Harnessing artificial intelligence for monitoring financial markets

Report

Harnessing artificial intelligence for monitoring financial markets

By Bank for International Settlements (BIS)

Predicting financial market stress has long proven to be a largely elusive goal. Advances in artificial intelligence and machine learning offer new possibilities to tackle this problem, given their ability to handle large datasets and unearth hidden nonlinear patterns. This paper develops a new approach based on a combination of a recurrent neural network (RNN) and a large language model.

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