BoJ’s Ueda: Technological advancements bring new risks to financial stability

USD/JPY

FXStreetNov 21, 2024 5:32 AM

Bank of Japan (BoJ) Governor Kazuo Ueda doesn’t touch upon monetary policy and economic outlook during his scheduled appearance on Thursday.

Key quotes

Financial industry is set to undergo even more transformation with the recent rise of generative AI.
To ensure a future that reaps the full benefits of technology, it is essential to build on the insights gained from the expertise and trial-and-error of financial professionals.
We have seen how technology has diversified financial intermediation.
A regulatory and supervisory framework that adapts to technological advancements is also essential.
As AI continues to spread globally, the Bank of Japan closely follows regulatory responses across jurisdictions.
Technological advancements bring new risks to financial stability.
As financial services grow more diverse and complex, the channels of risk transmission have become less transparent, and current financial regulations may not be fully equipped to manage new types of financial services.
This environment underscores the need for operational resilience, including robust management of cybersecurity and third-party risks.

Market reaction

USD/JPY holds its position above 155.00, at the time of writing, still down 0.22% on the day.

Reviewed byTony

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