Cyberattacks are the biggest risk to the UK financial system, according to new research from the Bank of England.

However, financial institutions remain confident in their ability to fend off attacks, and believe they are more likely to suffer from the impact of rising inflation.

The Bank’s H2 systemic risk survey polled 65 executives in the UK financial sector, and shows that 74% of respondents deemed a cyberattack to be the highest risk to the financial sector in both the short and long term, followed closely by inflation or a geo-political incident.

The number of respondents who believe their company is at high risk of attack grew rapidly this year, from 31% in the first half of the year to 62% in the second. Those considering the threat to be low has decreased by 20%, to just 3%. What’s more, 83% believe that cyber risk in the financial sector has increased in the past year.