The growing use of artificial intelligence (AI) poses difficult challenges for the financial authorities. AI allows private-sector firms to optimise...
Systemic financial risk has both internal and external drivers. So, when we focus too strongly on preventing internal crises, such as the 2008 Global...
Financial institutions are rapidly embracing AI – but at what cost to financial stability? This column argues that AI introduces novel stability risks...
Financial crises usually inflict the most damage when banks suddenly shift from pursuing profits to survival. This column argues that such drastic...
Artificial intelligence can act to either stabilise the financial system or to increase the frequency and severity of financial crises. This second...
The rapid adoption of artificial intelligence is transforming the financial industry. This first of a two-column series argues that AI may either...
Financial crises are not complicated, and many claim to know why they happen and how to prevent them. Why then do they happen with such alarming...
Artificial intelligence will both be of considerable help to the financial authorities and bring new challenges. This column argues the authorities...
Risk model hallucination happens when models are forced to forecast the likelihood of extreme events in cases where they have not been trained with...
As artificial intelligence makes inroads into the financial system, it exacerbates existing channels of instability and creates new ones. This column...
The use of artificial intelligence in the private sector is accelerating, and the financial authorities have no choice but to follow if they are to...
Pedro Duarte Neves says stress tests must evolve to capture systemic, liquidity and cyber risks.
This policy note summarises the main empirical findings on the effectiveness of macroprudential policy: macroprudential policy contributes to a...
Artificial intelligence is expected to be widely used by central banks as it brings considerable cost saving and efficiency benefits. However, as this...
Crypto-promoters and financial authorities are split on the future of cryptocurrencies. Should crypto join the mainstream or remain in the wilderness...
The financial regulators have recently taken an active interest in cryptocurrencies, more than a decade after their law enforcement counterparts did...
