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[BUSINESS] · United States, United Kingdom, South Korea, China · 22 sources

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Banking regulators intensify AI scrutiny over financial stability risks

Banking regulators in the United States and Europe are intensifying their scrutiny of artificial intelligence to mitigate risks to global financial stability. Key US institutions, including the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC), are questioning lenders about their use of advanced AI models, specifically regarding the deployment of Chinese-developed technology and the management of autonomous AI agents.

In Europe, the Bank of England and the European Central Bank are urging banks to strengthen their recovery plans to address potential market disruptions caused by rapid AI advancements. Concerns center on the potential for sophisticated cyberattacks, the risks posed by rogue AI agents, and the heavy reliance on external technology providers.

Industry warnings have been heightened following reports of security breaches, such as a suspected hack on South Korean banks involving a Chinese-developed AI agent and Anthropic’s Claude Code. Regulators are particularly focused on whether banks can maintain control over increasingly autonomous systems and if they can effectively respond to AI-driven cyber threats.

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Bank of England · CrowdStrike · Deloitte · European Central Bank · Federal Reserve · JPMorgan Chase

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