BIS to Set Up Innovation Hubs in Hong Kong, Singapore, and Switzerland
BIS approved the establishment of a BIS Innovation Hub to foster international collaboration on innovative financial technology (fintech) within the central banking community. The Innovation Hub would complement the already well-established cooperation within the existing committees. In the initial setup phase, the Hub Centers will be established in Switzerland (Basel), Singapore, and Hong Kong with the support of the respective regulators in each country—that is, SNB, MAS, and HKMA. These regulators have also published statements welcoming the establishment of Innovation Hubs.
The Hub will span multiple locations. The first two Hub Centers will be set up in Basel and Hong Kong, making use of the existing BIS facilities. The third Hub Center will be established in Singapore, subject to the completion of the necessary institutional arrangements. As part of the second phase of implementation additional Hub Centers will be added across Americas and Europe. The Hubs will be tasked with identifying and developing in-depth insights into critical technology trends affecting central banking, developing public goods in the technology space to improve functioning of the global financial system, and serving as a focal point for a network of central bank experts on innovation. Jens Weidmann, Chairman of the BIS Board of Directors, said that the establishment of the BIS Innovation Hub will, among others, help central banks to keep abreast of regulatory requirements with the objective of safeguarding financial stability.
Here's what HKMA, MAS, and SNB had to say on the establishment of Innovation Hub Centers:
- The HKMA Chief Executive Mr. Norman Chan said: "This is a clear recognition of Hong Kong’s leading role in the development and application of innovative financial technologies and its vibrant fintech ecosystem. As a member of the BIS, the HKMA welcomes the establishment of the Hub and is fully supportive of its work. We will work closely with the Hub to contribute to its research projects on technology and innovation to foster better collaboration among central banks and the wider community.”
- As per MAS, the move by BIS to set up an Innovation Hub Center in Singapore reflects the country's position as a leading international fintech center, with an advanced fintech ecosystem. In collaboration with the other central banks, the Singapore Hub aims to develop the technology architecture for an efficient and secure digital global financial system and facilitate experiments in the application of technology to enhance financial regulation. The Singapore Hub will commence operations as soon as the institutional arrangements for its establishment have been finalized.
- Thomas J. Jordan, Chairman of the Governing Board of SNB, said: “The SNB is already keeping very close track of technological innovations in the financial area and works actively within the central banking community in identifying and assessing relevant developments at an early stage." The Hub will serve as a focal point for a network of innovation experts from central banks of BIS member countries, according to SNB.
Related Link: BIS Press Release
Keywords: International, Europe, Asia Pacific, Switzerland, Singapore, Hong Kong, Banking, Fintech, Innovation Hub, Fintech Ecosystem, Regtech, MAS, HKMA, SNB, BIS
Next Article
FSB Issues Summary of its Plenary Meeting in JuneRelated Articles
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.
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.