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,’.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now
We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the The Paypers website, they in no way represent the opinion of The Paypers.