report August 3, 2021 Humans keeping AI in check – emerging regulatory expectations in the financial sector FSI Insights No 35, August 2021. Artificial intelligence (AI) has the potential to significantly improve the delivery of financial services. Several financial authorities have recently began developing frameworks, outlining their expectations on AI governance and use by financial institutions. These frameworks converge on common guiding principles on reliability, accountability, transparency, fairness and ethics.... Bank of International Settlements
report August 2, 2021 Regulating big techs in finance BIS Bulletin No 45 - Regulating big techs in finance - Big tech firms entering financial services can scale up rapidly with user data from their existing business lines in e-commerce and social media, and by harnessing the inherent network effects in digital services. In addition to traditional policy concerns such as financial risks, consumer protection and operational resilience,... Bank of International Settlements
report July 29, 2021 AML and CFT in banking – Executive Summary AML and CFT in banking – Executive Summary... Bank of International Settlements
report July 22, 2021 Fiscal and monetary policy interactions in a low interest rate world We analyse fiscal and monetary policy interactions when interest rate policy is hampered by the zero lower bound (ZLB) in an environment where expectations are formed with perpetual learning.... Bank of International Settlements
report July 22, 2021 Covid-19 and bank resilience: where do we stand? A forward-looking view on bank resilience can be obtained through a combination of regulatory capital ratios, market valuations and insights from stress tests. Banks appear to have avoided the losses that once seemed likely given the severity of the pandemic shock, due in large part to policy support. While market valuations have largely recovered to pre-pandemic levels, a weaker... Bank of International Settlements
report July 15, 2021 Global reflation ? Inflation has risen in many countries. In conjunction with a rebound in GDP growth and evidence of significant bottlenecks in some sectors, this has prompted concerns that the low inflation era of recent decades could be nearing its end. A closer look at the data reveals that the pickup in inflation can be ascribed largely to base effects, increases... Bank of International Settlements
report July 14, 2021 Stress-testing banks for climate change – a comparison of practices FSI Insights No 34, July 2021. This paper discusses the challenges that emerge when trying to adapt traditional stress tests to banks' climate-related risks. These challenges relate to: (i) data availability and reliability; (ii) the adoption of very long time horizons; (iii) uncertainty around future pathways of key reference variables covering physical risks (eg floods, temperature increases and rising... Bank of International Settlements
report July 13, 2021 Fintech and the digital transformation of financial services: implications for market structure and public policy Economic frictions such as information asymmetries and economic forces such as economies of scale and scope give rise to financial intermediaries. These frictions and forces also shape market structure. While technological advances are not new to finance, digital innovation has brought major improvements in connectivity of systems, in computing power and cost, and in newly created and usable data.... Bank of International Settlements
report July 9, 2021 Central bank digital currencies for cross-border payments Joint report to the G20 by the Committee on Payments and Market Infrastructures, the BIS Innovation Hub, the International Monetary Fund (IMF) and the World Bank. The report analyses how CBDCs could facilitate enhanced cross-border payments, and how practical efforts are taking these considerations forward.... Bank of International Settlements
report July 6, 2021 Limits of stress-test based bank regulation This paper studies exchange-traded funds' (ETFs) price impact in the most ETF dominated asset classes: volatility (VIX) and commodities. I propose a model-independent approach to replicate the VIX futures contract. This allows me to isolate a non-fundamental component in VIX futures prices that is strongly related to the rebalancing of ETFs. To understand the source of that component, I... Bank of International Settlements
