BANKING ON THE CLOUD

Cloud computing is fast becoming a ubiquitous part of today’s economy for both businesses and individuals. Banks and financial institutions are no exception. While it has many benefits, cloud computing also has costs and introduces risks. Significant cloud providers are single points of failure and, as such, are an important new source of systemic risk in financial markets.

Given this reality, this article argues that such institutions should be considered critical infrastructures and designated as systemically important financial market utilities under Dodd-Frank’s Title VIII.