Asia-Pacific central banks have agreed to strengthen cooperation on artificial intelligence and scam prevention as financial authorities grapple with emerging risks to consumers and the region’s financial systems, the Bangko Sentral ng Pilipinas (BSP) said.
BSP Governor Eli Remolona Jr. and his counterparts approved initiatives to strengthen consumer protection and help financial institutions manage the opportunities and risks of AI during the Executives’ Meeting of East Asia Pacific Central Banks (EMEAP) in Singapore.
Among the initiatives is creating a task force to facilitate information-sharing among central banks to improve scam prevention and detection.
The central banks will also focus on helping the financial industry harness the benefits of AI while managing risks associated with its growing use.
Remolona emphasized the importance of regional cooperation amid challenges confronting financial systems and economies in the region and globally, according to the BSP.
The July 23 meeting also endorsed launching a training program on central bank policy and operations for junior central bankers.
AI was also a key focus at the 15th Informal Meeting of EMEAP Governors and Heads of Supervisory Authorities held in Singapore on July 24.
Remolona and other central bank governors and financial regulators exchanged best practices and insights on financial institutions’ responsible adoption and use of AI.
Participants recognized the importance of responsible AI use in safeguarding financial consumers while enabling financial institutions to manage risks effectively and take advantage of the technology’s opportunities.
The discussions come as banks and other financial institutions increasingly deploy AI for areas ranging from customer service and fraud detection to risk management and operational processes, prompting regulators to consider the implications for financial stability and consumer protection.
Central bank governors and financial regulators also discussed the macro-financial implications of supply disruptions in the region.
EMEAP is a cooperative forum comprising 11 central banks and monetary authorities in East Asia and the Pacific.
The group provides a platform for policymakers to exchange views on economic and financial developments and coordinate work on monetary and financial stability issues.
The initiatives signal a shift toward greater regional coordination as AI and increasingly sophisticated scams create risks that can cross national borders.
Information-sharing among central banks could strengthen fraud detection, while cooperation on responsible AI may help regulators develop more consistent approaches without limiting financial institutions’ ability to adopt the technology.
For banks and fintech firms, the discussions also point to growing regulatory expectations around AI governance, consumer protection and risk management as adoption accelerates.
