The bank-regulator information sharing is essential because:

• Enables the systematic monitoring of the financial industry by the regulators
• The regulatory requirements or recommendations by the regulators can be enhanced to adjust the policies and strategies given the information collected
• The regulators can effectively oversee the incident resolution
• A robust cyber-risk response framework can be developed through the active sharing of the information with industries and the regulators.

Things to Remember

• Basel Committee on Banking Supervision (BCBS) sets global standards for the regulation, supervision, and risk management of banks and financial institutions.
• Information sharing between banks and regulators is crucial for maintaining financial stability and preventing systemic risks.
• Regulators use the information collected to conduct stress tests, assess risk exposures, and ensure compliance with regulations.
• Effective oversight by regulators helps in early detection and resolution of issues, reducing the likelihood of financial crises.
• Cyber-risk management is a critical aspect of regulatory oversight in the modern