KARACHI: State Bank of Pakistan Governor Ashraf Mahmood Wathra emphasised the importance of financial technology and cyber security in an increasingly technology dependent world during his opening address at the 10th meeting of Financial Stability Board (FSB) Regional Consultative Group for Asia (RCG Asia).
Wathra, who was the co-chair of the meeting hosted by Bank Negara Malaysia in Kuala Lumpur, reiterated FSB’s stance that the RCG Asia should expand cooperation and enhance active monitoring of financial technology developments to mitigate potential cyber risks while allowing financial technology to thrive.
In the meeting, members of FSB RCG for Asia discussed 2016 policy priorities: promoting full, consistent and timely implementation of the international financial reforms; finalising the design of the remaining post-crisis reforms; and addressing new risks and vulnerabilities. They next considered vulnerabilities in the global financial system, their potential impact on Asia and possible policy responses and regional financial stability issues.
In terms of new risks and vulnerabilities, members discussed the latest developments in financial technology and implications for financial stability. Related to this, they exchanged views on the latest trends and challenges in cyber security, supervisory approaches to enhance information technology risk management at financial institutions and market infrastructures, and the need for cooperation in cyber intelligence sharing, both domestically and cross-border.
FSB has been established to coordinate, at international level, the work of national financial authorities and international standard setting bodies and to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies in the interest of financial stability.