For instance, one would still need a bank to warehouse the liquidity risk as no other entity can create credit and money. Put another way, any fintech entity that provides such liquidity services is effectively functioning as a bank and 1/4  BIS central bankers' speeches  therefore should be subjected to the same legal/regulatory/supervisory regime that a bank is subjected to.
This is one reason why in almost all countries, entities other than banks are not allowed to directly deal in deposit or deposit-like money. 7. This understanding of the limitations of technology prepares us better to manage the change that fintech is causing in banking and finance. It would also enable an effective approach to regulating fintech and the fast-mutating financial system. 8.