financial stability

Central bankers warn AI boom risks painful repricing

At the European Central Bank's annual forum in Sintra, Portugal, which concludes today, economists and central bankers delivered pointed warnings that the artificial intelligence investment boom could end in a destabilizing market correction if returns fail to materialize on the…

BoE floats market-wide ‘kill switches’ for AI trading

Artificial intelligence dominated discussions at the European Central Bank's annual forum in Sintra, Portugal, this week, with central bankers from both sides of the Atlantic warning that the technology poses risks to financial stability that existing regulations are ill-equipped to…

IMF warns AI’s debt-fueled boom poses systemic risk

Global financial regulators are sounding an increasingly urgent alarm about the debt-fueled nature of the artificial intelligence boom, warning that leveraged financing across the AI supply chain now poses a greater systemic threat than stretched equity valuations alone.

BIS warns retail investor surge could amplify recession

The Bank for International Settlements has warned that surging retail investor participation in equity markets, combined with highly leveraged hedge funds operating in bond markets, poses heightened risks to global financial stability and could amplify the economic fallout from a…

BIS warns AI boom dwarfs past bubbles, urges action

The Bank for International Settlements has sounded an alarm over a convergence of threats to the global economy, warning that surging AI investment, ballooning public debt, and deepening financial fragilities demand urgent action from policymakers worldwide.

BIS warns high debt leaves nations exposed to bond crises

The Bank for International Settlements has warned that elevated government debt levels are leaving countries increasingly vulnerable to sudden bond market turmoil driven by hedge fund fire sales, echoing the 2022 UK gilt crisis that erupted under former Prime Minister…