BIS: Fintech regulation: how to achieve a level playing field
11:04 04 februari
in Geen onderdeel van een categorie
BIS published an occasional paper titled Fintech regulation: how to achieve a level playing field.
The study explains how regulation should evolve to encourage fair competition between traditional banks and new fintech and big tech. Some advocate moving from an entity-based to an activity-based regulatory approach under the principle “same activity, same regulation”, writes Fernando Restoy, Chairman of Financial Stability Institute.
Abstract:
- How regulation should evolve to encourage fair competition between traditional banks and new fintech and big tech players is now being debated.
- Some advocate moving from an entity-based to an activity based regulatory approach under the principle “same activity, same regulation”.
- However, there is only limited scope for further harmonising the requirements for different players in specific market segments without jeopardising higher-priority policy goals.
- In fact, there seems to be a strong case for relying more, and not less, on entity-based rules.
- The regulatory framework should incorporate entity-based requirements for big techs in areas such as competition and operational resilience that would address the risks stemming from the different activities they perform.
- This strategy would not only help regulation to achieve its primary objectives, but would also serve to mitigate competitive distortions.