The European Banking Authority (EBA) published its response to the European Commission’s consultation on a new Digital Finance Strategy for Europe.
The EBA highlights in its response the importance of technological neutrality in regulatory and supervisory approaches as a mean to facilitate innovation in the financial sector and support scaling cross-border. This requires comprehensive and ongoing monitoring of the application of innovative technologies to enable the timely identification of opportunities and risks and adjustments as appropriate to regulatory and supervisory approaches.
In this context, the EBA supports proposed enhancements to coordination mechanisms, such as the EBA’s FinTech Knowledge Hub and the European Forum for Innovation Facilitators (EFIF), to facilitate a stronger dialogue between industry and regulatory and supervisory authorities on innovation-related issues.