Global regulators 'to study fintech risks'

Global regulators will study for the first time whether "fintech" innovations could destabilise the broader financial system, the G20's Financial Stability Board says.

FSB Chairman Mark Carney said in a letter to central bankers and finance ministers from the Group of 20 economies meeting in Shanghai that assessing the systemic implications of fintech innovations would form part of the task force's core policy work this year.

It marks the first time that regulators at the global level are scrutinising fintech.

Carney, who is also Governor of the Bank of England, said the more difficult economic and financial conditions since the start of this year partly reflect weaker growth prospects.

Banking shares have come under pressure, reflecting concerns that lenders have to do more to adjust their long-term business models to a lower growth, lower nominal interest rate environment, Carney said.

"Recent market turbulence really serves to underline the importance of continued progress in building resilient financial institutions and markets," Carney said.