The Reserve Bank of New Zealand (RBNZ) has warned that the accelerating adoption of artificial intelligence in financial services poses emerging risks to financial stability. In a report released Monday ahead of its biannual Financial Stability Report, the central bank highlighted concerns around system errors, data privacy, and market distortions.
“Errors in AI systems, data privacy concerns and market distortions could amplify existing risks,” the RBNZ noted. It also pointed to increasing reliance on a few major third-party AI providers, which could lead to market concentration, new contagion risks, and greater vulnerability to cyberattacks.
Despite these risks, the central bank acknowledged that AI offers clear benefits, including increased productivity, more accurate modelling, improved risk assessment, and enhanced cyber resilience.
Kerry Watt, RBNZ’s director of financial stability assessment and strategy, underscored the need for vigilance: “There is considerable uncertainty around how AI will shape the financial system. We will continue to closely monitor developments … to ensure the system remains well-positioned to manage emerging risks.”
This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( RBNZ flags financial stability risks from rapid AI adoption )
Also on site :
- Powerful blast rocks residential building in Moscow
- ‘Sopranos’ and ‘The Wire’ Actor Dies at 84
- I Took Magnesium Before Bed for 6 Months and It Completely Transformed My Sleep