Britain proposes new checks on banks' reliance on tech companies

Deputy Governor of the Bank of England for Financial Stability Sarah Breeden attends the biannual Financial Stability Report press conference, at the Bank of England, in London, Britain, December 6, 2023. REUTERS/Hannah McKay/Pool

LONDON (Reuters) -The Bank of England and Britain's Financial Conduct Authority on Thursday proposed rules to regulate the heavy reliance of financial firms on external technology companies for critical operations.

Banks, insurers, investment firms and market infrastructure use 'critical third parties' or external firms such as Microsoft, Google, IBM and Amazon for cloud computing and other services to improve efficiency.