When Machines Attack: Frontier AI Cyber Threats and Policy Responses in the Financial Sector
FSI Occasional Paper No. 28 Frontier AI models can autonomously identify vulnerabilities and conduct sophisticated cyberattacks — but does that require a new regulatory framework, or a faster execution of existing ones? The Financial Stability Institute (FSI) of the Bank for International Settlements (BIS) has published FSI Occasional Paper No. 28, examining how frontier AI is transforming […]
High Expectation but Low Integration? Experiences in Modernising and Integrating Information Systems for Supervision
FSI Insights No. 77 As supervisory authorities invest in modernising their information systems, are those systems actually delivering more integrated and effective supervision? The Financial Stability Institute (FSI) of the Bank for International Settlements (BIS) has published FSI Insights No. 77, examining the evolution of information systems supporting the supervision cycle and the current state […]
Strengthening the Going-Concern Role of AT1: Options and Trade-offs
Are Additional Tier 1 (AT1) instruments actually functioning as going-concern capital — or have they become, in practice, a gone-concern tool? The Financial Stability Institute’s (FSI) latest report warns that the sector has never been stress-tested through a severe economic downturn, leaving leverage and borrower credit quality vulnerabilities untested. Key concerns include deepening ties between […]
Cyber risk stress testing for banks
FSI Briefs No 30 In the context of growing frequency and sophistication, and increasing potential impacts of cyber incidents, some authorities have disclosed that they are conducting cyber stress tests to enhance firm and sector resilience to operational disruptions, such as those caused by cyber-attacks. These tests benefit both authorities and firms by identifying vulnerabilities […]
In data we trust? Emerging policy and supervisory approaches to AI data use in financial services
FSI Insights No 73 Data play a critical role in the transformation of the financial sector through artificial intelligence (AI). While challenges in data management are not new, they pose significant barriers to the wider adoption of advanced AI systems, such as generative AI (gen AI). Key concerns include data privacy, quality and security, which […]
Smart supervision: sound capacity development approaches for tech-savvy supervisors
FSI Insights No 70 Financial authorities’ role in maintaining the safety and soundness of firms and the financial sector requires unique expertise and skills. In an ever-changing technological landscape, financial authorities need suitably skilled staff. This allows them to benefit from novel supervisory tools and address emerging risks from financial institutions’ use of technology. Building […]
Cross-border crisis simulation exercise in Northwest Africa
FSI Occasional Papers No 25 The Financial Stability Institute conducted a crisis simulation exercise involving authorities from jurisdictions in Northwest Africa. Together, they worked to manage the simulated failure of a fictional regionally systemic cross-border banking group. Based on the exercise’s findings, the report provides targeted recommendations to enhance crisis management frameworks and practices. In […]