AI news
The Basel Committee on Banking Supervision (BCBS) has finalized the "Basel IV--AI" framework, introducing the world’s first capital requirements specifically targeting AI--driven operational and model risks in global banks. Starting in 2027, Global Systemically Important Banks (G--SIBs) must maintain an additional capital buffer of up to 1.5% of risk--weighted assets if they utilize autonomous AI for core functions like high--frequency trading or credit underwriting. This move aims to mitigate "algorithmic contagion" and ensures that financial institutions have the liquidity to withstand AI--induced market shocks. Sources: Bank for International Settlements, Financial Times.