Failure of mobile money services: standards for systemic risk
Files
Accepted manuscript
Date
2022-08-01
DOI
Authors
Greenacre, Jonathan
Geva, Benjamin
Version
Accepted manuscript
OA Version
Citation
J. Greenacre, B. Geva. 2022. "Failure of Mobile Money Services: Standards for Systemic Risk" Journal of International Banking Law and Regulation, Issue 6.
Abstract
With an overview analysing the mobile money system,
this article provides a preliminary criterion for
determining potential systemic risk of collapse of a mobile
money firm (MM firm). The article has two main
components: first, defining systemic risk, it clarifies that
systemic risk is likely to arise through a delay in returning
customers’ funds from an MM firm in insolvency
proceedings. Second, the article points out that
determining whether this delay will have systemic
consequences ought to consider diverse elements,
particularly the range of components of the economy
which could be impacted by the failure of an MM firm,
the size of the failing MM firm, available substitutes for
mobile money, and interconnections with the remainder
of the economy. Future research should explore this topic
in greater depth and begin developing regulatory tools
that can address potential systemic consequences of
failure, such as accelerated bankruptcy regimes.