As sovereign bonds account for a large share of bank assets, doubts about sovereign creditworthiness directly translate to a reevaluation of banks’ assets, and consequently to doubts about the solvency of these banks. In the future, the SRM will ensure that the costs of bank failure are borne first and foremost by the private sector, with sovereigns providing funds only in exceptional circumstances.
The working group’s proposal seeks to address this by facilitating information and intelligence sharing, enabling you to better protect yourselves and the wider ecosystem. As discussed at our last meeting, regulatory reporting on cyber incidents is intentionally not part of this work.