Banking & Fintech Newsletter – Issue 33

EBA provides report to the EU Commission on non-bank lending

Following a Call for Advice request from the EU Commission, the EBA published its report in response to the non-bank lending request from the CfA on digital finance. The EBA addressed the lack of regulatory harmonisation over non-bank lenders (including FinTech and BigTech) providing lending and referred to the risks concerning (i) supervision; (ii) consumer protection; (iii) anti-money laundering and countering financing of terrorism (‘‘AML/CFT''); and (iv) macro and micro prudential risks.

In view of this, the EBA provided its proposals to mitigate risks by:

1. enhancing disclosure requirements in a manner which is fair, effective and well-suited for new forms of lending;