AI-based Real-time and Early Detection of Financial Institution Vulnerabilities in Hong Kong

Supervisory Technology (SupTech) has been catching the attention of regulators around the world. In 2021, the Hong Kong Monetary Authority (HKMA) proposed a 3-year roadmap for SupTech adoption to enhance the current supervisory framework. In line with the supervisory expectations and progress, this project aims to develop a SupTech application to perform three main tasks:

  • Real-time monitoring

  • Risk profile prediction

  • Relative vulnerability index

Real-time monitoring

Provides up-to-date performance of financial institutions and market sentiment

Risk profile prediction

Predicts risk profile of financial institution using financial ratios based on the CAMEL rating system

Relative vulnerability index

Compares financial institutions within selected peer groups to identify potential vulnerabilities

Supervisor: Dr. Liu Qi

Group members:

  • Lee Man Kit
  • Chan Chun Ho
  • Chen Hsin-mei
  • Chang Hsi-yun