The Systemic Risks and Regulation of BigTech - "Too Big(Tech) to Fail?"

Roland Bodi (), Peter Faykiss () and Adam Nyikes ()
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Roland Bodi: Magyar Nemzeti Bank
Peter Faykiss: Magyar Nemzeti Bank, Corvinus University of Budapest
Adam Nyikes: Magyar Nemzeti Bank

Financial and Economic Review, 2023, vol. 22, issue 1, 5-20

Abstract: When it comes to systemically important financial institutions, people usually think of banks, insurers or financial holding companies, but large technology firms (so-called BigTech) are increasingly part of this category. This paper examines regulatory approaches with which the systemic importance of BigTech firms in financial services could be addressed. According to the analysis, of the three regulatory frameworks identified in the literature ("restriction", "segregation", "inclusion"), when a balanced approach is used, the separation of financial and non-financial activities seems to be the most promising regulatory solution, as this model works best for taking account of the practical aspects of operation, regulation and supervision.

Keywords: BigTech; FinTech; systemic risk; financial stability; financial regulation (search for similar items in EconPapers)
JEL-codes: G18 G21 G23 G28 L41 L51 (search for similar items in EconPapers)
Date: 2023
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:mnb:finrev:v:22:y:2023:i:1:p:5-20

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