Cybercrime a growing risk to bank ratings, says S&P

Mumbai: The banking sector is becoming more exposed to cybercrime after the covid-19 pandemic accelerated digitalization and remote working, which could lead to more rating actions, S&P Global Ratings said in a report on Tuesday.

“Cyberattacks have had only a limited effect on bank ratings to date but could trigger more rating actions in the future as cyber incidents become more frequent and complex,” said S&P Global Ratings credit analyst Irina Velieva.

Cyberattacks can harm credit ratings, mainly through reputational damage and potential monetary losses. Banks and other financial institutions are attractive targets for cyber criminals because they possess valuable personal data and play a critical role in servicing particular financial or economic needs and segments, it said.