BSP prepares for digital regulation (Sabong News)
Author
Lee C. Chipongian
Date
MARCH 15 2022
The Bangko Sentral ng Pilipinas (BSP) said the Financial Sector Forum (FSF) is arming bank supervisors “for the digital age” of Supervisory and Regulatory Technology (SupTech/RegTech).
The BSP’s RegTech/SupTech solutions, which is the next generation of digital supervision tools and techniques, are aimed at enhancing the timeliness and quality of its risk-based decision making.
The inter-agency FSF “is committed to developing the next generation of bank supervisors equipped with knowledge and competence on SupTech/RegTech issues,” said BSP Governor and FSF chairman, Benjamin E. Diokno.
“We leverage innovative financial technologies to effectively and efficiently fulfill our mandates and promote a sustainable, inclusive, and resilient financial system,” he added.
The FSF recently conducted a webinar with the theme “Exponential Technologies and the Financial Sector” and tackled issues such as machine learning, digital technologies, distributed ledgers, blockchain, and other emerging technologies to enhance the SupTech/RegTech skills of bank supervisors.
The BSP said the FSF, through its Information Exchange Committee, will have more training programs in 2022 for in-depth understanding of technologies by financial sector supervisors.
The recent webinar was facilitated by the Carnegie Mellon University in Australia and participated by the BSP and other FSF members the Securities and Exchange Commission, the Insurance Commission, and the Philippine Deposit Insurance Corp.
In 2020, the BSP started its exploration of SupTech/RegTech such as Intelligent Detection of Atypicality (IDeA) and Advanced SupTech Engine for Risk-based Compliance (ASTERisC).
IDeA uses data science techniques to automate the process of detecting anomalies in supervisory data while ASTERisC is a unified SupTech/ RegTech solution that will automate regulatory.
Diokno has said that BSP will benefit from digitalization by digitizing reportorial requirements, develop digital platforms, and employ various artificial intelligence integration projects.
SupTech and Regtech are distinct subsectors of the fast-growing financial technology or fintech space that seek to improve how regulators carry out their supervisory and monitoring functions, while enabling regulated institutions to comply with regulatory requirements.
