US and European regulators question banks about AI agents and cyber risks

Banking regulators in the US and Europe are stepping up efforts to contain the risks AI poses to banks, Reuters reported, citing six people familiar with the matter. Some fear that cyberattacks or rogue AI agents could shake the financial system.

In the US, the Federal Reserve and two other bank regulators are questioning banks about how they use advanced AI, two sources said.

They want to know if banks use Chinese-built tech, use AI agents for cyber defence, and can control systems that act on their own.

Regulators also want to know what limits banks put on AI agents, whether humans still make key decisions, and how banks would shut those systems down. All three US agencies declined to comment to Reuters.

In Europe, the Bank of England and the European Central Bank are pushing banks to improve their plans for recovering from attacks, three people said.

Both...

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