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