benoit cœure : euro cyber resilience board for pan - european financial infrastructures introductory remarks by mr benoit cœure, member of the executive board of the european central bank, at the second meeting of the euro cyber resilience board for pan - european financial infrastructures, frankfurt am main, 7 december 2018. * * * it is a pleasure to welcome you back to frankfurt. since our last meeting in march, we have been very busy at the ecb and across the eurosystem, and we have made considerable progress in our work to enhance the cyber resilience of the financial sector. the cyber threat facing the financial sector continues to be a challenge. from banking trojans affecting individual customers to systemic threats posed by ransomware and targeted attacks from advanced persistent threat ( apt ) groups, the landscape is evolving on a daily basis. at our previous meetings, we shared with you the eurosystem cyber strategy for financial market infrastructures ( fmis ) 1. this strategy rests on three pillars : individual fmi resilience, sector resilience and strategic regulator - industry collaboration. i am pleased that in the last few months, the ecb and the eurosystem have made significant progress in putting in place the building blocks for enhancing the cyber resilience of the european financial ecosystem and operationalising the strategy. we have developed two key tools to improve fmi resilience : the cyber resilience oversight expectations ( croe ) 2 and the tiber - eu framework3. the croe serves three key purposes : ( i ) it provides fmis with detailed steps on how to operationalise the cpmi - iosco guidance on cyber resilience for financial market infrastructures4, ensuring they are able to make improvements and enhance their cyber resilience over a sustained period of time ; ( ii ) it provides overseers with clear expectations against which to assess fmis under their responsibility ; and ( iii ) it provides the basis for a meaningful discussion between the fmis and their respective overseers. the public consultation on the croe provided some very useful feedback, which we carefully considered, and the final version was published earlier this week. the central banks of the eurosystem will work closely with the various financial infrastructures to enhance their cyber resilience, with the croe serving as a good basis for this work. enhancing cyber resilience is of crucial importance. equally important, however, is to test whether the enhancements that have

##es. the imf staff has taken these developments into account in the april 2017 world economic outlook ( weo ) and forecasts that world gdp growth will be noticeably higher over the next two years than in 2016 — a slight upward revision relative to the october 2016 weo. 5 there may well even be some chance that foreign economies kick into gear enough that u. s. and foreign business conditions become reasonably well aligned, as occurred during the u. s. monetary tightening cycles that began in 1999 and in 2004. in both of those episodes, u. s. exports grew substantially against the backdrop of a brisk expansion in foreign activity and a stable or even slightly depreciating dollar. of course, it is hard to predict whether foreign economies continue to strengthen so that the global economy will move more in sync — as i hope — or if a substantial gap will remain between the business cycle positions of the united states and our foreign trading partners. however, even if monetary policy divergence remains substantial, there is good reason to think that spillovers to foreign economies will be manageable. first, i expect that the fed ’ s removal of accommodation will be driven by a continued expansion of the u. s. economy ; thus, foreign economies are likely to benefit from the developments that induce the fomc to tighten. second, most foreign central banks should be able to mitigate an undesirable tightening of their own financial conditions through appropriate policy actions. an important lesson of the taper tantrum was that effective communication and actions by major central banks, including the european central bank and the bank of england, were helpful in quickly pushing bond yields down to levels that these central banks regarded as appropriate to their economic situation. third, many emes have markedly improved fundamentals — including smaller current account deficits and more anchored inflation expectations — that should allow them to better withstand the effects of u. s. tightening, though some vulnerabilities remain. finally, i expect that u. s. policy normalization will be gradual under likely scenarios for the evolution of output and inflation. a gradual and ongoing removal of accommodation seems likely both to maximize the prospects of a continued expansion in the u. s. economy and to mitigate the risk of undesirable spillovers abroad. references ammer, john, michiel de pooter, christopher erceg, and steven kamin ( 2016 ). “ international spillovers of monetary policy, ” ifdp notes. washington :