Archive for April 27th, 2020

Impact of AI and Machine Learning on Bank Supervision

April 27, 2020

Good to read something different from central bankers.

James Proudman of Bank of England in this speech discusses how AI and ML are changing bank supervision:

Technology is rapidly changing the world around us. As prudential regulators, we need to understand the impact of that technology. First and foremost, we need to understand its impact on the firms we supervise – and the financial system as a whole – if we are to understand properly risks to financial
stability, and safety and soundness – just as we have always done. There is nothing new in this.

But what is new is the need – and opportunity – to take advantage of the new technology in our own business processes to change the way supervision is done. Providing answers to the questions I have outlined in the preceding remarks will help us to know how far we might, in time, go in introducing technology into supervision, and provide a road map for the future of how prudential supervision could be done.

What is the opportunity for supervisors and supervised firms?

How might this transformation impact the ‘day job’ and skills of supervisors?

The aim is ‘human centred automation’: using technology to free up supervisors’ time to focus on where they can add the highest value – making supervisors’ jobs more productive, more insightful and more rewarding.

To do so is likely to require some change in skills – incorporating more quantitative and analytical skills – without altering the fundamental ability to apply judgement to assess key risks to firms’ safety and soundness and evaluate practical mitigants.

And how might changes like those I have described impact firms’ experience of being supervised? For the better, I believe. Smarter, quicker supervision should generate fewer costly ad hoc data requests from firms; and generate better-informed, more timely and more insightful supervision.

 

How did WHO become a Chinese Health Organisation?

April 27, 2020

Brahma Chellaney in this Proj Synd piece:

China did not always enjoy deferential treatment from the WHO. When the first twenty-first-century pandemic – severe acute respiratory syndrome (SARS) – emerged from China in 2002, the agency publicly rebuked the Chinese authorities for concealing vital information in what proved to be a costly cover-up.

Why has the WHO changed its tune? The answer is not money: China remains a relatively small contributor to the WHO’s $6 billion budget. The issue is the WHO’s leadership.

Tedros, who became the agency’s first non-physician chief in 2017 with China’s support, was accused of covering up three cholera outbreaks while serving as Ethiopia’s health minister. Nonetheless, few would have imagined that, as WHO chief, the microbiologist and malaria researcher would be complicit in China’s deadly deception.

The WHO’s faltering response to the 2014 Ebola outbreak underscored the imperative for reforms before Tedros was at the helm of the agency. But, rather than overseeing the needed changes, Tedros has allowed political considerations to trump public health.

As the costs of the mismanagement continue to mount, a reckoning is becoming all but inevitable. An online petition calling for Tedros to resign has garnered almost a million signatures. More consequential, President Donald Trump’s administration has suspended the WHO’s US funding, which accounts for 9.2% of its budget.

The world needs the WHO. But if the agency is to spearhead international health policy and respond to disease outbreaks effectively, it must pursue deep reforms aimed at broadening its jurisdiction and authority. That won’t happen unless and until the WHO rebuilds its credibility beginning with new leadership.

Surprised to see WHO DG continue to be in the job…Even more surprised how one individual has undermined years of efforts..

Webinar on COVID-19 Pandemic and Fiscal Federalism in India

April 27, 2020

Gulati Institute of FInance and Taxation is Live streaming a webinar on the topic.  It has few State Finance Ministers participating in the discussion..

Cash rich firms in the time of corona

April 27, 2020

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