Dr. Jalan said “the move towards universal banking would not provide a panacea for the endemic weaknesses of a DFI or its liquidity and solvency problems and/or operational difficulties arising from under-capitalization, non-performing assets, and asset liabilities mismatches etc.
It is important for firms to recognize the possible pitfalls and employ sound controls now to prevent and mitigate possible future problems. For our part, we are still learning how AI tools can be used in the banking sector.