Canada’s big banks should take back control of Canadian financial institutions
BMO, CIBC, Scotiabank and Scotiaberes National Bank (CNB) have all agreed to pay back some of the money they lost to hackers who stole more than $8 billion from their customers.
The companies will have to write off the money to their Canadian financial centres as well as to other Canadian banks.
They also will have the option of using the money for projects such as buying back shares or hiring more staff.
The government also agreed to create a new, independent body that would review and monitor Canadian financial services.
The three banks said they expect to write down about $2.2 billion.
CIBC said it expects to write-off $2 billion, Scaniabank $1.9 billion and Scadiabank said it expected to write $1 billion.
The banks also agreed in principle to a plan for their own internal cybersecurity, which would involve a separate, independent entity to monitor the operations of their financial institutions.
The parties said they will meet again in the fall to discuss further steps.
The agreement includes a provision that the banks should notify their Canadian counterparties if they discover breaches.
They agreed to establish a new entity to oversee their cybersecurity.
The new entity will be led by a commissioner, a person with expertise in cybersecurity, and will have a mandate to review the banks’ cybersecurity policies, and ensure they are in compliance.
It is also expected that the new body will be tasked with developing new cybersecurity plans.