IMF’s Gita Gopinath highlights role of resilient capital markets and AI at IMF-IOSCO Conference

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Deputy Managing Director of the International Monetary Fund (IMF), Gita Gopinath, underscored the vital importance of resilient and stable capital markets in fostering economic growth by enabling the efficient allocation of resources. Robust markets, she noted, empower businesses to expand, help governments finance critical projects, and support individuals in achieving their financial goals.

Gopinath delivered the opening remarks at the second Annual IMF-International Organization of Securities Commissions (IOSCO) Conference on Market-Based Finance, during the 2005 IMF-World Bank Spring Meetings, held on April 21, 2025, at IMF Headquarters in Washington D.C.

She remarked, “Today’s conference offers conversations among senior policy makers and regulators, industry and academics, and they’re all going to focus on key topics in capital markets. I’m just going to list a couple.”

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One major focus of the conference, according to Gopinath, is the growing use of Artificial Intelligence (AI) in capital markets – particularly generative AI – and the opportunities and risks it presents. She noted that while AI can enhance efficiency and improve supervisory processes, it also raises concerns such as increased market volatility, reduced accountability, and over-reliance on a small number of third-party vendors. In response, she emphasized the need for regulatory and supervisory frameworks to evolve in line with technological change.

Another key theme was the transformation of investment management, notably the rise of Exchange-Traded Funds (ETFs). Gopinath highlighted how ETFs have evolved from passive investment tools into active strategies offering diverse risk-return properties.

“ETFs may reduce investors liquidity risk, and therefore that provides a benefit among many others,” added Gopinath. “But at the same time, it is important to remain vigilant regarding potential vulnerabilities and to consider what measures need to be taken to support market stability.”

Gopinath also emphasized the significance of the IMF-IOSCO partnership in advancing global macroeconomic and financial stability through policy development, surveillance, and capacity building. She said the conference aimed to stimulate thoughtful discussion and further strengthen collaboration between the organizations.

The conference featured two panel discussions and a fireside chat. The opening panel, “Trends in Artificial Intelligence and Implications for Financial Stability,” was moderated by IOSCO Secretary-General Rodrigo Buenaventura and participated by global experts.

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