In addition, monetary policy needs to address higher inflation and is in a process of normalisation. Higher inflation puts pressure on central banks to raise interest rates to keep inflation expectations anchored. Appropriate buffers thus need to be available within the financial system. This requires effective stress testing and a strong capital base – including by building up micro- and macroprudential buffers.
But cybercriminals have been making progress too, and they remain persistent and relentless in their pursuits. As widely reported in the press, a major cyber incident occurred at a significant bank earlier this year, seriously affecting the real economy in a specific European country. This publicly known incident reminds us of the debilitating impact a cyberattack can have on our financial system.