Basel Committee Addresses AI Risks and Revises Banking Prudential Standards

The Basel Committee on Banking Supervision (BCBS) met to discuss artificial intelligence in the banking system, approved the annual assessment exercise for Global Systemically Important Banks (GSIBs), and agreed to consult on additional Pillar 2 guidance for interest rate risk in the banking book. The Committee will also provide updates on its targeted review of prudential standards for banks' exposures to crypto assets by year-end.