US Agencies (CFPB, FDIC, FED, NCUA, and OCC) are seeking input on the use of artificial intelligence by financial institutions. The aim is to better understand the use of artificial intelligence, including machine learning; appropriate governance, risk management, and controls over artificial intelligence; and challenges in developing, adopting, and managing artificial intelligence. The comment period for this request for information will end 60 days after its publication in the Federal Register.
The agencies are seeking information on how financial institutions use artificial intelligence in their activities, including fraud prevention, personalization of customer services, credit underwriting, and other operations. The request for information also solicits respondents’ views on the use of artificial intelligence in financial services to assist in determining whether any clarifications from the agencies would be helpful for financial institutions’ use of artificial intelligence in a safe and sound manner and in compliance with the applicable laws and regulations, including those related to consumer protection. The Appendix of this request for information includes a non-comprehensive list of laws, regulations, and other agency issuances that may be relevant to the use of artificial intelligence approaches by agency-supervised institutions.
The agencies support responsible innovation by financial institutions. Use of new technologies, such as artificial intelligence, has the potential to augment decision-making and enhance services available to consumers and businesses. As with any activity or process in which a bank engages, identifying and managing risks is key.
Comment Due Date: FR + 60 Days
Keywords: Americas, US, Banking, Insurance, Securities, Artificial Intelligence, Machine Learning, Regtech, Suptech, Credit Risk, Fraud Prevention, US Agencies
The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.
The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.