We will soon be setting up a dedicated unit on SupTech, to synergise and strengthen these efforts and help sharpen our supervisory practices. Cyber security And last but not least, cyber security. Cyber-attacks are a growing threat to the financial ecosystem, and FinTech could potentially accentuate this risk. As more financial services are delivered over the internet, there will be growing security and privacy concerns from cyber threats. And maybe even systemic concerns. It is not inconceivable that the next financial crisis is triggered by a cyber-attack. We need to develop the regulatory and supervisory capabilities to address these emerging threats. Cyber risk management will be the new frontier for global regulatory efforts and supervisory cooperation. The BIS has set up a taskforce to develop international guidelines on cyber-security responsibilities for banks and fund-transfer providers, with the aim of making global payments safer. More such initiatives are likely in the years ahead. Another area that will be a growing focus is information sharing. Unlike other traditional risks facing financial institutions, cyber risks are less visible and yet often afflict multiple firms at the same time given the interconnectedness of the financial sector. The sharing of timely and actionable cyber information among financial institutions is therefore key to building resilient cyber defences within the financial ecosystem. MAS has collaborated with the Financial Services Information Sharing and Analysis Centre (FSISAC) to establish an Asia Pacific (APAC) Regional Intelligence and Analysis Centre. The Centre will encourage regional sharing and analysis of cybersecurity information within the financial services sector.

The direct exposure of the French financial sector to Russian assets is contained: the liabilities of French banks vis-à-vis Russian banks account for less than 1% of their total international liabilities, and French insurers’ investments in Russian securities amount to just under EUR 500 million. The withdrawal from investments in Russia was admittedly tricky, but orderly. The conflict could have more of an impact via indirect channels, including the strong tensions in global commodity markets. For the time being, the consequences of these market movements on the French banking sector have been kept under  Page 7 of 8 control. However, the ACPR remains fully mobilised in monitoring any potential financial risks that might emerge. More broadly, the macroeconomic and financial environment has evolved significantly since last year, and the Ukraine conflict has exacerbated the inflationary pressures that were already visible at the end of 2021: we are naturally keeping a very close eye on this, like our fellow citizens. The latest inflation figures for May, for France and the other countries, confirm a rise that we were already expecting, and the need for a gradual but resolute process of normalisation. We shall take a decision at our Governing Council meeting next week, which will be in line with recent comments by the President of the ECB. After having for years listened to complaints about how low interest rates were weighing on banks and insurers, we might have expected few to voice concerns now about a rise in rates.