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
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