Does AI create market risk?

Weekly Edition | By Rachael Kennedy

Welcome to The Global Treasurer's latest Weekend Digest, your go-to source for the week's top insights and updates tailored for treasury professionals. What are the most popular articles from this week? We've put together a list, so you never miss out. In this issue, you'll find:

• Banks Test New Digital Standard: Surecomp, BNP Paribas, and Vanderlande pilot Swift-ICC API connectivity for automated bank guarantees, marking key advance in trade finance.
• Real Estate Defaults Surge: Office loan delinquencies hit 11% at major banks despite sector stability, raising concerns about structural changes.
• AI Creates Market Risks: FSB warns identical AI models across financial institutions threaten diversification and could amplify market stress.

We’re here to ensure you stay informed, inspired, and ready to tackle the week ahead.

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TOP READS

NEWS

Surecomp, BNP Paribas, and Vanderlande Launch New Corporate-to-Bank Connectivity Standard

Surecomp, BNP Paribas, and Vanderlande have successfully piloted a new Swift-ICC API-based connectivity standard for bank guarantees, enabling real-time, automated exchange of guarantee requests without manual processing. The initiative, using Surecomp's RIVO™ platform, aims to streamline corporate-to-bank interactions through XML-formatted open APIs, particularly benefiting companies with lower transaction volumes. BNP Paribas hails it as a "significant industry milestone" in trade finance digitalization. Read More

NEWS

Big Banks Face 11% Default Rate in Commercial Real Estate Test

Despite overall banking sector stability, office loan defaults at major U.S. banks have surged to 11%, marking the highest commercial real estate delinquency rates since 2014, according to the Federal Reserve's latest supervision report. While 99% of banks remain "well capitalized" with stable liquidity and improved earnings, mounting stress in commercial real estate and rising consumer credit defaults signal potential structural challenges, particularly for smaller regional banks with concentrated property exposure. Read More

NEWS

AI Has Rendered Diversification Strategies Less Effective

The Financial Stability Board warns that widespread adoption of similar AI models across financial institutions threatens traditional diversification strategies, as banks using identical AI infrastructure and data sources may react simultaneously to market events. The FSB report highlights three key risk factors: concentrated AI infrastructure providers, reliance on off-the-shelf models, and overlapping training data. This "technological monoculture" could amplify market stress during crises, as AI systems make instantaneous, synchronized decisions across multiple institutions. Read More

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