Banking regulators should forge better cross-border ties and make sure their supervisory frameworks are flexible enough to cater for the rapid advances in financial technology, according to the industry's top rulemaking body.

The recommendations from the Basel Committee on Banking Supervision — made in a consultation paper entitled Sound Practices: Implications of fintech developments for banks and bank supervisors — come as financial regulatory bodies pay closer attention to the impact of new technologies on the security of the wholesale markets.