Bank for International Settlements – BIS’ Post

We are thrilled to have Yuval Noah Harari, historian, philosopher and bestselling author, speak at the BIS Innovation Summit 2024 on Tuesday 7 May from 16:55 to 17:40. Professor Yuval Noah Harari will join Cecilia Skingsley, Head of the BIS Innovation Hub, in a discussion exploring AI and the evolution of financial systems. Join the livestream on the BIS website and YouTube channel. #BISInnovationSummit #Harari

General Manager Agustín Carstens joined the Inter-American Development Bank president, Ilan Goldfajn, at an event in Washington to present the latest advancements of Project FuSSE (Fully Scalable Settlement Engine), a BIS Innovation Hub project that aims to provide flexible and scalable core infrastructure to serve as a base for a modern financial system, meeting the demands of the digital age. In the face of a rapidly digitising economy, the traditional systems face myriad challenges. FuSSE offers an open-source solution designed to meet these evolving demands head-on. At the event, Goldfajn said that at least six Latin American central banks are interested in developing the project together with the BIS and the IDB. The governors of the Banco Central de Chile, Rosanna Costa; Banco de la República - Colombia, Leonardo Villar; and Banco Central del Uruguay, Diego Labat, joined a panel to discuss the challenges for fast payments systems in the region, moderated by Alexandre Tombini, BIS Chief Representative for the Americas. Project FuSSE marks the first collaboration between the BIS and the IDB, following an agreement signed by the two institutions in September 2023. Read more about Project FuSSE https://bit.ly/4aDezS5 And the partnership with the IDB: https://bit.ly/4d4c6lE

The BIS Innovation Summit 2024 is almost here! Join us live online on 6–8 May to hear policymakers and experts discuss navigating rapid innovation. Check out the full agenda here: https://bit.ly/4a9PTjw #BISInnovationSummit

The use of artificial intelligence (AI) and machine learning (ML) in banking raises important prudential and financial stability challenges, according to Pablo Hernández de Cos, Chair of the Basel Committee on Banking Supervision and Governor of the Banco de España. Delivering the keynote speech at the Institute of International Finance Global Outlook Forum in Washington DC, he said: “Left unchecked, such models could potentially amplify future banking crises.” “But these challenges and limitations are not insurmountable, provided that central banks and supervisory authorities adjust to this new reality and collaborate effectively.” He stressed, however, that “despite attempts to paint a robotic future for banking, the fact is that humans – and in particular human judgment – can and must continue to play an integral role.” Read the full speech here https://lnkd.in/eFhHfeUZ #ArtificialIntelligence #BankingSupervision #BaselCommittee

At the Asia-Pacific Trade Facilitation Forum 2024, the BIS Innovation Hub Hong Kong Centre received the Trade Facilitation Innovation Award for Project Dynamo, from the United Nations ESCAP and the Asian Development Bank (ADB). Congratulations to all our colleagues involved in this project. To learn more about the project: https://bit.ly/3eWDHvu #Trade #AsiaPacific #BankForInternationalSettlements #MomentsThatMatter

The Basel Committee on Banking Supervision is 50! Why was it set up, what does it do, and how is it working for a safer and more resilient banking system? “The Basel Framework and Core Principles” – the third of four explainer videos – looks at the development and key elements of the Basel Framework and Basel Core Principles. The Framework has been adopted in over 100 jurisdictions and comprises three “pillars” covering the minimum requirements for capital and liquidity, supervisory reviews, and public disclosure requirements. The Core Principles are a minimum set of standards universally applicable to all countries and all banks. Learn more about them here https://lnkd.in/esnyujuQ #BaselCommittee #BaselIII

The Basel Committee on Banking Supervision has issued a discussion paper on how climate scenario analysis (CSA) can be practically used to help strengthen the management and supervision of climate-related financial risks. The newly published discussion paper, "The role of climate scenario analysis in strengthening the management and supervision of climate-related financial risks", looks at the objectives of CSA exercises and relevant features to design and use them. In 2022, the "Principles for the effective management and supervision of climate-related financial risks" encouraged banks to use CSA to assess the resilience of their business models and strategies to a range of climate-related pathways and determine the impact on their overall risk profile. Supervisors were also encouraged to determine whether banks were applying CSA, where appropriate. However, differences in the scope, features and approaches of CSA exercises across jurisdictions and banks limit the harmonisation of supervisory expectations and the comparability of results. The Committee is therefore seeking stakeholder feedback that, in conjunction with the work under way in other global forums such as the Financial Stability Board (FSB) and Network for Greening the Financial System (NGFS), may lead to additional complementary work in pursuit of its mandate to strengthen the regulation, supervision and practices of banks worldwide. Read more here https://lnkd.in/ebDf5XCJ #BaselCommittee #ClimateRisk

The “Finternet” is a vision for the future financial system, with multiple interconnected financial ecosystems, much like the internet. In a new working paper, Agustín Carstens and Nandan Nilekani argue that the Finternet would empower individuals and businesses by placing them at the centre of their financial lives.  Unified ledgers are a promising vehicle to turn this vision into reality. Unified ledgers would not only improve existing financial transactions, but also make entirely new financial products and transactions possible.  The paper also describes the necessary economic, technological, regulatory and legal building blocks and lays out eight fundamental design considerations that should be a core part of the future financial system.  Read the paper here: https://lnkd.in/e_6YhTm3 The paper will be presented at an event at the Peterson Institute for International Economics on 19 April, featuring presentations from the authors and a panel discussion with Governor of the Banco Central do Brasil Roberto Campos Neto, President of the Deutsche Bundesbank Joachim Nagel, and Governor of the Bank of Korea Changyong Rhee, moderated by Adam Posen. Watch online at https://lnkd.in/ed2mf2pK #Finternet #UnifiedLedger #FutureOfFinance

In a speech today at the Innovate Finance Global Summit, #BISInnovationHub Head Cecilia Skingsley highlighted the importance of public-private collaboration in developing new technology for financial supervision. Read more: https://bit.ly/3VVLkFF #IFGS2024

In a new #BISness podcast of a media briefing, Cecilia Skingsley and Hyun Song Shin explain Project Agorá, an ambitious new initiative by the BIS and seven central banks to explore how tokenisation can enhance the functioning of the monetary system. Banque de France (representing the Eurosystem), Bank of Japan, Bank of Korea, Banco de México, Schweizerische Nationalbank, Bank of England and Federal Reserve Bank of New York will seek to work in partnership with private financial firms convened by the Institute of International Finance. Listen to the podcast https://spoti.fi/4aMdyaf (or in your favourite platform). Read more about Project Agorá: https://bit.ly/4ar02cj #Podcast #CrossBorderPayments