#Central Bank

The Bangko Sentral ng Pilipinas (BSP) recently announced how it explores applications of machine learning (ML) techniques, particularly in the areas of natural language processing, nowcasting, and banking supervision. "Central banks’ interest in ML has been increasing over the years, mainly due to its potential to enhance the existing tools used for regular monitoring as well as its ability to uncover underlying relationships between data to better understand the economy and the financial system," said BSP Governor Benjamin E. According to a study published by the Bank of International Settlements (BIS), some 80 percent of respondents from the 52 central banks surveyed discuss the topic of big data formally within their respective institutions. These models supplement the central bank's existing suite of models for macroeconomic forecasting. In banking supervision, meanwhile, the BSP looks into utilizing ML techniques to enhance its data validation processes and better identify atypical data. The central bank has also invited the company to apply for registration before continuing with its activities. With that said, Diokno mentioned that the central bank ordered Lyka to suspend its activities as an OPS, urging them to register first. Otherwise, those who fail to comply may be ordered to stop operations until immediate action is taken to register with the central bank. Read more in our articles including "BSP looks into machine learning, AI as financial tools" and "BSP orders Lyka to stop operations as OPS, urges registration".