Recent developments in technology and artificial intelligence (AI) provide huge potential for innovation and productivity growth. But they also create new financial stability risks. In this speech, Randy will outline the distinction between fundamentally disruptive versus more incremental innovation and the different regulatory challenges with dealing with these two types of change. He will also discuss the importance of the Financial Policy Committee and Financial Market Infrastructure Committee thinking about these issues in the context of both their primary and secondary objectives.
Speech
It’s a pleasure to be at CityWeek to discuss a topic that has the power to transform the financial services landscape and, with it, the way we think about financial stability risks.
I have approached this subject with my two Bank of England hats on: as an external member of both the Bank’s Financial Stability Committee (FPC), charged with identifying, monitoring and mitigating systemic risks; and the Financial Market Infrastructure Committee (FMIC), which supervises financial market infrastructures. Each Committee has a role in protecting and enhancing financial stability in the UK. Both are alert to the opportunities and risks presented by financial technology and artificial intelligence (AI).
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