by Ajay Katara

Large financial institutions (LFI), defined as firms with $100 billion or more in assets, are supervised to enhance their resilience and reduce the likelihood of failure. This oversight also aims to limit the broader economic and financial system impact if such a firm experiences failure or significant weakness. Large banking organisations are classified into four categories, each with distinct regulatory requirements. Continue reading…

The Financial Stability Board (FSB) Regional Consultative Group for Europe (RCG Europe) met on 14 and 15 November in Munich, Germany. The meeting was hosted by the Deutsche Bundesbank and Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). On the first day, members participated in a workshop on the financial stability implications of private credit. Members discussed the drivers of growth of this form of credit and the benefits it brings to the broader economy. They also discussed the need to enhance understanding of potential risks, given limited data on the market, as well as existing regulations. Continue reading…

IBM (NYSE: IBM) and Pasqal have on 21 November announced an update to their intended collaboration to build new, integrated frameworks for quantum-centric supercomputing with Qiskit, the world’s most performant quantum software. The two companies will soon begin developing a unified programming model to facilitate seamless interoperability across different types of quantum computing hardware. This integrated architecture will work across IBM’s next-generation and utility-scale quantum computers, Pasqal’s neutral atom-based quantum devices, and classical high-performance computing (HPC) resources such as CPUs and GPUs. Continue reading…

The International Association of Insurance Supervisors (IAIS) Executive Committee has approved the final version of the Insurance Capital Standard (ICS) as a prescribed capital requirement for internationally active insurance groups (IAIGs), which will be recommended for adoption at the IAIS Annual General Meeting on 5 December 2024. Continue reading…

The Financial Stability Board (FSB) has on 14 November published The Financial Stability Implications of Artificial Intelligence, a report outlining recent developments in the adoption of artificial intelligence (AI) in finance and their potential implications for financial stability. Widespread adoption and more diverse use cases of AI have prompted the FSB to revisit its 2017 report on AI and machine learning in financial services. Financial firms currently use AI mainly to enhance internal operations and improve regulatory compliance, but generative AI (GenAI) and large language models have given rise to new use cases, such as document summarisation, information retrieval, and code generation. Continue reading…

Trade-based financial crime (TBFC) is responsible for an estimated $1.6 trillion in losses each year, nearly a third of the total cost of global fraud, which stands at $5.127 trillion annually. Yet, despite its massive economic impact, TBFC is alarmingly underreported in the media, making up just 0.1% of all fraud-related mentions in articles over the last year.  Continue reading…

A global operation, supported by Eurojust, has led to the takedown of servers of infostealers, a type of malware used to steal personal data and conduct cybercrimes worldwide. The infostealers, RedLine and META, taken down on 28 October targeted millions of victims worldwide, making it one of the largest malware platforms globally. An international coalition of authorities from the Netherlands, the United States, Belgium, Portugal, the United Kingdom and Australia shut down three servers in the Netherlands, seized two domains, unsealed charges in the United States and took two people into custody in Belgium.

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Research from Quantios’ latest Future Focus Report has revealed the number one business challenge for organisations going into 2025: increasing efficiencies while reducing costs. And, a further 88% of respondents have reported that they believe the way to achieve this is through digitalisation. However, in spite of this awareness, not all firms are acting with a sense of urgency. In fact, 70% of respondents admit that their firms continue to rely on multiple legacy systems and manual processes and only 42% of respondents stated that they plan to explore new technology options over the next five years – a timeline that may seriously hinder competitiveness. Continue reading…

At the COP29 UN Climate Change Conference on 11-22 November in Azerbaijan, the European Union will work with international partners to deliver on the goals of the Paris Agreement of limiting global average temperature rise to as close as possible to 1.5C. Climate change continues to be an issue which knows no borders, and increasingly harms lives and livelihoods across Europe and around the world. At COP29, the Parties to the Paris Agreement must ensure that global financial flows are increasingly aligned with the Paris Agreement, unlocking investments, through the adoption of a New Collective Quantified Goal (NCQG) on Climate Finance. The NCQG will be the main priority of this year’s negotiations. Continue reading…

The European Banking Authority (EBA) has recently published a Report on eligibility and use of credit insurance, in response to the European Commission’ request under the Capital Requirements Regulation (CRR3). In this Report, the EBA calls for an alignment of EU rules with the present Basel framework. Continue reading…