Institutional Arrangements for Fintech Regulation and Supervision
FinTech Notes, January 10, 2020
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- Institutional Arrangements for Fintech Regulation and Supervision
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Bibliographic details
- Authors: Charles R Taylor, Christopher Wilson, Eija Holttinen, Anastasiia Morozova
- Published: January 10, 2020
- Series: FinTech Notes
- DOI: https://doi.org/10.5089/9781513520308.063
Overview
- Fintech developments are reshaping mandates within existing regulatory architecture.
- Financial sector agencies commonly have multiple policy objectives, most often reflecting prudential, conduct, and financial stability objectives.
- Some financial sector agencies are also allocated responsibility for enhancing competition and innovation.
- Countries differ in how they balance promoting fintech development and regulating fintech, leading to variation in institutional emphasis and resource allocation.
- Conflicts of interest from dual roles (development vs. supervision) are sometimes managed through:
- legally established prioritization of objectives, or
- establishment of separate internal reporting lines for supervision and development.
Key findings
- Fintech is treated as a means to achieve multiple policy objectives with varying emphasis across countries, including:
- accelerating development,
- spurring financial inclusion,
- promoting competition and efficiency in the provision of financial services.
- Differences in emphasis affect institutional structures, including allocation of staff resources.
- Dual roles within agencies can create conflicts of interest that require explicit management mechanisms.
Policy and institutional implications
- Agencies with combined mandates need clear mechanisms to manage potential conflicts between promoting fintech and supervising it.
- Possible institutional arrangements include:
- legal prioritization of objectives to resolve conflicts of interest, and
- separate internal reporting lines to insulate supervision from development functions.
- Balancing innovation promotion and regulatory objectives may require resource reallocation and organizational design changes tailored to country-specific priorities.
Publication and bibliographic identifiers (selected)
- Authors: Charles R Taylor, Christopher Wilson, Eija Holttinen, Anastasiia Morozova
- Date: January 10, 2020
- Pages: 19
- Volume: 2019
- Issue: 002
- Series: FinTech Notes No. 2019/002
- DOI: https://doi.org/10.5089/9781513520308.063
- ISBN: 9781513520308
- ISSN: 2664-5912
Charles R Taylor, Christopher Wilson, Eija Holttinen, and Anastasiia Morozova. "Institutional Arrangements for Fintech Regulation and Supervision", FinTech Notes 2020, 002 (2019), accessed 9/21/2026, https://doi.org/10.5089/9781513520308.063.
Content in this bundle
- Executive Summary vii