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

    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).

    February 28, 2024 WebPage Regulatory News
    News

    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.

    February 28, 2024 WebPage Regulatory News
    News

    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.

    February 26, 2024 WebPage Regulatory News
    News

    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.

    February 23, 2024 WebPage Regulatory News
    News

    ECB to Expand Climate Change Work in 2024-2025

    Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.

    February 23, 2024 WebPage Regulatory News
    News

    BIS Bulletin Examines Cognitive Limits of Large Language Models

    The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.

    January 25, 2024 WebPage Regulatory News
    News

    ECB is Conducting First Cyber Risk Stress Test for Banks

    As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.

    January 24, 2024 WebPage Regulatory News
    News

    EBA Continues Momentum Toward Strengthening Prudential Rules for Banks

    A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.

    January 24, 2024 WebPage Regulatory News
    News

    EU and UK Agencies Issue Updates on Final Basel III Rules

    The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards

    December 19, 2023 WebPage Regulatory News
    News

    Industry Agency Expects Considerable Uptake for Swiss Climate Scores

    The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.

    December 18, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8952