In a recent International Banker article, journalist Joseph Moss examines the rise of supervisory technology (SupTech) and its growing role in financial oversight. As regulatory bodies confront a faster, more fragmented financial system — and reckon with past supervisory failures — SupTech is emerging as a critical tool for more agile, data-driven supervision.
SupTech differs from its cousin RegTech by flipping the lens: it empowers supervisors, not banks, to streamline data collection, identify emerging threats, and cut through reporting delays. A recent study from the Bank for International Settlements found that these tools are doing more than improving process — they're changing behavior. The research, conducted at the Central Bank of Brazil, found that banks targeted by SupTech-driven scrutiny disclosed more non-performing loans and tightened lending to higher-risk borrowers, all without systemic economic fallout.
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