The Systemic Risks and Regulation of BigTech : “Too Big(Tech) to Fail?

When it comes to systemically important financial institutions, people usually think of banks, insurers or financial holding companies, but large technology firms (socalled BigTech) are increasingly part of this category. This paper examines regulatory approaches with which the systemic importance of BigTech firms in financial services could be addressed. According to the analysis, of the three regulatory frameworks identified in the literature (“restriction”, “segregation”, “inclusion”), when a balanced approach is used, the segregation of financial and non-financial activities seems to be the most promising regulatory solution, as this model works best for taking account of the practical aspects of operation, regulation and supervision.