BaFin Issues Digitization Strategy for Supervision of Financial Sector
BaFin published its digitization strategy in the context of the progressive digitization and the phenomenon of "Big Data and Artificial Intelligence" (BDAI), which are rapidly changing the financial market. The three pillars of this digitization strategy are supervising and regulating changes stemming from digitization, ensuring safety of IT systems and data used by supervisors, and developing or transforming BaFin in the face of advancing digitization.
With its digitization strategy, BaFin wants to show how it intends to set the course in these three fields of action. The digitization strategy document describes the overall goals for each field of the above three fields of action. In addition to the baseline and the status quo, a selection of the next steps currently planned to achieve those goals have been also listed. However, in view of the constant digital change, such a representation cannot cover the entire spectrum of all necessary measures. In addition, neither the overall goals nor the paths there are static. Therefore, these measures continue to evolve dynamically and need to be continuously reviewed and adjusted, if necessary. In many areas, the authority already works and thinks largely digitally. However, BaFin is guided by an ambitious benchmark: from 2025 onward, it wants to be one of the world's leading supervisory authorities in dealing with the ongoing digitization.
Related Links (in German)
Keywords: Europe, EU, Germany, Banking, Insurance, Regtech, Suptech, Digitization Strategy, BaFin
Previous Article
PRA Consults on Modeling Issues Under Solvency II Internal ModelsRelated Articles
OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks
The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
