Banking watchdogs ramp up AI scrutiny as stability fears mount

The Fed, OCC and FDIC are quizzing banks on agentic AI, Chinese-developed models and controls over autonomous systems. The Bank of England and ECB are pressing lenders for recovery plans against AI-enabled cyber threats, though regulators are still gathering information rather than imposing rules.

• Fed, OCC and FDIC ask banks about agentic AI, Chinese models and limits on autonomous systems
• Bank of England pushes largest banks to examine bare metal recovery plans
• ECB set an end-October deadline for plans against AI-enabled cyber threats
• Recent hacks of South Korean banks and Hugging Face involved AI agents