IDEAS home Printed from https://ideas.repec.org/p/ris/adbiwp/1016.html
   My bibliography  Save this paper

Regulating Fintech: Objectives, Principles, and Practices

Author

Listed:
  • Marlene Amstad

    (Asian Development Bank Institute)

Abstract

We provide an overview and key elements on the ongoing debate of whether and how to regulate fintech. We review three objectives of financial regulation (investor protection, market integrity, safeguarding financial stability) in the context of recent fintech developments, cover three guiding principles many regulators follow (legal certainty, technology neutrality, and proportionality), and end with a suggested synopsis of current fintech regulatory practices: “wait-and-see”, “same risk, same rules” (“duck typing”), or “new functionality, new rules” (“coding”).

Suggested Citation

  • Marlene Amstad, 2019. "Regulating Fintech: Objectives, Principles, and Practices," ADBI Working Papers 1016, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:1016
    as

    Download full text from publisher

    File URL: https://www.adb.org/sites/default/files/publication/533791/adbi-wp1016.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stijn Claessens & Jon Frost & Grant Turner & Feng Zhu, 2018. "Fintech credit markets around the world: size, drivers and policy issues," BIS Quarterly Review, Bank for International Settlements, September.
    2. Armour, John & Awrey, Dan & Davies, Paul & Enriques, Luca & Gordon, Jeffrey N. & Mayer, Colin & Payne, Jennifer, 2016. "Principles of Financial Regulation," OUP Catalogue, Oxford University Press, number 9780198786474, Decembrie.
    3. Lin William Cong & Zhiguo He, 2019. "Blockchain Disruption and Smart Contracts," The Review of Financial Studies, Society for Financial Studies, vol. 32(5), pages 1754-1797.
    4. Antoine Bouveret, 2018. "Cyber Risk for the Financial Sector: A Framework for Quantitative Assessment," IMF Working Papers 2018/143, International Monetary Fund.
    5. Xavier Freixas & Jean-Charles Rochet, 2008. "Microeconomics of Banking, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262062704, December.
    6. Athey, Susan & Catalini, Christian & Tucker, Catherin E., 2017. "The Digital Privacy Paradox: Small Money, Small Costs, Small Talk," Research Papers 3498, Stanford University, Graduate School of Business.
    7. Michel Rauchs & Apolline Blandin & Kristina Klein & Gina Pieters & Martino Recanatini & Bryan Zhang, 2018. "2nd Global Cryptoasset Benchmarking Study," Cambridge Centre for Alternative Finance Reports 201812-sgcbs, Cambridge Centre for Alternative Finance, Cambridge Judge Business School, University of Cambridge.
    8. Michel Rauchs & Andrew Glidden & Brian Gordon & Gina Pieters & Martino Recanatini & Francois Rostand & Kathryn Vagneur & Bryan Zhang, 2018. "Distributed Ledger Technology Systems. A Conceptual Framework," Cambridge Centre for Alternative Finance Reports 201810-dlts, Cambridge Centre for Alternative Finance, Cambridge Judge Business School, University of Cambridge.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Anwer, Zaheer & Khan, Muhammad Arif & Hassan, M. Kabir & Singh, Manjeet Kaur Harnek, 2024. "Assessing dynamic co-movement of news based uncertainty indices and distance-to -default of global FinTech firms," Research in International Business and Finance, Elsevier, vol. 71(C).
    2. Treu, Johannes, 2022. "FinTech, General Purpose Technology und Wohlfahrt," IU Discussion Papers - Business & Management 5 (Juni 2022), IU International University of Applied Sciences.
    3. Aleksandr P. Alekseenko, 2022. "Privacy, Data Protection, and Public Interest Considerations for Fintech," Springer Books, in: Hung-Yi Chen & Pawee Jenweeranon & Nafis Alam (ed.), Global Perspectives in FinTech, chapter 0, pages 25-49, Springer.
    4. Metzger, Martina & Were, Maureen & Pédussel Wu, Jennifer, 2022. "Financial inclusion, mobile money and regulatory architecture," IPE Working Papers 202/2022, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    5. Johannes Treu, 2024. "Moving Beyond Silo Thinking: A Deductive Analysis of Financial Literacy, Financial Inclusion, FinTech, and the UN Sustainable Development Goals," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 16(2), pages 1-1, February.
    6. Carlo Gola & Andrea Caponera, 2019. "Policy issues on crypto-assets," LIUC Papers in Economics 2019-7, Cattaneo University (LIUC).
    7. Sulehri, Fiaz Ahmad & Audi, Marc & Ashraf, Muhammad Saleem & Azam, Habiba & Bukhari, Syeda Ambreen Fatima & Ali, Amjad, 2024. "Empirical Insights into Financial Integration: Fintech Credit and Regulatory Dynamics," MPRA Paper 121776, University Library of Munich, Germany.
    8. Marius FOTSO KAMGA & Emmanuel BANKOLE, 2023. "gouvernance financière des cryptomonnaies en Afrique," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 14(1), pages 83-98, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ed Saiedi & Anders Broström & Felipe Ruiz, 2021. "Global drivers of cryptocurrency infrastructure adoption," Small Business Economics, Springer, vol. 57(1), pages 353-406, June.
