
Balance is the “golden rule” of a healthy financial system. Trust serves as the true “currency” of capital markets. Without trust, innovation remains a high-risk experiment, unlikely to attract institutional capital or achieve broad adoption.
In an era where capital and financial markets are evolving rapidly, the use of Artificial Intelligence (AI) and financial products is becoming increasingly complex. The need for a strong and well-structured capital markets framework is not merely desirable, it is absolutely essential. The existence of a legislative, administrative, regulatory compliance and corporate governance framework in financial law, along with clear operational and administrative procedures, form the foundation upon which credibility and, by extension, investor and public trust, is built. The role of competent government authorities is to ensure the proper functioning of capital and financial markets.
Modern capital and financial markets are no longer limited just to the simple provision of investment products and financing tools. Instead, the capital, financial markets and investment products are required to address complex needs, particularly in cases where traditional bank lending is insufficient. In this context, structured finance emerges as a critical tool, enabling the development of tailored solutions that transform cash flows, reshape liquidity, and facilitate the implementation of infrastructure development projects with significant economic and social impact….
Find the full interview:
https://www.cbn.com.cy/article/128729/why-balance-in-innovation-and-artificial-intelligence-ai-is-the-key-to-building-trust-in-capital-markets

