Reflections on the Regulatory Approach to E-Finance

BIS Papers Nº7 Electronic Finance: A new perspective and challenges

8 Pages Posted: 9 Jan 2018

Date Written: November 1, 2001

Abstract

In the last 20 years, the financial services industry has witnessed dramatic changes, largely driven by globalisation, deregulation and consolidation. Technological advances helped make globalisation and consolidation feasible and encouraged deregulation. More recently, IT has accelerated the process, reinforcing some of these trends, particularly globalisation and deregulation, as well as facilitating the development of e-finance.

In the first part of this paper, attention will be focused on the interaction between the recent trends that have been shaping the way financial services are provided worldwide and the advent of IT. The second part focuses on the regulatory challenges posed by IT to financial services. First, we discuss why regulation of financial markets continues to be necessary in spite of the changes in the financial structure brought about by technology, and what sort of approach to regulation is better suited to this new environment, particularly in consumer and investor protection and promotion of competition. Secondly, we discuss in more detail the challenges posed for the traditional regulatory approach to reducing systemic risk. Thirdly, we comment on a supervisory model that seems to fit better an ever more complex financial structure.

Keywords: International Finance, Banks

JEL Classification: G15, O33

Suggested Citation

Nieto, Maria J., Reflections on the Regulatory Approach to E-Finance (November 1, 2001). BIS Papers Nº7 Electronic Finance: A new perspective and challenges. Available at SSRN: https://ssrn.com/abstract=3096945 or http://dx.doi.org/10.2139/ssrn.3096945

Maria J. Nieto (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

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