Bank of England's FPC Expresses Concerns Over Geopolitical and AI Risks to Financial Stability

The Bank of England's Financial Policy Committee (FPC) published the record of its September 25 meeting and results from a Systemic Risk Survey. The FPC noted increasing concerns regarding the interaction of geopolitical shocks, sovereign debt vulnerabilities, AI-related risks, and leverage in market-based finance. Despite these concerns, the Committee assessed the banking system as resilient and deemed increases in capital requirements unnecessary.