By Jim Bulling and Michelle Chasser
The Chair of the Financial Stability Board (FSB), Mark Carney, has sent a letter to G20 finance ministers and central bank governors outlining the FSB’s priorities for 2016.
One of the five priorities is to assess the implications of fintech innovations and systemic risks that may arise from operational disruptions. The FSB is currently evaluating potential financial stability implications of fintech for the financial system as a whole. The findings of this evaluation will be discussed at the FSB’s March Plenary meeting.
The letter also acknowledged that a number of fintech innovations are now receiving close attention and that the regulatory framework must be able to manage any systemic risks without stifling innovation.
Any decisions made by the FSB following the assessment are likely to have a flow on effect to how G20 members including the US, the UK, Australia and the EU regulate the fintech sector.
The Chair’s letter can be found here.