FSB: No Systemic Risk from Fintech Now but Counsels Future Vigilance
International regulators say it's too soon for fintech such as blockchain or robo-advisors to pose a threat to financial stability, but warns that caution is still necessary.
Current systemic stability implications are few, the FSB says, but contagion effects could grow in the future.
The Financial Stability Board (FSB) released a report into financial stability issues arising from the growth in fintech on June 27, examining fintech applications by sector, and more specific developments, such as distributed-ledger technology (DLT) and robo-advice.
Given a lack of maturity in most fintech models, the report suggests, most developments are too embryonic to pose any sustained threat to financial stability at present, but microfinancial risks could be on the rise.
“Fintech
More on Trading Tools
Waters Wavelength
Wavelength Podcast Episode 151: Examining the MEMX Announcement
Liquidnet's Adam Sussman joins to discuss the Members Exchange: Why do we need another trading venue, what are the tech challenges, who will be the CEO?
Subscribe to Weekly Wrap emails
Back to Top