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ailtrahq · 2 years ago

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The fallout from the banking crisis earlier this year continues as the Basel Committee on Banking Supervision considers requiring banks to disclose their crypto asset holdings. The committee, which operates under the aegis of the Bank for International Settlements, identified holding crypto as one of the factors that led to the demise of several banks in March.At its meeting on Oct. 4–5, the committee looked at the causes behind the failures of Silicon Valley Bank, Signature Bank of New York and First Republic Bank, as well as the near-failure of Credit Suisse, which was later bought by its competitor UBS.According to the committee’s report, three structural trends may have indirectly contributed to the banks’ failures: the increasing role of nonbank intermediation in recent years, crypto assets concentrated in a small number of banks and the ability of customers to move their funds faster due to increasing digitalization. The report also examined policy issues in detail. Supervisory and regulatory issues in the banking crisis of 2023. Source: Basel CommitteeThe report especially highlighted the role of crypto in the failure of Signature Bank. The committee found:SBNY’s significant client concentration of digital asset companies put it in a precarious position when the “crypto winter” hit in 2022. […] SBNY’s poor governance and inadequate risk management practices put the bank in a position where it could not effectively manage its liquidity in a time of stress. Signature was closed by the New York State Department of Financial Services on March 12. The regulators stated at the time that crypto was not behind its decision.The discussion is not an indication of planned revisions to the Basel Framework, the report said. In January, the committee amended its framework to limit crypto assets in bank reserves to 2%. At its 4-5 October meeting, the #BaselCommittee agreed to consult on cryptoasset and climate disclosures, approved the annual G-SIB assessment and published its report into the banking turmoil of early 2023 #BaselIII #FinancialRegulation pic.twitter.com/aSRw7YYHP7— Bank for International Settlements (@BIS_org) October 5, 2023 A statement accompanying the report said a consultation paper on crypto asset exposure disclosure would be published soon.This is only the latest rehash of the banks’ difficult days in March. The United States Federal Reserve Bank and the Federal Deposit Insurance Corporation (FDIC) published their conclusions on the events in April, with the FDIC taking another look at it in August.

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digitaltalkindia-blog · 8 years ago

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New Post has been published on Digital Talk

New Post has been published on https://goo.gl/qstvG0

IIM Students finds Serious Flaws in Indian E-Wallet Apps

India has seen a surge in the number of digital transactions in the last one year. This push came as a result of better IT infrastructure, internet connectivity, demonetization drive by Govt of India and an increased number of players providing digital payment solutions.

While shifting to a digital economy has had its perks for the users, it comes with a heightened need for cyber-security. Globally, there have been major incidents highlighting the importance of cyber-security on various platforms.

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In this context, the common question arises as just how safe are the Indian payment solution services?

The Centre for Software and IT Management (CSITM) recently conducted a study at IIM Bangalore focusing upon the cyber-security risks that the digital payment solutions carry if any.

“We conducted experiments with five popular mobile payment systems, in four broad categories – wallets (PayTM, FreeCharge), direct link with user’s bank (BHIM), specific bank’s app for account holders (iMobile by ICICI Bank), and basic USSD service (dialing *99#),” said Rahul De, Chairperson, CSITM, and faculty in the Decision Sciences and Information Systems area at IIM Bangalore.

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The study evaluated the apps on the following six key security principles based on the Basel Committee’s ‘Risk Management Principles for Electronic Banking’ and RBI norms for electronic banking transactions:

• The potential for confidentiality breaches • The management of the transactions for subsequent repudiation • The strength of the authentication process • The data and transaction integrity procedures • The extent of access and availability of services • The procedures for maintaining privacy of customer information

The study pointed towards some serious privacy and security concerns. For instance, some e-wallet apps like PayTM allow automatic linkage with third party vendors. This can result in automatic amount deduction from the user’s account without the consent of the user.

Confidentiality breaches were potentially possible for almost all the mobile payment solutions except USSD.

Another major security concern was that many apps (such as PayTM, Freecharge) do not log the users out automatically. This means that anyone in possession of a phone with such apps can make digital transactions using that account, even if it is not the original owner.

In contrast, apps like iMobile and BHIM come with a session time-out feature that acts as an auto-logout security mechanism.

While Rahul De criticised the inadequate management of transactions in these digital solutions and termed them as a security violation, he clearly mentioned that the study was conducted from December 16 to January 17 and that there might be changes made to these apps since then.

Source

#BaselCommittee #bhim #FreeCharge #iimbanglore #imobile #Paytm #USSD

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