SBP governor highlights cyber-security issues

KARACHI: State Bank of Pakistan (SBP) Governor Dr Reza Baqir has highlighted the issues and challenges of cyber-security faced by the banks, a statement said.

He highlighted the issues in his keynote speech at the Islamic Financial Services Board (IFSB). Malaysia organised the 13th Public Lecture Series on the theme of “Sustainability and Cyber Resilience” on December 8, 2021 in Abu Dhabi, United Arab Emirates.

The public lecture was organised in collaboration with the central bank of the UAE. The lecture series is a flagship event of the IFSB where eminent scholars of the global Islamic financial services industry share their valuable insights on the pressing issues of the Islamic financial world.

The 13th public lecture was organised as a side event to the 39th IFSB Council meeting.

Dr Baqir delivered the keynote speech on “Cyber-security in the era of digitalisation: Regulatory perspective” in the event.

He highlighted significant issues and challenges surrounding cyber-security being faced by the banks and enlightened the audience on the policy measures and regulatory initiatives undertaken by the State Bank of Pakistan, in this regard.

He said digitalisation is one of the biggest disruptors of this millennium that is remodeling the real economy and the financial sector on a global scale.

Dr Baqir also highlighted numerous business opportunities emerging due to the recent trends in digitalisation, which would spur growth across the economies.

He emphasised that interconnection and complexity of the financial system and the massive adoption of technology has created vulnerabilities, which necessitates the policymakers and regulators to stay vigilant and develop befitting policy measures to address the risks emerging through technological disruptions.

Sharing his thoughts on the policy response against the cyber-security risks, the SBP governor stressed upon developing robust cyber-security protocols and regulations to improve the overall governance regime in the financial institutions by making cyber-security a boardroom agenda of financial institutions.

He also underscored the need to strengthen operational cyber resilience through promoting a culture of collaboration and coordination among the global financial industry to respond to cyber threats in real-time.

In his concluding remarks, Dr Baqir envisaged that the central banks may develop and promote centres for regional cooperation and collaboration on cyber-security.

Earlier, Khaled Mohamed Balama, governor of the Central Bank of UAE, welcomed the dignitaries and highlighted on the significance of the cyber-security, amid technological innovations and increased focus of financial sector on digitalisation, particularly after the Covid-19 pandemic.

Other dignitaries, including Huda Al Lawati, founder and chief executive officer, Aliph Capital, delivered her lecture on Islamic finance and sustainability, while David Staples, managing director of EMEA Corporate Finance Group, the UAE, delivered the lecture on the cyber-security.

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