisticated anti-hacking tools on the market and to be able to recover from any attack within two hours, said officials briefing reporters on the plan.
Erik Knight, president of cyber security firm Simplewan, says "This new regulation, these items that are coming out, are a must. We're actually very behind the ball, and we need to be moving on these things. It's good to see some movement. But, I think, we need to go further and faster."
The rules, which will be finalized after industry input, are meant to raise cyber security to a top priority for corporate executives and boards, according to the banking agencies. Banks with assets of $50 billion or more must satisfy the new rules that will be finalized in the months ahead, according to a statement by the Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp.
"The last I heard," says Knight, "They're still actually looking for good recommendations to add to this policy. But it's good to see it moving. Probably should have come sooner."
Roughly 40 banks and a variety of non-bank financial companies would have to comply with the final rules. "Covered entities would be required to be capable of operating critical business functions in the face of cyber-attacks," the regulators said in a statement.
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