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🎙️ Let’s talk about the growing influence of Big Tech on Europe’s financial sector and why this matters.

Full report ; https://acpr.banque-france.fr/sites/default/files/medias/documents/20241014_article_big_techs_vf.pdf

Big tech companies are more involved in financial services than ever before. But, with this growing presence come risks. Imagine banks and other financial institutions becoming too dependent on their services—this could lead to operational fragmentation and potentially spread risks from Big Tech’s business failures into the financial system.

Here’s the catch: the regulatory framework hasn’t caught up to this new reality. So, what needs to happen? The document suggests tighter regulations, like better supervision of large, mixed activity groups, harmonized rules for non-bank loans, and even creating a prudential regime just for these tech giants.

Why does this matter? Because if we don’t address these risks, we could see disruptions not just in tech, but across the financial systems that we rely on every day.

If you found this discussion insightful, feel free to share it and join the conversation. What do you think about the intersection of Big Tech and finance? 🤔 Let me know in the comments!

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