US banks to report cybersecurity incidents within 36 hours

US banks will now have to report significant cybersecurity incidents to the government within 36 hours, according to sources reported by Bloomberg.

The news comes as banks in the UK are also facing scrutiny from regulators regarding the quality of their cyber defences.

A Bank of England (BoE) backed project set to test the IT resilience of the UK’s financial services (FS) sector was opened to FS firms of all sizes in October, according to sources reported by the Financial Times.

The US rule will apply to incidents expected to materially impact a bank's ability to conduct its operations, or which could impact the stability of the financial sector according to the sources.

Previously, there were no specific laws in the US governing how quickly banks needed to report cyber incidents.

The rule, approved by the Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency, issued on Thursday is set to come into effect on May 1.

The sources said the new rule will also impact third parties who provide services to banks.

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