The regulation of large platforms
In recent years, the entry of new players in the financial sector (fintechs and bigtechs) has triggered regulatory and supervisory imbalances, as these platforms are not subject to the same rules and controls as financial institutions. “We have always advocated that the same activity that generates the same type of risk should be subject to the same regulation. In general, banking regulation tends to be bank-based, i.e, it is applied due to the fact of being a bank, while other players, however, are only subject, at best, to specific activity-based regulations, even if they combine several significant activities,” explains Fernández de Lis. This is why BBVA believes it is necessary to move towards a more level playing field.
Fernández de Lis believes that the debate on the regulation of these new players in 2023 should focus on two aspects. On the one hand, the difference in terms of supervision should be reduced, as although some regulations are the same, banks have a very powerful supervisor – the ECB – which is in charge of ensuring that the regulation is complied with, and other entities do not. On the other hand, progress must be made in the design of new regulatory structures for those non-bank players that, due to their size and mix of activities, require some type of regulation and supervision at a consolidated level.” Finally, beyond financial regulation, this year will be key for the implementation of the new European Digital Markets regulation, which will ensure a fairer competitive environment for large digital platforms.