James Ashton: Customers will pay for Bank of England cyber measure, as usual

A bit like the European Central Bank’s stress tests of lenders’ balance sheets, you know a closer look at banks’ cyber defences will find many wanting.

During the crisis, a breach of IT systems was out of sight, out of mind. Now that banks are in recovery mode, the focus has rightly switched to tackling this faceless enemy.

Creaking computer systems is high on the agenda of Deputy Governor Andrew Bailey, who forecasts that billions must be spent. Would that banks, built by acquisitions that mean their IT is a patchwork, had the foresight to strip down the machine and start again.

The problem is that reducing risk always comes down to money. Encouraged to pile more on their balance sheet as a buffer against future shocks, how can banks fund a high-tech overhaul too? The answer will inevitably be that customers will pay for the privilege in time.