And when I say supervisors should be adaptive, what I mean is to acknowledge the fact that existing regulation was often drafted with a different world in mind, that this regulation cannot always be literally applied to the new digital world. Adaptive then means to act from a set of core principles.
To apply them in a way that fits the new environment and leaves space for innovation. While continuing to protect customers and financial stability. To give you an example, two months ago we published a discussion paper called ‘General principles for the use of Artificial Intelligence in the financial sector’.