Template-Type: ReDIF-Article 1.0

Author-Name: Roland Bodi
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: bodiro@mnb.hu

Author-Name: Peter Faykiss
Author-Workplace-Name: Magyar Nemzeti Bank, Corvinus University of Budapest
Author-Email: faykissp@mnb.hu

Author-Name: Adam Nyikes
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: nyikesa@mnb.hu


Title: The Systemic Risks and Regulation of BigTech - "Too Big(Tech) to Fail?"

Abstract: When it comes to systemically important financial institutions, people usually think
of banks, insurers or financial holding companies, but large technology firms (so-called
BigTech) are increasingly part of this category. This paper examines regulatory
approaches with which the systemic importance of BigTech firms in financial services
could be addressed. According to the analysis, of the three regulatory frameworks
identified in the literature ("restriction", "segregation", "inclusion"), when a balanced
approach is used, the separation of financial and non-financial activities seems
to be the most promising regulatory solution, as this model works best for taking
account of the practical aspects of operation, regulation and supervision.

Classification-JEL: G18, G21, G23, G28, L41, L51
Keywords: BigTech, FinTech, systemic risk, financial stability, financial regulation
Pages: 5-20
Volume: 22
Issue: 1
Year: 2023
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-22-1-ove1-bodi-faykiss-nyikes.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:22:y:2023:i:1:p:5-20