BAFT Response to BCBS Consultation on Fintech

by Ava Evans | Nov 08, 2017
On October 31, BAFT filed a response to the Basel Committee for Banking Supervision’s consultative document entitled Sound Practices: Implications of fintech developments for banks and bank supervisors.

On October 31, BAFT filed a response to the consultative document entitled Sound Practices:  Implications of fintech developments for banks and bank supervisors that was issued by the Basel Committee for Banking Supervision (“BCBS”) in August.  A working group of organizations that participate in BAFT’s Innovation Council contributed to the BAFT response. 

In the response, BAFT communicates its broad support for each of the ten observations and recommendations that the BCBS sets forth in the consultative document.  We agree that more frequent and substantive cross-functional and cross-border cooperation amongst regulators/supervisors is required.  BAFT maintains that regulators/supervisors should internalize innovation by developing or acquiring tech-savvy staff, leveraging suptech, and organizing innovation hubs, accelerators, and regulatory sandboxes.

BAFT also offers comments and supplementary information for the consideration of the BCBS and other authorities active in the development of a rational framework for innovation in financial services.  BAFT encourages government to construct a framework that is holistic, balanced, and future-proofed.  We stress the importance of fully understanding the risks associated with fintech before taking legislative or regulatory action.  BAFT reiterates that legislation and regulation governing banking should treat the same activities and risks in the same manner and be principles-based.  

This document may be found in our Library of documents under Comment Letters titled “BAFT Response to BCBS Consultation on Fintech

Please direct questions and comments regarding the response to Samantha Pelosi, SVP Payments and Innovation at spelosi@baft.org

If you have difficulty accessing the document, please contact Shawn Haynes, Sr. Director Operations at shaynes@baft.org