Danish central bank proposes safety net for critical payments amid hybrid threats
Danmarks Nationalbank Governor Christian Kettel Thomsen unveiled new recommendations for an extra safety net to ensure critical payments can continue during extreme scenarios, such as advanced hybrid attacks. Speaking at Finance Denmark's annual meeting, Thomsen emphasized the need for enhanced financial sector resilience.
Navigating economic shifts and emerging threats
Danmarks Nationalbank Governor Christian Kettel Thomsen emphasized the need for financial sector resilience amid global unpredictability, citing trade conflicts, pandemics, and geopolitical events.
He noted strong bank earnings and a resilient housing market nationwide, though Copenhagen's flat prices have surged by 1.5 million kr.
since February 2023. This rapid increase risks speculative expectations, underscoring the importance of sound credit principles.
Thomsen also highlighted the new security landscape, with the Defence Intelligence Service assessing Russia's hybrid war against Europe.
He stressed that advanced attacks on financial infrastructure could threaten stability, demanding an 'extra protective layer' for critical societal functions.
A two-pronged safety net for payments
To ensure critical societal activities, primarily payments, can continue during extreme scenarios like prolonged outages, Danmarks Nationalbank has issued new recommendations for an 'extra safety net'.
This framework proposes a central data collection, or 'data vault', and decentralised emergency platforms within banks.
The data vault would securely store essential customer information, such as account balances and payment card details, enabling restoration of critical services even if primary systems fail.
Banks would be responsible for developing and operating their independent emergency platforms, ensuring rapid response and continuity of essential functions.
Proactive defense for a digital age
These recommendations represent a crucial, proactive step in safeguarding financial stability against an increasingly complex threat landscape.
They rightly acknowledge that individual bank resilience is insufficient, demanding a coordinated, sector-wide approach to protect essential public services.
While requiring investment, this 'extra safety net' is a necessary defense for maintaining public trust and economic continuity in a volatile digital era.