The new framework, which will start taking effect in January 2023 with full implementation by January 2025, will extend the proportionality of regulatory requirements currently used for conglomerates of financial institutions to include financial conglomerates led by payment institutions.
The calculation of regulatory capital will disregard assets that have little or no value for payment institutions' functioning, said the central bank, noting that this will ensure companies have a greater capacity to absorb unexpected losses.
The changes aim to preserve easier entry for new competitors in the payments sector, ‘to increase competition in the system and financial inclusion,’.
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