The financial regulatory ecosystem continues to be buffeted by challenges from emerging technologies like stablecoins, cryptocurrencies, and central bank digital currencies (CBDC). New roles are being imposed on regulators for maintaining financial stability. Howard Davies, chairman of the NatWest Group, shared his thoughts during our conversation at The Future of Finance Summit 2023 in Bangkok, Thailand. He is also former chairman of the UK Financial Services Authority and deputy governor of the Bank of England.
Here are some other key takeaways from our discussion:
● Regulatory Fragmentation: A lack of cooperation among regulators worldwide has led to a fragmented global financial sector.
● Financial Stability and Consumer Protection: Davies stresses the importance of regulators prioritizing financial stability and consumer protection. As new models and technologies enter the financial space, ensuring the safety of the financial system and protecting consumers become crucial objectives for regulators.
● Balancing Regulation and Innovation: Finding the right balance between regulation and innovation is a critical aspect. Overregulation could stifle the growth and development of transformative technologies in the financial sector. Regulators need to carefully navigate this balance to foster innovation while maintaining a stable financial environment.