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 ArticleIMF Publishes Financial System Stability Assessment Report for Malta
FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.
FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.
EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.
ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.
PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).
US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).
US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.