International Monetary Fund: Banks must develop or face the risk of "default"

14:11 - 16/07/2019



Information / Baghdad ..
A new study by the International Monetary Fund (IMF) shows that banks have to develop or face the risk of default, as major technology firms shake the financial system.


In a paper entitled "The Rise of Digital Money," the IMF explained that the most common forms of money today - cash and bank deposits - "will face stiff competition and may be bypassed" and that policymakers should prepare for some turbulence in the banking landscape.


But banks are unlikely to disappear as they face increasing threats from major technology companies and emerging phoenix companies, and some will undoubtedly be left behind, others will develop but have to do so very quickly.


He added that traditional banks have certain advantages over competitors from technology companies such as the ability to raise deposit rates, but the major technology companies and startups in the phenetic is also "expert in providing convenient, attractive, low cost and reliable services to a large network of customers.


The research was published at a time when central bankers and policymakers are debating the role that technology and currency companies will play in the banking system and payments, with Facebook planning to release its default currency Libra.




https://www.almaalomah.com/2019/07/16/418076/