Background The financial system has undergone a significant transformation in recent years, driven by rapid advancements in cloud computing, artificial intelligence (AI), and other emerging technologies for payments. These have had a profound impact on how banks do business, people interact with banks, and customers make payments for goods and services. Advancements in digital technology […]
Category Archives: Financial Stability
03
Dec
Dec
1. Introduction The digitalization, the rise of crypto-assets and the advancement of technologies, such as distributed ledger technologies, have fuelled an unprecedented wave of innovations in payments and spurred many Central Bank Digital Currencies (CBDCs) projects over the past decade[1]. Central banks worldwide have been actively exploring solutions to preserve financial stability and safeguard monetary […]
Financial Stability
The Adoption of AI in SEACEN Member Central Banks and Considerations for Financial Stability
21
Nov
Nov
The purpose of this blog is to explore the adoption of AI in SEACEN’s member central banks (MCBs) and explore the risks to financial stability, and how central banks and regulators should respond.
Financial Stability, Payment Systems
From Unified Payment Interface to Unified Lending Interface: India’s Digital Journey Towards Financial Inclusion
13
Aug
Aug
The financial inclusion journey involves many legs: empowering citizens with a digital identity to open bank accounts; building a digital public infrastructure to facilitate low-cost interoperable payment services; and creating a technology platform to facilitate efficient delivery of frictionless credit. This blog takes readers through this journey in India.
12
Aug
Aug
Introduction Every investment activity whether “brown” or “green” requires funding. Such funding is typically obtained through bank loans or by issuing securities in the capital markets. The interest and principal amounts borrowed are repaid using the cash flows generated by the investment activities. But when these cash flows are insufficient to meet repayment obligations on […]
Financial Stability, Payment Systems
A Streetcar Named “Retail CBDC”: Should Central Banks Get on Board?
24
Jul
Jul
1. Introduction A Central Bank Digital Currency (CBDC) has emerged as one of the most significant trends reshaping the global financial landscape. Central banks around the world are actively exploring this innovation, with the latest BIS survey in 2024 revealing that 94% of the 86 surveyed central banks are investigating CBDCs. This movement resembles a […]
Financial Stability, Payment Systems, Supervision
Trends Shaping the Payment and Financial Landscape in Southeast Asia: A Forward-Looking Perspective
10
Apr
Apr
This blog highlights the key trends shaping the region’s payment and financial landscape and discusses their implications for financial institutions, regulators, and consumers alike. Southeast Asia’s payment landscape is evolving at an unprecedented pace, driven by rapid technological advancements, regulatory developments, and shifting consumer behaviors. The pandemic-induced acceleration of digital transformation has further propelled the […]
Financial Stability, Supervision
The European Union’s Artificial Intelligence Act: Reshaping the Future of Artificial Intelligence Regulation
09
Apr
Apr
The rapid progress of artificial intelligence (AI) has significantly impacted industries, particularly finance and financial services, offering remarkable advancements in efficiency, decision-making and service delivery. But AI adoption has also introduced ethical, legal and societal challenges, including concerns over privacy, bias and accountability. Despite – or perhaps because of – the pace of these developments, […]
Financial Stability, Supervision
Disclosures and Transparency in Managing Climate-related Financial Risks
18
Nov
Nov
The Basel Committee’s consultative document on Pillar 3 disclosures for climate-related financial risks has evoked strong responses. Some feel that the proposed disclosures are not consistent with the objectives of Pillar 3. Some others support the proposals and suggest additional disclosures, including for nature-related financial risks. But what should be the way forward for climate-related disclosures? The author explains.