The policy enabled a liquidity facility by the originator or a third party, to help smoothen the timing differences faced by the SPV and was subject to certain conditions to ensure that the liquidity support was only temporary and got invoked to meet cash flow mismatches.
And third, by digitalising the financial system, FinTech limits space for the ‘shadow economy’. Due to increased transparency, digitalisation allows authorities to curb illegal economic activities more effectively. With the amount of money laundered globally, ranging from USD 800 billion to USD 2 trillion on an annual basis, financial innovations can offer substantial gains.