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Recent Editions
Risk Channel
North America
The Financial Stability Board (FSB) has warned that 15 of 19 major jurisdictions lack fully compliant emergency funding mechanisms to manage large bank failures, raising concerns about global financial stability. Its review found that only the United States, United Kingdom, Japan, and Hong Kong fully meet its recommendations for providing temporary liquidity to failing banks. India and Argentina were deemed completely non-compliant, while Australia, China, the European Union, Switzerland, and several other jurisdictions were identified as materially non-compliant. The watchdog highlighted weaknesses in the scale, reliability, and availability of emergency funding, warning that these gaps could complicate bank resolutions and increase the risk of government intervention. Citing the 2023 Credit Suisse rescue, the FSB urged governments to strengthen financial safeguards and establish credible liquidity backstops before another major banking crisis.
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Risk Channel
UK/Europe
Henna Virkkunen, Executive Vice-President of the European Commission for Technological Sovereignty, Security, and Democracy, has told Reuters that the bloc is "well equipped" to tackle AI-enabled rogue agents. "We see that the safety and security of very capable models is a very hot topic internationally and we in Europe are well equipped for that . . . We have our AI Act in place and the AI Act covers the whole life cycle of these models," Virkkunen said. She added: "Our legislators and decision makers, I think that they have been taking into account very well already the coming developments, for example how they saw that the risks have to be assessed and external experts have to be used and they have to continue monitoring the models."
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