Digitalization transforms many aspects of business activity, reduces the role of cash in financial intermediation, and promotes the emergence of new forms of money. This is a major challenge for the central banks.
Ten years after the financial crisis, the world’s major central banks are facing the difficult task of supporting economic growth with limited room for maneuver in the area of monetary policy.
Climate change is one of the greatest global challenges. Even though artificial intelligence and machine learning entail a significant carbon footprint, they could be used to reduce greenhouse gas emissions.
Artificial Intelligence modifies the previously existing links between entities operating on the financial markets, introduces new competition rules, and plays an increasingly important role. Its potential poses a major challenge for the financial system.
The global economy is slowing down, largely due to a widespread sense of uncertainty, the main source of which is the continuing US-Chinese trade war. According to the IMF about 70 per cent of the global economy will experience a slowdown this year.
In the Global Financial Stability Report the IMF examines the evolution of financial markets since the recent financial crisis and points to the buildup of downside risks in various segments of the financial market.
On the 20th anniversary of creation of the single currency, Europe seeks to challenge the USD’s dominance in the global financial system.
The global demand for artificial intelligence technology will continue to grow. It is estimated that artificial intelligence will add USD15.7 trillion to the global GDP by 2030.
Central banks and the regulators are increasingly recognizing the potential financial effects of climate change and are engaging in researches into their impact on financial stability.
Artificial intelligence could become a useful force in the financial services sector, but it could also become a destabilizing force posing a threat to the global financial system.