The Banking Supervision Department announces the removal of barriers to using cloud computing services
The Banking Supervision Department is publishing today an amendment to Proper Conduct of Banking Business Directive no. 362 on “Cloud Computing”. The amendment essentially removes the barrier to using cloud-computing services (services, applications, and infrastructures) in Israel and abroad, in all computing services in the banking corporations, including core systems. The obligating principle is to impose the responsibility and risk management on the banking corporation’s management and its board of directors. The change is essentially in line with what is accepted at advanced regulators worldwide in the banking sector.
The process will be carried out in accordance with professional principles established in the following aspects: corporate governance, compliance risk evaluation, regulation and legal risks, protection of privacy, data and cyber security, operational perspectives, business continuity, examining the adequacy of the cloud computing services provider and the contract with the provider, including having a plan for ending the contract.
The amendment includes requirements of the banking corporations to update their policy for using cloud computing services, to define areas of responsibility for management, control, authorization and documentation of cloud computing services in the banking corporation, and to define a model of permissions and functions at the banking corporation and at the cloud services provider.
Supervisor of Banks Mr. Yair Avidan said, “Cloud computing services promote and enhance the organizational computing abilities and enable organizations, including banking corporations, to increase efficiency and respond rapidly to market needs. The amendment to the directive removes the barrier to using cloud computing services in core banking systems and it is in line with changes in the world of technology, in which various technological pillars are provided as a service by technology companies. This process joins other steps being taken by the Banking Supervision Department in recent years to align banking in Israel with the changing competitive world and to advance the technology, for customers’ benefit, while maintaining the stability of the banking system.”