Fed's Bowman Addresses Cyber Risks Facing Community Banks
Federal Reserve Governor Michelle Bowman delivered opening remarks at a community bank cybersecurity workshop in Denver, highlighting digital threats to smaller lenders.
Federal Reserve Governor Michelle Bowman addressed cybersecurity challenges confronting community banks in opening remarks delivered via pre-recorded video to a workshop held in Denver, Colorado, according to remarks published by the Federal Reserve Board.
The Community Bank Cyber Workshop brought together stakeholders focused on the digital security landscape facing smaller financial institutions, which regulators have increasingly identified as potential vulnerabilities within the broader banking system. Community banks, by virtue of their size and resource constraints, often face distinct challenges in building and maintaining robust cyber defenses compared to their larger counterparts.
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Bowman's appearance, conducted through pre-recorded video rather than in person, underscored the Federal Reserve's continued engagement with community banking organizations on emerging operational risks. Cybersecurity has become a top supervisory priority for federal banking regulators in recent years as the frequency and sophistication of attacks targeting financial services firms has grown.
The Fed's focus on smaller institutions reflects broader regulatory concern that community banks serve as critical infrastructure for local economies and that disruptions from cyber incidents could have outsized effects on the communities they serve. Regulators have been pressing institutions of all sizes to stress-test their cyber preparedness and incident-response capabilities.
Continue reading at FRB: Speeches.
