Analysis: Jack Ma Needs a Refresher on How Financial Regulation Works

Caixin Global | Oct 26, 2020 at 8:47 PM
  • On Saturday, actual controller of Ant Group Co. Ltd. Jack Ma sparked debate among financial professionals by criticizing the industry for hampering innovation in the name of preventing risks.
  • For many years, the company has not been subject to the same capital adequacy and leverage requirements as traditional financial institutions, and it has launched businesses that traditional financial institutions are not allowed to.
  • As the digital finance models used by Ant Group and Tencent Holdings Ltd. have not been included in those risk measurement standards, oversight based on the Basel Accords may not be a good match.