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How FHLB Cincinnati is using AI to spot failing banks

The bank’s agentic model detects anomalies, monitors sentiment, and drafts credit reports for analysts to review.

A thoughtful robot is placed against a background of financial crisis charts
Credit: Risk.net montage

The failure of Silicon Valley Bank and two other regional lenders in 2023 left US regulators with red faces. But the Federal Home Loan Bank system faced something even worse—billions in red ink. 

FHLBs serve as lenders of second-to-last resort to US financial institutions of all shapes and sizes, from global systemically important banks to credit unions, community banks and even insurance companies. 

SVB, Signature Bank and First Republic Bank had borrowed a combined $69 billion from the FHLBs at

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Waters Wavelength Ep. 347: Brennan Carley

This week, Brennan Carley, who has spent more than 40 years working in financial technology, joins to discuss the hidden risks and untapped potential of agentic AI in the capital markets.

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