Bank of England handed powers to regulate key tech firms including Amazon and Google

The BoE and City regulator the Financial Conduct Authority will aim to ensure the four main providers of cloud and tech services to banks are resilient and actively reducing the risk of cyber attack. Photograph: Vuk Valcic/SOPA Images/Shutterstock View image in fullscreen The BoE and City regulator the Financial Conduct Authority will aim to ensure the four main providers of cloud and tech services to banks are resilient and actively reducing the risk of cyber attack. Photograph: Vuk Valcic/SOPA Images/Shutterstock Bank of England handed powers to regulate key tech firms including Amazon and Google Direct oversight of ‘critical third parties’ such as Oracle and Microsoft given to ensure resilient cyber-defences and help safeguard UK economy The Bank of England has been handed powers to regulate important tech firms including Amazon and Google from next week, amid fears that system failures could threaten financial stability and harm consumers. From Monday, the Bank and fellow City regulator the Financial Conduct Authority (FCA) will be in charge of ensuring that four large-scale providers of cloud and tech services to banks are resilient and actively reducing the risk of cyber-attacks and major outages that could disrupt services for millions of people and businesses across the UK. This will mean having “direct” oversight of local arms of Amazon Web Services, Google Cloud, Oracle and Microsoft , all of which have been identified as “critical third parties” by the UK government, according to an announcement on Friday. Bank of England warns AI could pose financial stability risks Read more The companies will have to prove they are carrying out adequate stress testing, showing how they respond to imagined emergency scenarios that puts their operations under severe strain. They will also be forced to report to the Bank of England and FCA any major incidents such as cyber-attacks, power outages and the impacts of natural disasters. The companies’ technologies have become a crucial part of the day-to-day banking operations , including to store data, run automated fraud detection programmes and carry out digital banking services. However, relying more on online technologies – and a move away from physical branches and cash – has come with risks, with glitches half a world away causing large-scale chaos for everyday banking customers up and down the UK. Last October, Lloyds Banking Group was among more than 2,000 companies whose online services were disrupted by a glitch at Amazon’s cloud computing services operations in Northern Virginia, a major tech hub near Washington DC. The episode prompted renewed warnings over the perils of relying on a small number of foreign firms for operating services across the internet, including crucial government and financial services. Overall, customers at Britain’s main banks and building societies suffered the equivalent of more than a month’s-worth of IT failures between 2023 and 2025, according to the Treasury commi