moral vocabularies extends much further : “ fiduciary ” comes from the latin word “ fides ”, meaning faith, and a lot of the religious vocabulary was initially drawn from finance, including concepts such as “ redemption ”. see graeber ( 2011, op. cit. ) for a discussion. 5 some have argued more generally that information - insensitive assets can aggravate crises by blurring the awareness of tail risk ; see hanson, s. g. and sunderam, a. ( 2013 ), “ are there too many safe securities? securitization and the incentives for information production ”, journal of financial economics, vol. 108, no 3, june, pp. 565 – 584. 6 ben bernanke and his co - authors made a similar argument concerning private safe assets : market participants have invested in assets ( e. g. securitised ones ) falsely labelled as safe not because they trusted the labels, but because they expected government support in the event of bad outcomes. see bernanke, b., bertaut, c., pounder demarco, l. and kamin, s. ( 2011 ), “ international capital flows and the returns to safe assets in the united states, 2003 – 2007 ”, board of governors of the federal reserve system international finance discussion paper, no 1014, february. 7 this taxonomy comes from gelpern, a. and gerding, e. ( 2016 ), “ inside safe assets ”, yale journal on regulation, vol. 33, issue 2, summer. 8 regulation acknowledges assets as safe because they are less risky, as is the case of the “ high quality liquid assets ” constituting banks ’ liquidity buffers. but regulation also makes assets safe because their default would create disruptions against the public interest : repurchase agreements are bankruptcy - remote because impairing the repo market would compromise liquidity provision to the economy. 9 according to the spring 2016 eurobarometer published by the european commission, 27 % of european citizens trust their own government and 33 % trust the european union, while support for the euro is stable at 68 % in the euro area. 10 for a theory of banking supervision as the delegated monitoring of banks in the interest of depositors, see dewatripont, m. and tirole, j. ( 1994 ), the prudential regulation of banks, mit press.

sabine lautenschlager : towards a more cyber secure financial system - the role of central banks statement by ms sabine lautenschlager, member of the executive board of the european central bank, at the g7 2019 conference on " cybersecurity : coordinating efforts to protect the financial sector in the global economy ", paris, 10 may 2019. * * * as we all know, cyber threats to the financial sector are continuously evolving and becoming ever more sophisticated. the attackers – whether they be 16 - year old script kiddies, hacktivist groups or even nation states – are dynamic and agile. they have different reasons for targeting the financial sector, but they each have the potential to cause disruption. besides stealing money and data, they can undermine confidence in the entire financial system. so what can we, as public authorities, do? as the central banker on this panel, i will, of course, focus on what central banks can do. i will first outline some key trends in the financial sector, which make it vulnerable to cyber threats. i will then share some of the insights gained from the ecb ’ s key initiatives on cyber risk. trends in the financial sector we see a number of trends in the financial sector related to cyber risk : first, the close interconnection and complexity of the financial system creates vulnerabilities which can be exploited by cyber attackers. second, attackers seem to be gaining an ever deeper understanding of how the financial system operates. this enables them to swiftly detect and exploit weaknesses more efficiently and should be a concern for us all. third, both banks and financial market infrastructures are struggling to find staff with the skills and experience needed to fend off cyber - attacks. indeed, the skills gap extends well beyond the financial sector. all relevant stakeholders need to urgently work on strategies to make sure that our workforce has the right skills for our future economies, and that our society is able to reap the benefits of innovation. finally, true innovation is always disruptive. fintech might disrupt financial markets in positive ways. but it also comes with risks : fiercer competition could lead some market players to embrace and adopt new technologies, services or methods before fully grasping the related risks – cyber - risks in this case. let me point to some information and knowledge we have gathered at the ecb in our banking supervisory function as well as in our oversight function for financial market infrastructures. we do see room for improvement at banks and financial market infrastructure