ABSTRACT
This chapter explores the open banking (OB) regulations in the EU and the UK. Both PSD2 and the UK’s OB, which imports PSD2, exemplify a compulsory regulatory approach to addressing the OB regulatory issues discussed in Chapter 2. Upon evaluation of seven features of these OB regulations, we find that the regulators play an important role in leading OB policies. For example, the UK regulations first established a professional authority (the Competition and Markets Authority, CMA) that handles competition issues independently. Under the CMA, the Open Banking Implementation Entity (OBIE) was created to implement OB policies in the UK. Beyond establishing those leading regulatory bodies, successful regulation requires effective collaboration between different authorities including, for instance, CMA and the existing sectoral regulator, that is, FCA. It appears that, with the aid of these two factors—independent regulatory bodies that communicate effectively, OB has been developed and implemented smoothly in the UK. In contrast, we examine in Chapter 4 another less effective regulatory approach to OB, that is, the voluntary approach adopted in Taiwan.
