INSIGHT · IN
China central bank adviser flags AI risk: may deepen supply-demand imbalance in markets
A People's Bank of China policy adviser warned that AI systems in financial markets could amplify supply-demand mismatches and volatility if algorithms make correlated trading decisions or fail to respond to structural shifts. Echoes IMF and BIS concerns.
WHY IT MATTERS
BFSI traders and risk officers should expect tightened AI governance from PBOC, PRA, RBI on algorithmic trading, market-making, and liquidity provision. Expect margin/capital rules to shift against model-dependent strategies; diversification and human override mandates coming.
Source: Business Standard · 2026-09-19