BofA adds digital-asset research coverage

Machine learning for stress tests comes with complexities | BofA adds digital-asset research coverage | Nonbanks increasingly moving into C&I lending Created for {EMAIL} | [Web Version]( October 6, 2021 [SIGN UP]( ⋅ [SHARE]( [] Risk Management and Insurance [] [Machine learning for stress tests comes with complexities]( More banks are using machine learning techniques for stress-testing models related to the annual Comprehensive Capital Analysis and Review, but explaining the complexity of how it works to regulators remains challenging. Evan Sekeris, a former Federal Reserve stress-testing official, says that with machine learning, banks "don't have the equations, and it can become so complex that there's no way to interpret it." Full Story: [Risk (subscription required)]( (10/5) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] [BofA adds digital-asset research coverage]( Bank of America has begun digital-asset research coverage, saying that the $2 trillion market is "too large to ignore" and that cryptocurrency-based digital assets could result in an asset class. Digital assets and blockchain technology saw more than $17 billion in venture capital investment during the first half of 2021, creating a "generation of companies for digital assets trading, offerings and new applications across industries, including finance, supply chain, gaming and social media," according to BofA. Full Story: [BNN Bloomberg (Canada)]( (10/4), [Reuters]( (10/4), [CoinDesk (UK)]( (10/4) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] [Nonbanks increasingly moving into C&I lending]( Nonbank lenders are increasingly moving beyond retail services into commercial and industrial lending. Nonbanks' C&I loan market share is poised to equal that of banks for the first time ever by the end of this year, according to projections by Autonomous Research. Full Story: [American Banker]( (10/4) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] - [IMF warns of "cryptoization" peril for emerging markets]( Reuters (10/1) [] - [Google abandons plan to offer bank account]( CNBC (10/2) [] Cybersecurity [] [Report: Enterprises growing comfortable with the cloud]( More companies are becoming comfortable with moving mission-critical work processes to the public cloud, finds an annual report from the Uptime Institute. One-third of respondents say they have moved critical operations to the cloud, up from 26% in 2019. Full Story: [Network World]( (10/4) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] Government Regulation [] [US eyes bank-like rules for stablecoins]( The US President's Working Group on Financial Markets is expected to recommend this month that crypto banks be given limited charters to manage stablecoins as deposits, and impose bank-like rules on firms that issue such instruments, sources say. The group will also ask the Financial Stability Oversight Council to consider designating stablecoins as systemically important. Full Story: [The Wall Street Journal]( (10/1), [BNN Bloomberg (Canada)]( (10/1) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] - [WSJ: Bank transaction reporting plan is threat to privacy]( The Wall Street Journal (10/4) [] Innovation [] [FirstBank to test real-time settlement services]( FirstBank is working on implementing the Federal Reserve's FedNow settlement service and The Clearing House RTP service. "In doing RTP and FedNow at the same time, we found many similarities in terms of operating rules and specifications, and that minimizes the effort to a certain degree," said senior vice president Tony Cook. Full Story: [American Banker]( (10/1) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] [] One of the greatest things you have in life is that no one has the authority to tell you what you want to be. Jaime Escalante, educator National Hispanic Heritage Month is Sept. 15 to Oct. 15 [LinkedIn]( [Twitter]( [Facebook]( [Email]( LEARN MORE ABOUT Aon Financial Institutions: [Aon Home Page]( | [Aon Financial Institutions]( [Thought Leadership]( | [Media Room]( About Aon Financial Institutions The Aon Financial Institutions Practice develops risk transfer and consulting solutions for a wide range of businesses including banks, insurance companies, asset managers and diversified investment and finance firms. 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