BIS Seek Stricter Rules for Fintechs, Credit Funds

The Bank for International Settlements (BIS) said last Sunday that funds that provide credit, shadow banks, and fintech firms should be covered by regulations introduced to address banking booms and busts.

The BIS said that macroprudential policy that requires banks to put up “countercyclical” buffers of capital should extend to asset management funds, not only to protect consumers and preserve the soundness of individual funds, but to protect funds from the actions of others. It added that fintechs and similar app-based financial services are likely to shift risk and thus will require a new arsenal of macroprudential instruments.

Source: Reuters