Usa, CEO Jp Morgan: unfair competition from Big Tech, must be regulated

Share

07 April 2021 The global financial system is becoming much bigger than the banking system and for credit institutions - especially thanks to new technologies - new competitors are appearing on the market including "

and now

t" which, however, must not comply with the stringent rules to which the banking system is subject.

Jp Morgan CEO Jamie Dimon writes this in the annual

, asking companies that do "shadow banking", fintechs and all new players in the financial market to be subjected to

, also because their growth was "partially possible" thanks to the fact that they did not have to comply with the rules set for banks.

Those banks that have seen their regulation changed also to avoid new bankruptcies as in the 2008 crisis.

However, for Dimon, "the cost to the economy of having bankruptcy-proof banks may not be worth it".

In fact, for Dimon it is necessary to "calibrate how much liquidity and capital are required from banks to balance what you want in a regulated system, while maximizing the safety of the banks and the growth of the economy".

Dimon

, in his annual letter to shareholders he talked about the role of fintechs and the digitization of banking services.

"It is quite clear that, increasingly, many

, such as payments and some forms of deposits, are moving outside the banking system. In addition, the provision of loans in different forms - mortgages , student loans, leveraged, consumer credit and former credit cards - are also exiting the banking system. Neo banks and

are gaining share in consumer accounts. "

China sees the United States as a country in decline and in recent times the US has also experienced moments that seem to agree with the Chinese, Dimon argues in the annual letter sent to the bank's shareholders.

"Chinese leaders believe that America is in decline and they

think so not only because the size of their country will make them the

but also because they believe that their long-term skills and ideas and their strong leaderhsip have eclipsed America in many ways, "he writes.

"The Chinese see an America that is losing ground in

- a nation torn and paralyzed by politics as well as by social and racial inequalities - and a country unable to coordinate government policies (fiscal, monetary, industrial and regulatory) in a coherent way to achieve national goals ", continues Dimon, adding that" unfortunately, recently, there is a

in this ".