LONDON (Reuters) – Banks need to anticipate risks from using artificial intelligence (AI) and machine learning (ML) in their operations as part of day-to-day governance, the world's top banking regulator said on Wednesday. Stated.
Pablo Hernández Decos, Governor of the Bank of Spain and Chairman of the Basel Committee on International Banking Supervision, said there are unanswered questions about whether the use of AI and ML in banking will have a net positive or negative impact on global financial stability. He said that there is.
“My main message is that the use of AI in banking raises important prudential and financial stability challenges,” DeCos said in a speech in Washington.
“If left unchecked, this model could amplify future banking crises.”
Dekos said digital innovation will further facilitate financial interconnectivity across borders and sectors, and cooperation between central banks and regulators will be needed to achieve appropriate regulatory baselines to oversee the use of AI and ML. He said it would be necessary.
“When it comes to banking, it is important that banks anticipate and oversee the risks and challenges posed by AI/ML at both micro and macro levels and incorporate them into their day-to-day risk management and governance arrangements.” said Dekos.
He said the Basel Committee will soon release a more comprehensive report on financial digitalization and its implications for regulation and supervision.
(Reporting by Hugh Jones; Editing by Alex Richardson and Paul Simao)
