More rules may not be the best answer to protecting the financial system against cyber attacks, a Federal Reserve official said.
“I don’t think the solution to the cybersecurity problem rests in regulation,” Arthur Lindo, senior associate director of the Fed’s division of supervision and regulation, said Monday at a banking conference in New York. “We’re going to try a more flexible approach.”
The Fed and other regulators issued a notice of proposed rulemaking on cyber risk management standards last year, which is typically followed by a prospective rule. After the industry and others involved in computer security discouraged regulators from creating a standard, they decided not to proceed, Lindo said.