IMF updates financial sector assessment program to account for AI risks — Bangkok Post
The International Monetary Fund is updating the Financial Sector Assessment Program (FSAP) to help member states protect financial systems from modern risks. Among them, the fund names the development of artificial intelligence, cyberattacks, rising public debt and geopolitical tensions, Bangkok Post reports.
AI risks and opportunities
Michaela Erbenova, deputy director of the IMF's Monetary and Capital Markets Department, said that under the FSAP, the fund is examining ways to improve the assessment of operational resilience. Particular attention is being paid to AI, which creates new opportunities and risks for financial systems.
According to her, artificial intelligence can support financial inclusion and economic growth. At the same time, its rapid development raises concerns over cyberthreats, operational disruptions and the ability of existing regulatory mechanisms to respond effectively to them.
As part of the program review, the IMF will check whether national authorities have sufficient regulatory tools, standards and qualified specialists to address such challenges. The fund will also consider whether existing rules, reporting requirements and capital standards are in line with technological changes.
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System resilience and implementation of recommendations
Deputy Governor of the Bank of Greece Christina Papaconstantinou noted that financial stability assessments should cover the resilience of the entire system, rather than only individual institutions. Even a financial institution protected from cyberattacks may remain vulnerable if an attack affects interconnected organizations or critical infrastructure.
She stressed that the effectiveness of such assessments depends on whether countries implement the recommendations and adapt policies to changes in financial conditions. In her view, combining FSAP findings with the IMF's regular Article IV surveillance could help authorities track progress and adjust policies without waiting for the next full assessment.
Erbenova said that recommendations should be adapted to national conditions, legal requirements and regulators' resources. The IMF also plans to strengthen support for countries' capacity development to implement the recommendations. Cooperation with the World Bank could complement such assessments with broader development goals, including in the area of financial inclusion.
