Status: Draft -- Not PublishedWill be live at 11/13/2017 00:00
IIF comments on fintech implications for banks and supervisors
Monday, November 13, 2017
The IIF has responded to the Basel Committee on Banking Supervision's consultation on "Sound practices: implications of fintech developments for banks and bank supervisors." The response stresses that supervisory and regulatory approaches should carefully balance addressing risks from new business models and structures with supporting innovation, including at existing institutions. Specifically, the IIF argues that regulatory framework addressing fintech risks and opportunities in the financial sector should be:
- risk-based, to address risks regardless of the business model involved in them;
- flexible, to address risk regardless of the underlying technology;
- holistic, to incorporate tech-related risks that have traditionally not been associated with finance;
- based on cross-border cooperation, to prevent arbitrage and regulatory fragmentation.'