DNB warns of more cyber threats due to geopolitical tensions

The regulator stresses that international cooperation and robust digital resilience are crucial to ensuring financial stability. With increasing tensions between major powers such as Russia, China and the United States, banks are facing more digital threats.

Cyber attacks, whether politically motivated or not, not only affect individual banks, but can also lead to a crisis of confidence in the financial system as a whole, says DNB Executive Board member Steven Maijoor.

Dutch banks, which are at the forefront of digitalization in Europe, are especially vulnerable in this regard because of their extensive network of suppliers and digital hubs.

More robust security with European help

DNB is calling on banks to strengthen their cyber security and risk management. This is not entirely out of the blue, as the new European Digital Operational Resilience Act, which will take effect next year, sets stricter requirements for banks' digital resilience.

According to Maijoor, this law provides more control over critical suppliers and allows the industry to collectively become more resilient to attacks.

Uncertainty due to new U.S. policy

Economic shocks are also looming. Donald Trump taking office as president could start to lead to less global trade and more protectionism, according to DNB. His plan to relax rules for the U.S. banking sector may jeopardize international financial stability.

DNB therefore believes it is essential that the United States adhere to international agreements such as the Basel Accord to prevent a crisis in one region from affecting banks in other regions as well.

Collaboration crucial for stability

Finally, the regulator points out that both cyber threats and economic disruptions are cross-sectoral. European cooperation is therefore important to deal with these risks, according to DNB economist Maurice Doll. If banks cooperate across borders and conduct scenario analyses, they can increase their resilience and avoid surprises.