Description

Abstract

Banking supervisors worldwide have identified a strong need to harness frontier technologies, such as Artificial Intelligence (AI), due to their potential for increased efficiency and enhanced cognitive and analytical capabilities. As the EU banking supervisor, the European Central Bank (ECB) recognised the opportunities presented by supervisory technologies as a critical element of its strategic vision for banking
supervision. However, the move towards AI-driven banking supervision raises concerns about legality, transparency, and accountability in administrative procedures, especially for the ECB as a public institution within a democratic order based on the rule of law.

This study examines the tensions between AI-based decision-making systems and the EU principle of ‘good administration’, a fundamental right enshrined in the EU Charter of Fundamental Rights. The study explores what good administration entails for the ECB in the context of banking supervision and analyses how AI-driven banking supervision may affect it. Drawing from the recently proposed EU AI Act, the study presents a normative framework for regulating AI systems based on specific risks to good administration, focusing on transparency/explainability and accountability requirements.

About the Speaker

Alessio is a Research Associate at the Centre for Banking & Finance Law, NUS. Before joining NUS, Alessio was a Research Associate at the Institute of Law & Economics of the University of Hamburg, where he is also pursuing his doctoral studies in Law. Alessio is a ‘hybrid’ researcher at the intersection of the scientific fields of Law, Finance, and Technology. His current research focuses on the implications of technological innovation for banking, payments, and capital markets law from an interdisciplinary perspective. He is also part of the European Banking Institute Young Researchers Group since August 2019 and is currently actively involved in international research networks on AI law and policy.