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Good AI – bad for banks?

Author

Listed:
  • Stefan Kerbl

    (Oesterreichische Nationalbank, On-Site Banking Inspections Division – Large Banks)

Abstract

Artificial intelligence is the new buzzword – and with good reason: It is reshaping the world around us. With the financial sector being particularly suited for the use of AI, we are called upon to examine the implications of AI use for financial stability. In this paper, we take a closer look at the financial stability risks that arise as banks, nonbank financial institutions, borrowers and society as a whole embrace the new technology. To do so, we compare the findings of five renowned financial institutions and discuss four different AI scenarios.

Suggested Citation

  • Stefan Kerbl, 2025. "Good AI – bad for banks?," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 50, pages 1-13.
    • Handle: RePEc:onb:oenbfs:y:2025:i:50:b:1
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    Keywords

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    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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