BOT Launches Testing for P2P Lending Platform Under Regulatory Sandbox
BOT launched testing for peer-to-peer (P2P) lending platform under the regulatory sandbox. It also announced that DeepSparks Peer Lending Co., Ltd. is the first service provider participating in the test under the regulatory sandbox.
Peer-to-peer lending platform is an electronic platform provider that takes a matchmaker role between lenders and borrowers. Its roles also include facilitating loan contracts and carrying out fund transfers and repayments between the parties. The platform is to be an alternative means for people to gain access to credit with appropriate costs. Prior to applying for a license from the Ministry of Finance, BOT requires any person who would like to operate the business to test their service in the regulatory sandbox, to ensure proper risk management and consumer protection. The BOT regulatory sandbox is the regulatory framework to accommodate provision of financial services that leverage new technologies. It allows financial service providers to test their services and facilitate adoption of new technology in a live environment within the limited, well-defined scope. The main objectives of the regulatory sandbox are to promote financial innovations, protect consumer rights, and contain acceptable risks.
Keywords: Asia Pacific, Thailand, Banking, Regulatory Sandbox, P2P Lending, Fintech, Regtech, Credit Risk, BOT
Previous ArticleRBI Proposes Revisions to Regulations for Housing Finance Companies
NGFS Updates Address Short-Term Climate Scenarios and Transition Plans
The Network for Greening the Financial System (NGFS) is exploring the development of short-term climate scenarios to complement its existing scenario framework of long-term climate scenarios.
ISSB Updates Address ESG Issues while IASB Consults on Impairments
The International Sustainability Standards Board (ISSB) is seeking feedback, until August 09, 2023, on the exposure draft that sets out the methodology proposed by ISSB to amend the Sustainability Accounting Standards Board (SASB) Standards' metrics
ESRB Publishes Report on Cryptos and DeFi; ECB Updates on Digital Euro
The European Systemic Risk Board (ESRB) published a report that outlines the systemic implications of crypto markets and proposes policy options to address the risks stemming from crypto-assets and decentralized finance or DeFi.
EU Agencies Issue Updates on DORA, ESAP, and Crowdfunding Regulation
The European Supervisory Authorities (ESAs) published a discussion paper on their joint advice to the European Commission (EC) on proposals to specify criteria for critical information and communication technology (ICT) third-party service providers
UK Authorities Issue Updates, Finalize Policy on Model Risk Management
The Prudential Regulation Authority (PRA) finalized the model risk management principles for banks, the policy statement PS5/23 on risks from contingent leverage, and PS4/23 on moving senior managers regime forms from the PRA Rulebook.
APRA Revises Implementation Timeline for Operational Risk Standard
The Australian Prudential Regulation Authority (APRA) updated the implementation date of the new cross-industry prudential standard CPS 230 on operational risk management
BCBS Consults on Basel FAQs and Amendments, Issues Other Updates
The Basel Committee on Banking Supervision (BCBS) published a report assessing implementation of the global Basel standards on net stable funding ratio (NSFR) and large exposures (LEX) in South Africa
EBA Announces Multiple Regulatory and Reporting Updates in April 2023
The European Banking Authority (EBA) published consultations on the amendments to the guidelines on risk-based anti-money laundering and countering the financing of terrorism (AML/CFT) supervision
FSB Issues Statement on USD LIBOR Transition, Issues Other Updates
The Financial Stability Board (FSB) released a report that offers insights into how financial institutions incorporate climate-related metrics into their compensation frameworks
ACPR Issues Updates on Reporting by Banks and on DLT Pilot Scheme
The French Prudential Supervisory Authority (ACPR) published reporting updates for the banking sector