Belgium hosts a number of international financial market infrastructures (FMIs), such as Swift and Euroclear, which act as critical nodes in the smooth functioning of Belgian and international financial markets and payment services. One major event that marked 2022 was of course Russia’s invasion of Ukraine. Since the invasion and particularly the sanctions that were imposed as a result, these institutions have become more widely known to the general public, as they contribute to the implementation of these sanctions. In this challenging geopolitical environment, cyber security is of the utmost importance to FMIs. The above video shows how the National Bank of Belgium encourages the financial sector to take the necessary steps to improve its cyber resilience. 

The Financial Market Infrastructures and Payment Services Report provides an overview of the impact of the sanctions resulting from Russia’s invasion of Ukraine on some of the institutions subject to the National Bank of Belgium’s oversight and supervision. It also reviews the regulatory changes and supervisory activities in 2022 relating to these institutions. 

These critical players need to manage their operational risk very carefully in order to guarantee financial stability. Digital operational resilience was therefore again one of the NBB’s top priorities in 2022. The Report provides an update on the EU Digital Operational Resilience Act (DORA), which entered into force in January 2023 and is intended to mitigate the risks associated with the digital transformation of the financial sector by introducing common rules. Furthermore, a thematic article on the TIBER-BE programme illustrates how the National Bank aims to improve the cyber resilience of Belgian critical market infrastructures and core financial institutions.  

Emerging technologies such as distributed ledger technology (DLT) are being closely monitored by the authorities to assess their potential impact on financial stability. The EU Markets in Crypto-Assets Regulation (MiCA), for example, seeks to ensure a level playing field for consumer protection while stimulating innovation, financial stability, monetary policy transmission and monetary sovereignty. The Report also provides an update on the ongoing investigation phase regarding the implications of the issuance of a digital euro.  

Environmental and climate-related risks are another type of risk that has been receiving increased attention from the NBB and society at large. Another thematic article provides an update on these risks within the FMI landscape.