IMF published a working paper that reviews the fintech landscape in the Middle East, North Africa, Afghanistan and Pakistan (MENAP) and Caucasus and Central Asia (CCA) regions. The report concludes that scale and pace of fintech in MENAP and CCA countries lags other regions and fintech is yet to foster an inclusive digital economy. Furthermore, cyber risks present a major challenge because of the potential systemic risks and interaction with other risks.
The report provides an overview of fintech, its definition, architecture, benefits and risks, and the required conditions to facilitate its sound development. It then discusses the fintech landscape in the MENAP and the CCA, highlighting its scale, structure and growth drivers, regulatory and supervisory practices in the two regions, the risks and vulnerabilities posed by emerging business models, and the factors hampering fintech growth potential. Next, the report discusses the value proposition for promoting fintech in the MENAP and CCA regions. Finally, it summarizes the findings and discusses the policy options to unlock fintech’s transformative potential.
Related Link: Report
Keywords: International, Banking, Fintech, Cyber Risk, Systemic Risk, MENAP, CCA, IMF
Sam leads the quantitative research team within the CreditEdge™ research group. In this role, he develops novel risk and forecasting solutions for financial institutions while providing thought leadership on related trends in global financial markets.
Previous ArticleIMF Paper Examines Macro-Prudential Policy Frameworks Worldwide
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).
EBA has decided to phase out the guidelines on legislative and non-legislative moratoria of loan repayments, in accordance with the earlier specified end of September deadline.