McKinsey sees the global risk landscape shifting in three primary ways that are particularly relevant for banks. Firstly, the ‘digital revolution’ is increasing the quantity of potentially useful data and the speed at which decisions are made; secondly, technology innovations are accelerating the pace of change in competitive landscapes; and thirdly, hyper-connectivity is changing the speed of information transfer and changing the way that consumers think and act.1 These trends are important for regulators as well, making international collaboration particularly helpful, and perhaps even necessary.
A number of inter-regulatory collaboration initiatives were seen over 2019-2020. These initiatives include the development of the Global Financial Innovation Network (GFIN) which now consists of a group of 50 countries,2 in keeping with the Basel Committee on Banking Supervision’s (BCBS) suggestion that different supervisory functions should cooperate, domestically and internationally, to exchange information regarding topics such as prudential risk and the supervision of financial crime.3
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