Wrestling like most financial regulators with the growing role of financial technology, the Basel Committee has released a comprehensive consultation laying out all of its in-depth research in this sector and a set of “observations” that then lead to policy recommendations. The report encompasses both retail fintech and wholesale products such as distributed-ledger technology (DLT), detailing for each product or service the emerging competitive landscape and how it intersects with key supervisory concerns such as financial stability, consumer protection, privacy, and AML compliance. Based on all of this analysis, Basel concludes that the basic business model of banking faces a significant strategic threat.
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