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With the development of financial technologies known as FinTech, Cyber risks have become one of the major operational risks faced by financial institutions. For the new emerging sector of FinTech credit, recent research by the Committee on the Global Financial System and the Financial Stability Board (CGFS-FSB (2017)) indicates that Cyber risk is the major operational risk. With that regard, Stulz (2019) analyzes how the rapid development of digital technologies is likely to impact business models of the financial sector.
A deeper understanding of this evolutionary process is important for public authorities in order to understand how and where to target regulatory incentives to ensure Macro-prudential stability. It is important, however, to realize that Cyber risks...
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