    2. Emanuele Borgonovo & Stefano Caselli & Alessandra Cillo & Donato Masciandaro, 2018. "Between Cash, Deposit And Bitcoin: Would We Like A Central Bank Digital Currency? Money Demand And Experimental Economics," BAFFI CAREFIN Working Papers 1875, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    3. Emanuele Borgonovo & Stefano Caselli & Alessandra Cillo & Donato Masciandaro & Giovanno Rabitti, 2018. "Cryptocurrencies, central bank digital cash, traditional money: does privacy matter?," BAFFI CAREFIN Working Papers 1895, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    4. Donato Masciandaro, 2018. "Central Bank Digital Cash and Cryptocurrencies: Insights from a New Baumol–Friedman Demand for Money," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 51(4), pages 540-550, December.
    5. Zanin, Luca, 2020. "Combining multiple probability predictions in the presence of class imbalance to discriminate between potential bad and good borrowers in the peer-to-peer lending market," Journal of Behavioral and Experimental Finance, Elsevier, vol. 25(C).
    6. Iñaki Aldasoro & Leonardo Gambacorta & Paolo Giudici & Thomas Leach, 2023. "Operational and Cyber Risks in the Financial Sector," International Journal of Central Banking, International Journal of Central Banking, vol. 19(5), pages 340-402, December.
    7. Jiao Wang & Lima Zhao & Arnd Huchzermeier, 2021. "Operations‐Finance Interface in Risk Management: Research Evolution and Opportunities," Production and Operations Management, Production and Operations Management Society, vol. 30(2), pages 355-389, February.
    8. Mikel Bedayo & Raquel Vegas & Gabriel Jiménez & José-Luis Peydró, 2020. "Screening and Loan Origination Time: Lending Standards, Loan Defaults and Bank Failures," Working Papers 1215, Barcelona School of Economics.
    9. Ilya Ivaninskiy & Irina Ivashkovskaya & Joseph A. McCahery, 2023. "Does digitalization mitigate or intensify the principal-agent conflict in a firm?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(3), pages 695-725, September.
    10. Armstrong, Christopher & Nicoletti, Allison & Zhou, Frank S., 2022. "Executive stock options and systemic risk," Journal of Financial Economics, Elsevier, vol. 146(1), pages 256-276.
    11. Johannes Bubeck & Angela Maddaloni & José‐Luis Peydró, 2020. "Negative Monetary Policy Rates and Systemic Banks' Risk‐Taking: Evidence from the Euro Area Securities Register," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 52(S1), pages 197-231, October.
    12. Delis, Manthos D. & Hasan, Iftekhar & Tsionas, Efthymios G., 2015. "Firms' risk endogenous to strategic management choices," Bank of Finland Research Discussion Papers 16/2015, Bank of Finland.
    13. Joseph Bitar, 2022. "A note on reserve requirements and banks' liquidity," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 4837-4852, October.
    14. David VanHoose, 2013. "Implications of Shifting Retail Market Shares for Loan Monitoring in a Dominant-Bank Model," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(3), pages 291-316, July.
    15. Kollmann, Robert & Enders, Zeno & Müller, Gernot J., 2011. "Global banking and international business cycles," European Economic Review, Elsevier, vol. 55(3), pages 407-426, April.
    16. José Ramón Martínez Resano, 2022. "Digital resilience and financial stability. The quest for policy tools in the financial sector," Financial Stability Review, Banco de España, issue Autumn.
    17. Dalla, Eleni, 2023. "Asymmetries in banking conduct: A Cournot - Bertrand model," Economics Letters, Elsevier, vol. 233(C).
    18. Lin William Cong & Zhiguo He & Jiasun Li & Wei Jiang, 2021. "Decentralized Mining in Centralized Pools [Concentrating on the fall of the labor share]," The Review of Financial Studies, Society for Financial Studies, vol. 34(3), pages 1191-1235.
    19. Magdalena Correo Henao & Daniela Amaya Castro & Mario Andrés Ospina Ramírez & Federico Suárez Ricaurte, 2021. "Pobreza y desigualdad prospectiva 2030. XXI jornadas de derecho constitucional constitucionalismo en ransformación. Prospectiva 2030," Books, Universidad Externado de Colombia, Facultad de Derecho, number 1298, May.
    20. Xiangyi Zhou & Zheng Pei & Botao Qin, 2021. "Assessing Market Competition in the Chinese Banking Industry Based on a Conjectural Variation Model," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(2), pages 73-98, March.

    More about this item

    Keywords

    fintech; financial technology; digital currency;
    All these keywords.

    JEL classification:

    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    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:ris:adbiwp:1016. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: ADB Institute (email available below). General contact details of provider: https://edirc.repec.org/data/adbinjp.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.