Template-Type: ReDIF-Paper 1.0
Author-Name: Fernando Perez-Cruz
Author-X-Name-First: Fernando
Author-X-Name-Last: Perez-Cruz
Author-Name: Kumar Rishabh
Author-X-Name-First: Kumar
Author-X-Name-Last: Rishabh
Author-Name: Ayush Uchil
Author-X-Name-First: Ayush
Author-X-Name-Last: Uchil
Title: Supervisory screening with large language models: finding divergences
Abstract: We develop a procedure based on large language models to help supervisors review prospectuses against capital rules. This procedure ranks potential divergences for their consideration. We apply it to Additional Tier 1 (AT1) prospectuses from European global systemically important banks. We validate the procedure on anonymised documents from Credit Suisse and Yes Bank, recovering rule-prospectus differences that later mattered in disputes over AT1 loss absorption. This procedure could support other supervisory comparisons, including reviews of national rules against the international standards they implement.
Length: 8 pages
Creation-Date: 2026-08-26
File-URL: https://www.bis.org/publ/bisbull134.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/bisbull134.htm
File-Format: text/html
Number: 134
Handle: RePEc:bis:bisblt:134