ResTech: Innovative Technologies for Crisis Resolution

Loiacono, Giuseppe; Mazzullo, Alessandro; Rulli, Edoardo

doi:10.2139/ssrn.3598527

Cited by 3 publications

(3 citation statements)

References 26 publications

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“…Keywords and eligibility. "RegTech" and "SupTech" were identified as the natural keywords, but we also included "technolog* 1 " plus "financ* regulat* or supervis*", given that the terms "RegTech" (Regulatory Technology; Arner et al, 2017a) and "SupTech" ("Supervisory Technology"; Loiacono & Rulli, 2021) are themselves the contraction of two other terms. We consequently organised our keywords into strings (Fig.…”

Section: Data Collectionmentioning

confidence: 99%

“…Another series of works look at how new technologies can help to eliminate the vulnerabilities in climate risk management processes, showing that climate change data can impact on company exposure and slotting transparency into regulatory reporting at financial institutions (Miglionico, 2022). Other papers are concerned with RegTech in crisis resolution (ResTech), as its application in this area can support resolution authorities in their work to develop resolution plans and the resolving of financial firms (Loiacono & Rulli, 2021). Others still evaluated the ramifications of RegTech in the light of specific regulations, such as the Basel III regulatory framework (Huang, 2021).…”

Section: Phase 4 2021-ongoing -Towards Focused Regtech Literaturementioning

confidence: 99%

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RegTech in public and private sectors: the nexus between data, technology and regulation

Grassi

Lanfranchi

2022

J. Ind. Bus. Econ.

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Higher regulatory compliance requirements, fast and continuous changes in regulations and high digital dynamics in the financial markets are powering RegTech (regulatory technology), defined as technology‐enabled innovation applied to the world of regulation, compliance, risk management, reporting and supervision. This work builds on a systematic literature review and a bibliometric analysis of the literature on RegTech, its influential papers and authors, its main areas of research, its past and its future. The resulting multi-dimensional framework bridges across four main dimensions, starting with regulation and technology, where one or more regulations, not necessarily financial ones, are addressed with the support of technologies (e.g. artificial intelligence, DLT, blockchain, smart contracts, API). Data play a central role, as sharing them enables data ecosystems, where additional value can be attained by each market participant, while data automation and machine-readable regulations empower regulators to pull data directly from the banks’ systems and combine these data with data obtained directly from customers or other external sources. Several applications emerge, both for regulated entities, covering matters of compliance, monitoring, risk management, reporting and operations, as well as for authorities, which can leverage on RegTech (SupTech) solutions to make policies, to undertake their authorising, supervising and enforcement operations, for monitoring and controlling purposes, and even to issue fines automatically. As a consequence, stakeholders can reap a series of benefits, such as higher efficiency and effectiveness, accuracy, transparency and lower compliance costs but also risks, such as cyber risk, algorithmic biases, and dehumanization.

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Section: Data Collectionmentioning

confidence: 99%

Section: Phase 4 2021-ongoing -Towards Focused Regtech Literaturementioning

confidence: 99%

RegTech in public and private sectors: the nexus between data, technology and regulation

Grassi

Lanfranchi

2022

J. Ind. Bus. Econ.

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“…The concept of ResTech is new. Loiacono et al (Loiacono, Mazzullo, & Rulli, 2020) argue in their paper that ResTech could be part of the solution to innovative technologies for crisis resolution.…”

Section: How Could Big Data and Ai Be The Solution For Tbtf Institutions?mentioning

confidence: 99%

Big data and AI: a potential solution to end the conundrum of too big to fail financial institutions?

Mitrache

2021

Proceedings of the International Conference on Business Excellence

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The “too big to fail” institutions are a widespread concern, especially in the financial world. Their failure can create severe economic downturns and social turmoil. In past bank failures, governments intervened with public funds to save such institutions from collapse to avoid economic downturns. Since, measures have been put in place to prevent bank failures and limit the utilisation of public funds. However, failures cannot be prevented and risks of affecting the economy are always present in the case of too big to fail institutions. This article explores the possibilities offered by recent advancements in the fields of Big Data and Artificial Intelligence, widely implemented by the financial institutions themselves, as tools to be used by authorities in ending the too big to fail conundrum. The adequate implementation of these technological capabilities will contribute to the areas already targeted by governments – reducing the probability of failure and providing tools to limit negative externalities and spillover effects – and will also introduce a new capability that could address the too big to fail matter. Since financial institutions are, in their essence, data hubs, now in a digitalised format, the possibilities to automate tasks and provide insight for decisions should address the issue. The actual transfer of assets and liabilities to institutions that can carry on the activity, currently need years to be handle:. Big Data and Artificial Intelligence technologies could make such operations a matter of hours or days.

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ResTech: innovative technologies for crisis resolution

Loiacono¹,

Rulli

2021

J Bank Regul

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The use of financial technologies (FinTech) by financial market participants fostered a discussion among public authorities on the use technologies for regulatory (RegTech) and supervisory (SupTech) purposes. This paper discusses the application of innovative technologies to crisis resolution (ResTech) and sets out its potential scope of application. ResTech is the application of technologies: i) to support the work of resolution authorities in developing resolution plans and in resolving financial firms; and ii) to allow financial firms to achieve regulatory compliance and better risk management in a more effective and automated manner. This paper also argues that the features and market dynamics of resolution differ from those of RegTech and SupTech: there is little market incentive for the private sector to foster innovation in the area of crisis resolution. The lack of private sector incentives to invest in R&D on how to resolve a firm’s crisis leaves the task to resolution authorities. In addition, resolution-technologies may support the identification of optimal liquidation strategy for small and medium-sized financial firms, by ensuring the maximisation of creditors’ proceeds out of the insolvency estate.

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ResTech: Innovative Technologies for Crisis Resolution

Cited by 3 publications

References 26 publications

RegTech in public and private sectors: the nexus between data, technology and regulation

RegTech in public and private sectors: the nexus between data, technology and regulation

Big data and AI: a potential solution to end the conundrum of too big to fail financial institutions?

ResTech: innovative technologies for crisis resolution

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