JFSA Project Uses Artificial Intelligence to Examine Annual Reports
The Open Policy Lab of JFSA finalized and published the results of a Proof-of-Concept (PoC) project on the use of artificial intelligence in examining annual reports. The project aims to determine if technologies, including artificial intelligence, could be used to effectively and efficiently examine annual reports and be good ways to find better narrative information.
The following are the key insights from the Proof-of-concept:
- The results suggest that textual information could be widely analyzed precisely and in large quantities by artificial intelligence due to the progress of the natural language processing technology.
- It is seen in some approaches that artificial intelligence understands the sentence structure and context and tries to analyze sentences in a more human-like way. If there was sufficient time and more data to be analyzed, artificial intelligence would be able to work much better. However, since the criterion of artificial intelligence tends to be a black box, it is important to consider how to use it.
- Many companies emphasized that it was vital to develop artificial intelligence jointly with the person who judged the evaluations of descriptions. As humans and artificial intelligence have their own areas of expertise, it is important for humans and artificial intelligence to play their own roles to achieve better performance. Humans should provide their judgment and knowledge to artificial intelligence as well as interpretation of the results and feedback.
The PoC project team, with the cooperation of 20 corporate participants from the private sector, conducted a series of PoC tests by taking a variety of approaches, such as programming, machine learning, and deep learning. The test ended on June 30, 2019. After that, the PoC project team compiled test results, including respective test methods, new insights, and future possibilities.
Keywords: Asia Pacific, Japan, Banking, Annual Report, Artificial Intelligence, NLP, Fintech, Proof of Concept, JFSA
Related Articles
EBA Updates Filing Rules for Supervisory Reporting
The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
EBA Publishes Standards on Disclosure of Investment Policy Under IFR
The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).
APRA Finalizes Guidance for New Prudential Standard on Remuneration
The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.
OCC Updated LIBOR Self-Assessment Tool for Banks
The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).
TCFD Updates Guidance for Financial Disclosures on Climate Risk
The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
BCBS Report Examines Progress on Adoption of Basel III Framework
The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.
ACPR Implements Updates Related to DPM Version 3.1
The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.
EBA Note Examines Transition Risks of Benchmark Rates
The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.
