Global supervisors target AI risks and non-bank linkages
Nearly 300 central bankers and supervisors from over 60 jurisdictions gathered in Bali for the 24th International Conference of Banking Supervisors to address artificial intelligence, regulatory simplification and non-bank financial risks.
Judgment and emerging technology
The 24th International Conference of Banking Supervisors in Bali brought together 300 officials to debate regulatory modernization.
Discussions focused on the Basel Committee's revised Core Principles, which emphasize judgment-led, risk-based supervision.
Delegates examined operational resilience vulnerabilities, specifically banks' dependence on critical third-party service providers and escalating cyber threats.
The agenda also addressed artificial intelligence risks alongside cryptoassets, while exploring bank exposures to non-bank financial institutions through synthetic risk transfers.
“The financial landscape continues to evolve, shaped by greater interconnectedness,” Bank Indonesia Governor Destry Damayanti noted.
Simplification without dilution
Hosted jointly by Bank Indonesia and the Indonesian Financial Services Authority, the conference evaluated regulatory complexity.
Delegates debated whether supervisory rules can be simplified without weakening global financial stability, emphasizing proportionality and material risks.
Basel Committee Chair Erik Thedéen called the forum a vital platform to challenge supervisory thinking.
OJK Chairperson Friderica Widyasari Dewi emphasized maintaining regulatory balance as banks expand operations.
Broad consensus, elusive execution
Global supervisors correctly identify non-bank leverage and cloud concentration as systemic blind spots.
Yet turning dialogue into enforceable, cross-border standards remains notoriously difficult amid disparate national priorities.
Without binding timelines for AI and shadow banking rules, supervisory progress risks lagging market realities.
IN: