Institute for International Finance CEO Tim Adams Speaks at International Conference of Banking Supervisors
When we discuss where we are today and whether additional policies need to be put in place, we must first pause and recognize the sweeping changes that have already occurred. Bank balance sheets are structurally different relative to what they were eight years ago, and the system is now much more resilient.
We welcome the Basel Committee’s work to revise its current proposals to ensure an adequate role for internal models in the regulatory capital framework, in a way that preserves risk sensitivity and establishes the right incentives within firms.
Emerging fields of Artificial Intelligence, machine learning and other technologies — like cloud computing and the Blockchain — will fundamentally change the structure of the financial services industry
This rapidly evolving environment will create challenges:
Established institutions face tremendous costs to update legacy systems.
Firms must remain hypervigilant against cyber threats.
Further, the issues around the use of data and limitations on that use will grow in importance.
But new technologies also bring tremendous opportunities. It will allow institutions to:
Reach new customers;
Reduce transactions costs and clearing times; and
Leverage big data for better analysis and insights.
The full speech is available here.