Bank of England plans to ease capital rules despite AI stability fears

According to The Guardian, the Bank of England is moving to loosen the capital rules it imposed on major UK lenders after the two thousand eight financial crisis, trimming the financial cushions banks must hold to absorb losses and shield consumers and taxpayers. The timing is awkward: members of the bank's own financial policy committee voiced concern this week about growing threats to stability, pointing to the rapid pace of AI developments and a wave of debt-fuelled stock investments. So the central bank is easing the buffers even as some of its policymakers warn the risks around them may be building.

Listen to this story

Hear this and more stories in a personalized audio briefing.

Open The Chonkerton