NBFIs asked to set up cybersecurity teams
Bangladesh Bank has asked non-banking financial institutions (NBFIs) to form their own cybersecurity management teams in order to monitor and thwart digital threats.
The cybersecurity teams will have to present the overall status of the IT security and system backup during board meetings, according to a notice of the BB yesterday.
At the end of each working day, the backup of the overall ledger and database should be collected and stored properly as per the guidelines. There are 36 NBFIs operating in the market in Bangladesh.
Bangladesh's financial sector is increasingly embracing digital banking by rolling out various retail products. For instance, many lenders have already introduced app-based banking, enabling clients to carry out banking activities online. In addition, some banks are setting up cash recycling machines to replace the existing automated teller machines.
The ongoing coronavirus pandemic has given a boost to these digital initiatives as they helped people settle transactions without having to visit their local branches.
Against this backdrop, there is a strong requirement to strengthen IT security in the financial sector. Accelerated digitalisation and remote working arrangements have increased the global financial sector's exposure to cyber-risks and could lead to more complex cyberattacks that trigger higher losses, according to global rating firm S&P.