banking regulators

The Governor of the Bank of England has warned that the rapid surge in AI-related investment could provoke sudden shocks in financial markets. He cautioned that valuations tied to artificial intelligence may be overstretched, and a sharp correction could ripple through the wider economy. The comments echo growing concern among regulators about concentrated tech market exposure.

The Bank Policy Institute argues that banks should be able to rely on the Federal Reserve's discount window for emergency liquidity, but only if regulators make it easier for them to do so. The piece contends that supervisory stigma and operational barriers still deter healthy banks from pre-positioning collateral and testing access, leaving the financial system more fragile in a crisis. It calls on regulators to support, not penalise, banks that prepare to use the window.

Tschudin, a governing board member of the Swiss National Bank, has voiced concern about the impact stablecoins could have on central banks, Reuters reported. The comments add to a growing debate among monetary authorities about how widely used dollar- and crypto-backed tokens could affect monetary policy, bank deposits and the role of central bank money.