Bank for International Settlements setting up Singapore innovation hub

Singapore

THE Bank for International Settlements (BIS) has picked Singapore as one of three sites where they will set up its first wave of innovation hub centres.

In an announcement on Sunday, the BIS said the hubs will identify and develop deep insights into critical trends in central banking technology; develop public goods in the technology space to improve the global financial system; and serve as a focal point for a network of central bank experts on innovation.

In addition to the Republic, BIS will also open innovation hubs in Basel, Switzerland and Hong Kong, followed by centres in the Americas and Europe in a second phase of implementation.

Chairman of the BIS board of directors Jens Weidmann said: "The IT revolution knows no borders and therefore has repercussions in multiple locations simultaneously.

"The establishment of the BIS innovation hub will enable central banks to extend their existing collaboration with a view to identifying relevant trends in technology, supporting these developments where this is consistent with their mandate, and keeping abreast of regulatory requirements with the objective of safeguarding financial stability."

There are significant economies of scale in such an endeavour, and the BIS is the ideal vehicle to realise them, Mr Weidmann added.

The BIS is an international organisation that serves central banks and other financial authorities to build a greater collective understanding of the world economy, foster international cooperation among them and support them in the pursuit of global monetary and financial stability.

Under the first phase of the initiative to foster collaboration within the central banking community on fintech issues, the hub centres will be set up in Basel and Hong Kong, making use of existing BIS facilities there. Singapore will host the BIS's third hub centre.

The Monetary Authority of Singapore (MAS) said in a statement on Sunday that the move by the BIS to set up a centre in Singapore reflects the city-state's position as a leading international fintech centre, with an advanced fintech ecosystem.

In collaboration with other central banks, the Singapore hub centre strives to develop the technology architecture for an efficient and secure digital global financial system and facilitate experiments in the application of technology to enhance financial regulation.

Ravi Menon, MAS managing director said: "A wave of technological innovations is sweeping across financial services. To fully harness the benefits of these innovations while ensuring the resilience of the financial sector, central banks must also innovate - to modernise the technology infrastructure and regulatory arrangements that underpin digital finance and the digital economy.

"The BIS innovation hub initiative provides a compelling platform for central banks to collaborate in this effort, so as to maximise the benefits of cross-border digital connectivity and commerce. MAS looks forward to working closely with the BIS and the global central banking community to advance this visionary and important agenda."