Since maturity transformation is an inherent feature of commercial banks' business model, some duration mismatch between assets and liabilities is unavoidable.
For the purposes of capital regulation, banks should be required to mark their holdings of Treasury and Agency securities to market at all times (even though their loans are not marked to market).
If countries could impose a ban on the use of ChatGPT and similar generative AI chatbot services that is technologically effective, they would experience a measurably negative impact on national innovation.
Regardless of whether advances in AI spur productivity growth, they are likely to create deep challenges for society – in areas from labor markets to politics, and including disinformation, privacy, crime, and warfare – that will be difficult to anticipate, plan for, and contain.
