The Fintech Committee of the People’s Bank of China (PBC) published a summary of its meeting to review the work done in the area of financial technology in 2021 and set out work priorities for 2022.
The announcement notes that, in 2021, PBC has successfully implemented the Fintech Development Plan (2019-2021) as well as the pilot programs for fintech applications involving government agencies. PBC put into practice the Fintech Innovation Regulatory Facility and linked it with the Fintech Supervisory Sandbox of the Hong Kong Monetary Authority (HKMA). PBC also issued a number of regulatory rules and standards to strengthen regulation over internet financial platforms and cement the firewall against fintech risks. The work priorities for 2022 are to promote the implementation of the Fintech Development Plan (2022-2025) and further advance digital transformation in the financial sector. The key work plan activities for 2022 include:
- launching a project to enhance digital transformation in the financial sector and establishing a database of best practices as well as a system for maturity assessment of financial digitalization capabilities
- strengthening international cooperation and exchanges
- establishing and improving the framework, rules, and standards for regulation of fintech ethics and reinforcing early warning, monitoring, analysis, and agile governance with respect to the risks associated with the ethics of technology
- increasing the use of the Fintech Innovation Regulatory Facility, tightening management of the digital channels of financial services provision by commercial banks, conducting research to set rules and mechanisms for information disclosure and risk assessment concerning intelligent algorithms, and further improving financial regulation to make it more uniform, professional, and penetrating
- advancing the pilot programs for comprehensive use of financial data to enhance digital financial inclusion
- enhancing the development of digitalized regulatory capacity, improving the databases of fintech risks, loopholes, and cases as well as leveraging the regulatory technologies to make the policies more forward-looking, targeted, and effective.
Keywords: Asia Pacific, China, Banking, Fintech, Regtech, HKMA, Artificial Intelligence, PBC
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