Featured Product

    EBA Responds to EC Consultation on Digital Finance Strategy for Europe

    June 29, 2020

    EBA published its response to the EC consultation on a new Digital Finance Strategy for Europe. The response stresses that EBA is committed to securing technology neutrality in regulatory and supervisory approaches and strongly supports the EC initiative toward the new Digital Finance Strategy. EBA supports the proposed initiatives of EC and identifies additional actions to develop a high-level artificial intelligence principle-based framework, support the scaling of regtech and suptech initiatives, and facilitate "machine readability" and the standardization of concepts, definitions, and reporting obligations across EU financial services legislation. EBA looks forward to the publication of the Digital Finance Strategy and stands ready to play its role in optimizing the EU Single Market for digital finance.

    EC had published its consultation on a new Digital Finance Strategy for Europe in April 2020. The consultation built on the outcome of work carried out in accordance with the March 2018 Fintech Action Plan, including the actions undertaken by EBA pursuant to its Fintech Roadmap. In its response, EBA has identified a wide range of possible EU-level actions to support the cross-border scaling of innovative technology while ensuring high standards of consumer protection and financial sector resilience. EBA supports proposed enhancements to coordination mechanisms, such as EBA’s Fintech Knowledge Hub and the European Forum for Innovation Facilitators (EFIF), to facilitate a stronger dialog between industry and regulatory and supervisory authorities on innovation-related issues. EBA agrees with the focus of EC on:

    • Ensuring that the EU financial services regulatory framework is fit for the digital age
    • Enabling consumers and firms to reap the opportunities offered by the EU-wide Single Market for digital financial services
    • Promoting a data-driven financial sector for the benefit of EU consumers and firms
    • Strengthening digital operational resilience

    Toward these goals, EBA supports the actions identified by EC. EBA underscores the need for work on a high-level artificial intelligence principle-based framework as an appropriate foundation for the wider use of artificial intelligence in the financial services. EBA sets out a three-step approach to facilitate a common approach to the use of regtech and support interoperability. EBA also identifies potential measures to facilitate the gathering of best practices and trends on suptech and promote or facilitate the (collective) development of selected specific suptech use cases where there is a role for EBA in acting as a center for excellence and networking to help instigate scalable suptech across the Single Market. Finally, EBA emphasizes the potential of fintech in facilitating structural changes in the financial sector, including by supporting new business models. As new business models emerge (for example, ecosystems for stablecoins), new supervisory models may be needed to ensure effective oversight of applicable regulatory measures such as governance, operational resilience, and consumer protection requirements.

     

    Related Links

    Keywords: Europe, EU, Banking, Fintech, Regtech, Suptech, Digital Finance Strategy, Reporting, Machine-Readable Regulations, Basel, EC, EBA

    Featured Experts
    Related Articles
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    News

    US Agency Publications Address Basel, Reporting, and CECL Developments

    The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances

    May 09, 2022 WebPage Regulatory News
    News

    SEC Extends Comment Period on Climate Risk Disclosures

    The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.

    May 09, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8187