Large‑language models (LLMs) are generative AI systems trained on vast text corpora. In banking they are used to analyze and generate text, summarize documents, answer questions and support natural‑language interfaces. The Bank for International Settlements notes that central banks and financial institutions use LLMs for monetary analysis, supervision, payment oversight and producing reference statistics. Because LLMs often hallucinate, retrieval‑augmented generation and small language models are employed to improve accuracy.

 

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