The Bank of Mozambique (WB) considers it necessary to strengthen the resilience of the national payments system in the face of the increased attacks it is suffering from the spread of the Covid-19 pandemic.
In the Central Bank’s view, the increase in attacks on the country’s payment system, particularly in the context of the pandemic, “has brought additional challenges for the national banking sector, and it is additionally important to strengthen the messages of caution and financial literacy”.
“These measures are crucial in a context where the use of digital banking and e-commerce is growing exponentially and, as technology advances, increasing attention is being paid to the role of infrastructure and cyber security standards in promoting financial stability,” the WB notes in its latest Financial Stability Bulletin.
The Bank of Mozambique also stresses that technology can generate vulnerability to cyber attacks, creating financial liabilities and paralysing vital financial services.
“Although efficient, these procedures make financial institutions digitally vulnerable. As cyber security threats increase, not only in number but also in complexity, authorities around the world have taken regulatory and supervisory measures to promote risk mitigation, as well as designing response plans to cyber attacks,” it stresses.
The source also explains that the Mozambican government adopted a resolution in July 2018 ratifying the African Union convention on cyber security and data protection. “Aware of the risks of cyber attacks, the Bank of Mozambique is conducting several regulatory initiatives aimed at preventing and combating cyber attacks. In parallel, it has discussed cyber-security issues with credit institutions and financial companies operating in the country,” it said.
In the bulletin, the WB states that in March discussions focused on the regulation and supervision of cyber-security in the national banking sector.
“There is a perception that cyber risk is globally recognised as one of the threats to financial markets. The occurrence of a cyber attack has a high economic cost with effects on depositors, creditors, investors and other actors in the financial system,” the Central Bank said.
