FSB Flags AI-Driven Leverage and Sky-High Asset Prices as Global Financial Risks
The Financial Stability Board warned the G20 that AI-driven leverage, inflated asset valuations, rising private-credit vulnerabilities, and mounting government debt create interconnected risks that could spark a disorderly cross-border market correction, with cyber threats and cross‑investments between AI firms and hyper-scalers amplifying shocks; officials argue years of easy-money policy helped fuel these conditions and urge proactive risk management to avert a global financial instability scenario.


