Technology and Shadow Banking – Banking Lab

25 November 2021

A new Banking Lab session was held last 26 October, focused this time on the growing presence of shadow financing systems due to the entry of Big Tech into financial services. The session, “Technology and Shadow Banking: Opportunities and challenges for the regulated banking system”, was articulated as a discussion between Mr José María Roldán, President of the Spanish Banking Association, and Mr Fernando Restoy, President of the Financial Stability Institute. The event was moderated by Mr David Martín, Partner and Head of Regulatory Strategy at Monitor Deloitte.

During the event, the speakers discussed the competitive, regulatory and financial stability challenges presented by the arrival of new technology-based financial service providers. They highlighted the importance of intensifying supervision to control risks and reduce existing regulatory imbalances between traditional banks and these new players. Additionally, they emphasised the need for higher bodies to analyse potential risks to financial stability.