Financial Policy Committee speaks on balancing innovation and financial stability risk

Randall Kroszner – external member of the Financial Policy Committee – has delivered a speech on promoting innovation while guarding against financial stability risk at the 20th High-level meeting on financial stability and regulatory and supervisory priorities.

The speech outlined a /practical guide/ for supervisors and prudential authorities: understanding the innovation; identifying and assessing potential risks; and determining appropriate policy responses.

The meeting was jointly organised by the Arab Monetary Fund, the Basel Committee on Banking Supervision and the Financial Stability Institute of the Bank of International Settlements.