Cloud Computing Leaves Banks Exposed to Risks, EU Regulators Say

The finance industry’s dependence on a handful of large cloud computing companies to store key data is an emerging threat to financial stability, requiring new legislation to guard against vulnerabilities, according to three top European financial regulators.

The European Union watchdogs said in a report April 10 that the finance industry relies heavily on third parties and that their concerns are “especially acute with regard to cloud services.”

Businesses are moving data away from their own servers and storage centres, which require real estate, maintenance and security, into third-party cloud services. The majority of European financial firms use a handful ...