The UK’s central bank warned that artificial intelligence poses escalating risks to financial stability. Even as it relaxes capital requirements, British authorities described the push for AI in finance as an uncontrolled competition.
The European Central Bank ordered banks to draft emergency plans for technology failures. Separately, Hometown Financial agreed to purchase Primary Bank and convert it to a publicly traded model. Regulators flagged growing credit concerns at Small Business Bank, which may face receivership. Revolut applied for a American license and permission to issue digital currency as European digital banks struggle in the U.S. financial sector.