Artificial intelligence
Supervision Benchmarks 2025 – executive summary
Data reveals focus on digitalisation and widespread use of suptech tools
Japan FSA’s Ariizumi on Basel delays and regulating AI
Outgoing international affairs chief issues rallying call for Basel III adoption, saying Japan has “kept its promise”
MAS expects slower growth in Singapore’s financial sector
Central bank says major impact from tariffs has yet to emerge at release of annual report
The battle for the future of central banks
Inflation-targeting institutions must not simply defend against overt interference, they must also resist a sly erosion of their authority, writes Biagio Bossone
Data automation at ‘moderate’ level in most supervisors
Over 70% of supervisors plan to upgrade data collection in the next year
AI demands ‘deep organisational changes’ at central banks – paper
NBER study finds around half of Fed roles could be impacted significantly by adoption of technology
Book notes: Central banking at the frontier, by Thammarak Moenjak
This well-structured book provides a comprehensive overview of the challenges digitalisation poses for finance and includes possible actions for central banks
Ex-OCC chief urges new approach to AI explainability
Michael Hsu suggests shift from academic analysis to decision-based techniques
How central banks manage their own cyber defences
Resilience against system breaches, ransomware and phishing attacks is in focus, alongside managing third-party risks and the threat of state actors to payment systems
HKMA taps GenAI to monitor shadow banking risk
News headlines, social media and bank earnings calls all followed using in-house tools
No changes to Fed swap lines, Lagarde worried about ‘truth’ – panel
Fed, ECB, BoE, BoJ and BoK governors discuss tariffs, stablecoins, r*, scenario analyses and the future
Ex-OCC chief Michael Hsu on the impact of an America-first agenda
The former acting comptroller of the currency speaks with Christopher Jeffery about the future of the US Treasury market, Fed independence, financial de-regulation, the Genius Act and international co-operation
Central banks must rethink how they speak
Communication is critical for effective policy and social media is not merely a channel of communication, it is a space for dialogue, a feedback loop and a reputational battleground, writes Biagio Bossone
Developing AI comes with geopolitical risks, says panel
Summer Meetings panel discusses infrastructure supply chains and where data is stored
Rhetoric on AI is rarely backed up by resources – panellists
Central bankers tell Summer Meetings their institutions seldom have enough to spend on innovation
AI ‘not there yet’ for reserve management, panellists say
Managers say new technology helps with some analysis but risks remain
Bottom-up approach crucial when adopting AI – panel
Central banks must engage end users when implementing new technology, officials say
Central banks use ‘hackathons’ to promote innovation
Key risks from AI paradigm shift will be reputational, panellists say
Trends in reserve management 2025: survey results
Insights on strategies in anticipation of tariffs, interest rate divergence and geopolitical risk, FX diversification and de-dollarisation, as well as bitcoin in reserves, FX interventions and gold
‘Chat Bankman-Fried’ has poor grasp of governance – study
Bank of Italy paper finds many LLMs would choose to behave in similar way to former crypto exchange owner
AI poses financial stability risks, says RBNZ report
Market concentration among potential sources of instability, research finds
AI forecasting outperforms traditional methods – study
New approach still only complements existing models but results are promising, say authors
Vector-based language model can improve forecasts – BIS paper
“Word embeddings” can be used to make better inflation predictions, authors find
AI crucial for driving growth, says BoE governor
Bailey compares technology’s transformative potential to advances of industrial revolution