The US Treasury created a steering committee that will deal with the legal and administrative regulation of the functioning of cloud services.
According to the information contained in the report of the US Treasury Department, the current dominant position of several cloud service providers in the finance industry may negatively affect the overall operational sustainability of the entire sphere. Also, according to experts of the Ministry, this state of affairs creates a situation of inequality in the interaction of large players with small firms.
But the report also talks about the obvious benefits for financial institutions from the operation of cloud services that provide a high level of security and sustainability.
The U.S. Treasury has established an interagency steering committee on cloud services to strengthen cooperation between regulators and the private sector.
The current cloud services market is actually a joint zone of influence of Amazon Web Services, Google, and Microsoft Azure. This means that in case of problems with one of the suppliers, the entire sphere will face negative consequences.
The Ministry’s report also notes that a similar situation of the dominant position of several players is likely to be observed in the markets of banking services, securities, and insurance. Regulatory authorities, according to experts, need to eliminate significant data gaps in order to assess the likelihood of the current state of affairs affecting the industry.
Banks have told the Treasury that they rarely receive information about incidents or outages affecting their systems. For this reason, financial institutions cannot fully assess the level of risk.
Many banks are also concerned that a cyberattack or incident at one supplier could affect the entire financial sector or a significant part of it.
As we have reported earlier, Cloud-based security services are expanding in Europe.