CloudSigma is EBA Recommendations Compliant
EBA Recommendations Compliant Public Cloud
The European Banking Authority (EBA) is an independent EU Authority which works to ensure effective and consistent prudential regulation and supervision across the European banking sector. The EBA issues a set of Recommendations which deliver guidance on the outsourcing by institutions to cloud service providers. CloudSigma’s services are compliant with EBA’s framework for cloud service providers.
The EBA Recommendations intend to clarify the EU-wide supervisory expectations if institutions intend to adopt cloud computing, so as to allow them to leverage the benefits of using cloud services, while ensuring that any related risks are adequately identified and managed. You can review the recommendations here.
What Does EBA Recommendations Compliance Guarantee?
• The guidance set out in the EBA Recommendations contains specific directions on how to assess the materiality of cloud outsourcing. The materiality of cloud outsourcing determines whether an institution is required to adequately inform its competent authority about it.
• The EBA Recommendations on outsourcing to cloud service providers include guidance on the security of the data and systems used. They also address the treatment of data and data processing locations in the context of cloud outsourcing.
• The Recommendations have been issued in 2017 as a response to the growing interest on the part of institutions in using the services of cloud service providers.
Security and where we keep the data is very important for our end customers. This is all cash register data,
revenues, etc., which is highly relevant for the accounting. Keeping this data safe in Switzerland was a major
factor when selecting a cloud provider although not the only one.
– Ron Ritschard, Owner at Baldegger+Sortec AG
EBA Recommendations Characteristics & Requirements
EBA contributes to the creation of the European Single Rulebook in banking whose objective is to provide a single set of harmonised prudential rules for financial institutions in the EU. The Authority also plays a role in promoting convergence of supervisory practices and is mandated to assess risks and vulnerabilities in the EU banking sector.
The EBA Recommendations apply to credit institutions and investment firms. The principle of proportionality applies throughout the recommendations, which should be employed in a manner proportionate to the size, structure and operational environment of the institution, as well as the nature, scale and complexity of its activities.
The growing importance of cloud services as a driver of innovation and the increasing interest for the use of cloud outsourcing solutions within the banking industry have prompted the EBA to develop these Recommendations on its own initiative.
For more information about CloudSigma’s EBA Recommendations compliance you can contact us here.