Emma RadmoreThe Financial Stability Board (FSB) has published two reports considering the financial stability implications from market developments in BigTech in finance, and from third party dependencies in cloud services.
The BigTech report examines the ripple effects from technology firms expanding their offerings into financial services products and services. It highlights considerations for policymakers, including the risk that the net effect may be domination of the market by the few rather than diversification and competition.
The cloud services report suggests that, while there aren’t immediate red flags from such arrangements, relevant authorities may want to consider their regulatory standards and supervisory practices for outsourcing arrangements and the extent to which they are able to share information, coordinate and cooperate with each other.