IMF published a working paper that reviews the fintech landscape in the Middle East, North Africa, Afghanistan and Pakistan (MENAP) and Caucasus and Central Asia (CCA) regions. The report concludes that scale and pace of fintech in MENAP and CCA countries lags other regions and fintech is yet to foster an inclusive digital economy. Furthermore, cyber risks present a major challenge because of the potential systemic risks and interaction with other risks.
The report provides an overview of fintech, its definition, architecture, benefits and risks, and the required conditions to facilitate its sound development. It then discusses the fintech landscape in the MENAP and the CCA, highlighting its scale, structure and growth drivers, regulatory and supervisory practices in the two regions, the risks and vulnerabilities posed by emerging business models, and the factors hampering fintech growth potential. Next, the report discusses the value proposition for promoting fintech in the MENAP and CCA regions. Finally, it summarizes the findings and discusses the policy options to unlock fintech’s transformative potential.
Related Link: Report
Keywords: International, Banking, Fintech, Cyber Risk, Systemic Risk, MENAP, CCA, IMF
Sam leads the quantitative research team within the CreditEdge™ research group. In this role, he develops novel risk and forecasting solutions for financial institutions while providing thought leadership on related trends in global financial markets.
Previous ArticleIMF Paper Examines Macro-Prudential Policy Frameworks Worldwide
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).