Authorities worldwide are facing new challenges in light of the unstoppable digitalisation of society and the economy, which in the case of finance is most clearly reflected in crypto-assets and cybersecurity. New competition for banks from technology companies and the strong growth of shadow banking in a context of exceptionally expansionary monetary policies are causes for concern worldwide. When the financial sector is discussed, it is common to think only of banks, even though their share of the sector is steadily declining. The environment in which they operate is highly favourable for new technology competitors, both due to rapid digitalisation and to regulatory and supervisory obligations that are far more lenient than those imposed on banks.
Appropriate regulation focused on the activity, rather than on the type of company carrying it out, not only helps to address the challenges of digital transformation; it also strengthens customer protection and the essential stability of the financial system. In addition, it improves the transparency and efficiency that authorities must have when setting their supervisory policy and insolvency rules in order to shape a competitive capital markets environment. Competition in any economic sector must take place on a level playing field among the different operators carrying out the same activity. Banks should not be subject to an additional regulatory burden simply because they are banks.
Banks adapt to the context. In the past, they have already provided ample evidence of their ability to adapt to complex scenarios, in which they have been able to bring out the best for the benefit of customers. They are used to competing, but on a level playing field, and this is not the case with large technology companies, which are free of the heavy regulatory and supervisory burden borne by banks.
José Luis Martínez Campuzano, spokesperson for the Spanish Banking Association
