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Technology is transforming the financial system she says. And UK regulators must have the powers and tools to respond flexibly to the opportunities and risks it brings.
Saporta also outlines the PRA’s approach to liquidity policy now the international banking reforms are in place. She set out three priority issues for implementation: cashflow mismatch risk, the Net Stable Funding Ratio (NSFR) and asset encumbrance.
But the biggest change to finance is coming from technology. This poses many opportunities as well as risks. It is crucial that post Brexit, UK regulators have the powers and tools to respond to them, as well as challenges from climate change and demographics, amongst others, flexibly in support of a vibrant and resilient UK financial system.