The central bank seeks to strike a balance between oversight and innovation
According to the monetary news, quoting the public relations of the Central Bank, the Deputy Minister of New Technologies of the Central Bank said this morning at the International Management Conference held by Allameh Tabatabai University: creating a balance between efficiency and competition on the one hand and maintaining financial stability and supervision On the other hand, it is a challenge that we always face in the space of innovation.
Referring to the experience of the world in this challenge, Mehran Moharramian added: “During the years leading up to 2008, the general approach was to keep central banks as far away from supervision and regulation as possible so that there is room for innovation and regulation of relations with actors.” But the result of that approach was a crisis as large as the 2008 crisis, which led to the design and development of the Basel 3 standard, the spirit of which was to restore oversight with new approaches.
The Deputy Minister of New Technologies of the Central Bank continued: “We in Iran are no exception to this rule and establishing a balance between supervision and the necessary space for innovation is one of the important challenges we face; In fact, although we are constantly criticized by proponents of innovation on the one hand and regulators on the other, the reality is that we at the central bank are concerned in both areas; It is important for us to create appropriate and necessary spaces for innovation in services and to maintain the supervisory position of the Central Bank in order to prevent damage to financial stability.
Referring to the numerous measures taken by the Central Bank in the field of innovation and the creation of the necessary space for it, he said: , The development of open banking regulations and assistance in setting up neo-banks are among the measures that have been taken and are being followed up in the Central Bank.
The Deputy Minister of New Technologies of the Central Bank added: “One of the measures that we are seriously looking for and has a very good effect in facilitating and accelerating the regulatory role for innovative activities, is the launch of the regulatory sandbox.” By launching this sandbox, we seek to enable limited activity for innovative projects in a specific environment so that both project owners in a real operational environment realize their strengths and weaknesses, and the regulator is able to examine the various risks of the project. Have.