BIS-led banking supervisors discuss digital finance and regulation in Bali

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Banking supervisors discuss digital finance in Bali

Highlights

The 24th International Conference of Banking Supervisors in Bali on 30 September and 1 October 2026 focuses on strengthening supervisory effectiveness, modernising regulation, and managing the digitalisation of finance.
Delegates discuss reducing regulatory complexity using the Basel Committee's revised Core principles, with emphasis on proportionality, transparency, and cost-benefit analysis to maintain global financial system resilience.
Key risks addressed include AI efficiency and oversight, cryptoasset supervision, cyber attack vulnerabilities, and the operational resilience challenges from banks' reliance on third-party providers and non-bank financial institutions.

Bali conference sets supervisory agenda

As reported by the Bank for International Settlements, the 24th International Conference of Banking Supervisors is taking place on 30 September and 1 October 2026 in Bali, Indonesia, with Bank Indonesia and the Indonesian Financial Services Authority hosting the event.

Participants are discussing how to strengthen supervisory effectiveness, simplify and modernise regulation, and address the implications of the ongoing digitalisation of finance. Erik Thedéen, chair of the Basel Committee and governor of Sveriges Riksbank, delivers a keynote speech focused on strong and modern supervision.

Destry Damayanti, governor of Bank Indonesia, says the changing financial landscape, marked by stronger interconnectedness and rapid technological advances, requires a strong prudential framework backed by forward-looking and agile supervision. She also says authorities need to balance innovation with resilience and deepen cross-border cooperation to protect trust and financial stability.

Focus on AI, crypto and bank-NBFI risks

Conference discussions include judgment-led, risk-based supervision and the use of practical tools linked to the Basel Committee's revised Core principles for effective banking supervision. Delegates are also reviewing whether regulatory and supervisory complexity can be reduced without weakening the resilience of the global financial system, including through proportionality, transparency and cost-benefit analysis.

Another key theme is the effect of digital finance on banks and supervisors, including artificial intelligence, cryptoassets and operational resilience. Participants are exchanging views on AI-related risks and efficiency gains, oversight challenges tied to cryptoassets, and vulnerabilities linked to banks' dependence on a small number of critical third-party service providers and rising cyber attack risks.

Supervisors are also examining growing ties between banks and non-bank financial institutions, including synthetic risk transfers, oversight approaches and data gaps. Friderica Widyasari Dewi, chairperson of the Indonesian Financial Services Authority, says the talks reflect Indonesia's own efforts to broaden banking activities while maintaining regulatory balance to anticipate emerging risks.

Our earlier article on the Indonesia Rendezvous and Conference in Bali highlighted how insurers are using the October 2026 gathering to prepare for upcoming policy and regulatory changes. We noted that the event’s theme centres on building confidence, sustainable growth and resilience, while industry participants use the forum to exchange insights and engage directly with the market.

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