India's central bank has identified soaring AI stock valuations globally as a financial stability risk, warning of potential market spillovers. Despite this, the Reserve Bank of India asserts that India's banking system remains robust, well-capitalised, and resilient to external shocks. Strong macroeconomic fundamentals and healthy balance sheets in both banks and non-banking financial companies provide a solid foundation, limiting the impact of global financial stress on the domestic economy.

Bank for International Settlements says AI funding is funnelled through loosely regulated private credit channels, raising stability fears.

The Bank for International Settlements flagged AI capex, circular financing deals, and poorly disclosed asset pledging as systemic risks in its annual report.

The Bank for International Settlements (BIS) has cautioned about the financial dangers linked to the rapid growth of AI, pointing to issues of overinvestment and high valuations.…

AI-powered cyberattacks are India's top financial system risk, according to the RBI's latest report. Banks and NBFCs are most concerned about these sophisticated threats, though…