Cyber risk could underlie the next financial crisis. Increasing trade policies on cross-border financial services have been implemented to manage cybersecurity concerns. Simply complying with the fragmented policies can cause unintended consequences for businesses and can even result in new cyber threats. This study develops a taxonomy to understand the effect of trade policies for cyber-securing the cross-border financial services. The analysis reveals that a Financial Cybersecurity Action Task Force, where both public and private sectors are involved, is necessary to create and promote cyber norms to balance innovation and systematic cyber risk within cross-border financial systems.

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