Subject: Weekly round-up of Financial Stability articles

FINANCIAL STABILITY WEEKLY
TOP STORY
Financial Stability
Economists use AI to expand data on cross-border flow limits
IMF paper draws lessons from 40,000 policy moves designed to control financial flows
22 May 2026   |  Research
Monetary Policy
Book notes: The art of monetary policy, by Kristin Forbes
The message that effective monetary policy-making requires judgement, flexibility and realism alongside technical expertise is both persuasive and highly relevant
22 May 2026   |  Review
Financial Stability
AI architecture ‘a source of financial instability’ – ECB paper
LLMs and Q-learning trading algorithms both amplify market distress, researchers find
21 May 2026   |  News
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Fintech
BoE accelerates multi-money, multi-asset tokenised agenda
Breeden urges ‘earnest’ work amid systemic risks from innovations abroad
19 May 2026   |  Speech
Reserves
Helder Lopes on Timor-Leste’s transformation now the oil has run out
BCTL governor speaks about dollarisation, the Petroleum Fund, Asean membership, digitalisation and financial deepening
19 May 2026   |  Interview
Financial Stability
Lagarde at G7 meeting: ‘I always worry’ about bond markets
Leaders meet to discuss Middle East conflict, global imbalances
18 May 2026   |  News
Macro-prudential
BoT advocated targeted fiscal support, minutes show
Record of April meeting published after government approves billions in borrowing for cost-of-living relief
15 May 2026   |  News
Micro-prudential
BoE’s Woods praises competition mandate for regulators
Edict has helped UK central bank facilitate new entries into banking sector, PRA chief says
13 May 2026   |  Speech
FMI
Busting Mythos: how Europe is responding to the latest AI model
Experts emphasise heightened importance of focusing on basics
13 May 2026   |  Analysis
FMI
G7 central banks warn quantum is in ‘early stages of experimentation’
Readying financial system for Q-day is ‘not a simple substitution exercise’, say authorities
12 May 2026   |  Research

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