Featured Product

    FSI Paper Advocates Setting Global Guidance on Artificial Intelligence

    August 03, 2021

    The Financial Stability Institute (FSI) of the Bank for International Settlements (BIS) published a paper that examines the existing policies on governance of artificial intelligence in financial services. The paper examines policy documents on the governance of artificial intelligence, as issued by financial authorities in nine jurisdictions, along with other cross-industry artificial intelligence governance guidance documents that apply to the financial sector; the nine jurisdictions are European Union, France, Germany, Hong Kong, Luxembourg, Netherlands, Singapore, United Kingdom, and United States. After the analysis, the authors conclude that there is scope for financial standard-setting bodies to develop international guidance or standards in this area.

    The paper notes that most supervisors are still in early stages of developing artificial-intelligence-specific governance principles or guidance for financial firms. While such high-level guidance can be useful to stand the test of time and be durable enough to apply in a technology-agnostic way, firms would find it useful to have more concrete practical guidance. Most supervisors are working in partnership with industry and other technology stakeholders to develop such guidance. In the absence of concrete practical guidance or supervisory expectations on artificial intelligence governance, some firms are finding it difficult to properly set up safeguards in their artificial intelligence implementations. Authorities’ views on how these common themes should be implemented are still evolving. A continued exchange of views and experiences at the international level could eventually lead to the development of international standards. Such international standards could be helpful particularly to jurisdictions that are just starting their digital transformation journey. They can also serve as a minimum benchmark in guiding orderly deployment of artificial intelligence technologies within the financial sector. As more specific regulatory approaches or supervisory expectations emerge on specific aspects of the artificial intelligence use cases, standard-setting bodies might be in a better position to identify the common best practices that will be useful for other jurisdictions to consider.


    Related Links

    Keywords: International, Banking, Artificial Intelligence, Guidance, Regtech, Fintech, Modelling Risk, Governance, Lending, Basel, BIS, FSI

    Featured Experts
    Related Articles

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    FASB Proposes Improvements to 2023 GAAP Reporting Taxonomy

    The Financial Accounting Standards Board (FASB) is seeking comments, until November 03, 2022, on the proposed technical and other conforming improvements for the 2023 GAAP Financial Reporting Taxonomy.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8588