FSB opens public comment on AI sound practices for banks
Financial institutions can comment on the consultation report through the public period before the final G-20 deliverable later this year.
Vice Chair for Supervision Bowman introduced the Financial Stability Board's consultation report on Sound Practices for Responsible Adoption of Artificial Intelligence, noting that the report is now open for public comment and is slated to become a U.S. G-20 deliverable later this year.
The report, produced by the FSB Secretariat with contributions from the Monetary Authority of Singapore and collaboration from U.S. Treasury and SEC staff, outlines governance and control frameworks for AI use in financial institutions, emphasizing materiality and proportionality across banks of all sizes.
Bowman stressed that the practices presented are illustrative rather than mandatory, and that lower-risk AI applications should receive a lighter supervisory and regulatory touch, while higher-risk uses warrant stronger safeguards.
He invited commenters to identify any sections that may be overly prescriptive, any material risks insufficiently addressed, and any imbalances in proportionality that could affect smaller institutions, aiming to refine guidance that supports responsible innovation.
Feedback gathered during the public comment period will inform the final report that the United States will present to the G-20 presidency later this year.