PBC released its Fintech Development Plan (2019—2021), which outlines guidelines, basic principles, development targets, key tasks, and supportive measures for fintech development in the next three years. As the plan envisions, by 2021, PBC will institute a sound fundamental framework for fintech development supported by multiple pillars; the pillars involve further enhancing technological application in the financial sector; achieving in-depth integration and coordinated development of finance and technology; elevating public satisfaction via digital, Internet-based, and intelligent financial products and services; and promoting the fintech development in China to be world-leading.
Through these efforts, the aim is to secure the progressive and controlled application of fintech, achieve steady enhancement of financial service capacities, realize marked improvement of financial risk control, ensure continuous boosting of financial regulation efficiency, and realize constant improvement of fintech in supporting the real economy. The plan has laid down six key tasks:
- One task is to strengthen the strategic deployment of fintech, improve forward-looking top-level design, identify fintech development trends, and concentrate on coordinated planning, optimize systematic arrangement, and build talent.
- The plan calls for proper fintech applications and suggests the important role of key breakthroughs to drive overall development.
- It seeks enhanced quality and efficiency of financial services.
- The plan highlights the need to enhance technological capacity in preventing financial risks. It calls for efforts to properly handle the relationship between security and development and leverage fintech to identify, curb, and tackle cross-market, cross-industry, and cross-regional financial risks against strengthened control of cyber-security risks and the protection of financial information; the aim is to guard against risks related to the application of new technologies and firmly defend the bottom line of preventing systemic financial risks.
- The fintech development plan proposes to strengthen fintech regulation via building a sound system of fundamental fintech regulatory rules, accelerating the formulation, monitoring, analysis, and assessment of such rules. Exploring innovative management mechanisms for fintech, facilitating integrated statistics for the financial sector, and making financial regulation more professional, unified, and penetrating.
- It makes a point of consolidating basic support for fintech, continuously improving fintech ecosystem, optimizing relevant governance systems, and taking appropriate steps in the fields of technology, laws and regulations, credit services, standards, and consumer protection to drive the healthy and orderly development of fintech.
Keywords: Asia Pacific, China, Banking, Fintech, Development Plan, Governance, Cyber Risk, PBC
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.