Prudential Regulation Policy Responses to Financial Technological Innovations: The Future for Banks and Crypto-Finance?

Iris H. Y. Chiu ()
Additional contact information
Iris H. Y. Chiu: UCL Faculty of Law

Chapter Chapter 4 in Commercial Banking in Transition, 2024, pp 59-85 from Palgrave Macmillan

Abstract: Abstract This chapter discusses the rise of crypto-assets in their potential interfaces with the banking business and the challenges posed by prudential regulatory policy. Prudential regulatory policy has after the global financial crisis become more conservative but also dependent on recognised characteristics of mainstream financial assets in order to map financial risks. Existing prudential regulation does not optimally accommodate crypto-instruments and the Basel Committee has adopted risk-averse approaches to banks’ direct exposures. The chapter suggests there are new business opportunities for banks that can be explored, and the engagement between crypto and conventional finance cannot be prevented. In particular, the chapter discusses how crypto-collateralised secured lending can be supported by legal and regulatory clarifications and reform.

Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-45289-5_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9783031452895

DOI: 10.1007/978-3-031-45289-5_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().