Monetary Authority Issues

I was just at a talk with a governmental Monetary Authority, and a discussion surfaced about what issues kept them at night. I thought it was a fascinating view of the world I seldom interact with, and they included:

  • Credit worthiness and assessment: Issues include people that previously have no credit history whatsoever, people that have a credit history but going to a different country, or a smarter more accurate way of assessing credit worthiness
  • More accurate financial modeling and scenario planning: for banks to better understand and track risk scenarios
  • Fraud detection/cybersecurity: This is an obvious issue, as hackers become more sophisticated
  • Risk compliance culture: How to increase and promote a more risk compliant culture