MNI BRIEF: War Raises Banks' Need For Operational Resilience

The imposition of sanctions following Russia’s invasion of Ukraine highlights the extent to which banks need to “expect the unexpected,” ECB Supervisory Board member Anneli Tuominen said in an interview published Wednesday in which she highlighted the increasing relevance of of operational resilience.

“[T] he sanctions imposed on Russia have exposed banks to several challenges that affect not only their asset quality, but also their operations and the services they both offer and rely on,” she said. “Considering the ongoing trend of digitalisation and outsourcing, operational resilience is becoming even more important. Banks and supervisors need to pay more attention to these developments, also from a qualitative point of view.”