LONDON, U.K.: Britain has placed Microsoft, Google, Amazon and Oracle under direct regulatory oversight after designating them as critical third-party suppliers to the country's financial sector in a move aimed at strengthening financial system resilience.

The designation is intended to reduce the risk of widespread disruption caused by cyberattacks or technology outages as banks and other financial institutions become increasingly dependent on cloud computing services.

"As banks, insurers and financial market infrastructures become increasingly reliant on cloud services, disruption at a major supplier could affect multiple firms at the same time, potentially impacting services customers depend on," the government said in a statement on Friday.

The government designated Microsoft Ireland Operations Ltd, Google Cloud EMEA Ltd, Amazon Web Services EMEA SARL and Oracle Corporation UK Ltd as critical third-party providers, with the new rules taking effect on July 13.

The Bank of England will jointly supervise the companies, the Prudential Regulation Authority and the Financial Conduct Authority. They will be required to undergo resilience testing, carry out regular self-assessments and report major incidents.

Britain's approach differs from that of the European Union, which designated 19 technology and services companies under a similar regulatory framework in November.

A Google Cloud spokesperson welcomed the move, saying, "With effective implementation and meaningful industry engagement, this new Critical Third Party framework can enhance the long-term resilience of the UK's financial ecosystem and increase understanding, transparency, and trust between all parties."