IDEAS home Printed from https://ideas.repec.org/p/sec/report/0488.html
   My bibliography  Save this paper

Potential Impact of Financial Innovation on Financial Services and Monetary Policy

Author

Listed:
  • Marek Dabrowski

Abstract

The recent wave of financial innovation, particularly innovation related to the application of information and communication technologies, poses a serious challenge to the financial industry’s business model in both its banking and non-banking components. It has already revolutionised financial services and, most likely, will continue to do so in the future. If not responded to adequately and timely by regulators, it may create new risks to financial stability, as occurred before the global financial crisis of 2007-2009. However, financial innovation will not seriously affect the process of monetary policymaking and is unlikely to undermine the ability of central banks to perform their price stability mission. The recent wave of financial innovation, particularly innovation related to the application of information and communication technologies, poses a serious challenge to the financial industry’s business model in both its banking and non-banking components. It has already revolutionised financial services and, most likely, will continue to do so in the future. If not responded to adequately and timely by regulators, it may create new risks to financial stability, as occurred before the global financial crisis of 2007-2009. However, financial innovation will not seriously affect the process of monetary policymaking and is unlikely to undermine the ability of central banks to perform their price stability mission.

Suggested Citation

  • Marek Dabrowski, 2017. "Potential Impact of Financial Innovation on Financial Services and Monetary Policy," CASE Reports 0488, CASE-Center for Social and Economic Research.
    • Handle: RePEc:sec:report:0488
    as

    Download full text from publisher

    File URL: https://case-research.eu/uploads/zalacznik/2017-07-18/Potential_impact_of_financial_innovation_on_financial_services_and_monetary_policy.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nizar, Muhammad Afdi, 2019. "Baik-Buruk Inovasi Keuangan [Financial Innovation : The Good and the Bad Sides]," MPRA Paper 97921, University Library of Munich, Germany.
    2. Žarko Đorić, 2020. "Financial Innovations In Modern Financial System – Analytical Basics And Practical Aspects," Ekonomske ideje i praksa, Faculty of Economics and Business, University of Belgrade, issue 38, pages 81-107, September.
    3. Keliuotytė-Staniulėnienė Greta & Smolskytė Gintarė, 2019. "Possibilities for Financial Technology Sector Development and its Impact on Banking Sector Profitability in Lithuania," Economics and Culture, Sciendo, vol. 16(1), pages 12-23, June.
    4. Tiriongo, Samuel & Wamalwa, Peter, 2020. "The effect of mobile money on banking sector stability in Kenya," KBA Centre for Research on Financial Markets and Policy Working Paper Series 43, Kenya Bankers Association (KBA).
    5. Marek Dabrowski & Lukasz Janikowski, 2018. "Virtual currencies and their potential impact on financial markets and monetary policy," CASE Reports 0495, CASE-Center for Social and Economic Research.

    More about this item

    Keywords

    monetary policy; financial innovation; electronic money;
    All these keywords.

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sec:report:0488. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anna Budzynska (email available below). General contact details of provider: https://edirc.repec.org/data/caseepl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.