Managing The Promise And Risk Of Financial Innovation, Feder

Managing The Promise And Risk Of Financial Innovation, Federal Reserve Vice Chair For Supervision Michael S. Barr, At D.C. Fintech Week, Washington, D.C.

<p><span>Thank you, Chris, and thank you for the invitation to speak to you today about the opportunities and risks of innovation. For the purposes of our discussion today, I will be focusing on financial innovation supported by new technologies, or fintech.</span><a title="footnote 1" href="https://www.federalreserve.gov/newsevents/speech/barr20221012a.htm#fn1"><span>1</span></a><a name="f1"></a><span>&nbsp;In the fall of 2017, we managed to get Chris to accept an invitation to speak at a fintech conference in Ann Arbor, so it's about time that I returned the favor. Since then, we have continued to see major changes in technologies and the financial services and products they support. In looking over the materials for that conference, however, I'm struck by how the key themes have remained constant over, not only the last five years, but arguably for centuries. Financial innovation has always brought promise and risk, and the urgent need to get regulation right. In 1610, when Dutch merchants and bankers were otherwise busy creating global finance, a series of destabilizing bank runs also moved them to establish a ban on short-selling. Many of the issues we grapple with today are not as new as we think.</span></p>

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