Cybersecurity and financial stability

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Bibliographic Details
Authors and Corporations:	Anand, Kartik (Author), Duley, Chanelle (Author), Gai, Prasanna (Author)
Other Authors:	Duley, Chanelle [Author] • Gai, Prasanna 1969- [Author]
Type of Resource:	E-Book
Language:	English
published:	Frankfurt am Main Deutsche Bundesbank [2022]
Series:	Deutsche Bundesbank: Discussion paper ; no 2022, 08
Subjects:	Cyber attacks bank runs global games weaker-link public goods Graue Literatur
Source:	Verbunddaten SWB Lizenzfreie Online-Ressourcen
ISBN:	9783957298768

Description
Summary:	Cyber attacks can impair banks operations and precipitate bank runs. When digital infrastructure is shared, banks defend themselves by investing in cybersecurity but can free-ride on the security measures of others. Ex ante free-riding by banks interacts with the ex post coordination frictions underpinning bank runs. While the temptation to free-ride induces underinvestment in cybersecurity, the prospect of a run encourages greater investment. System-wide cybersecurity is suboptimal and sensitive to rollover risk and bank heterogeneity. Regulatory measures, including negligence rules, liquidity regulation and cyber hygiene notices, facilitate constrained efficient cybersecurity investment. We suggest testable hypotheses to inform empirical work in this area.
Physical Description:	1 Online-Ressource (circa 53 Seiten); Illustrationen
ISBN:	9783957298768