Bank of Japan warns of AI and cyber risks

The Bank of Japan warned that artificial intelligence market shocks and cyberattacks pose rising risks to the financial system. The report noted Japanese banks face increased vulnerability from foreign lending and surging property prices.

Traffic signs in front of the Bank of Japan building in Tokyo, Japan, June 15, 2026. REUTERS/Kim Kyung-Hoon

Japan's central bank warned of rising financial stability risks from artificial intelligence, including potential market corrections and cyber threats. The warning highlights vulnerabilities in domestic banking exposure to foreign non-bank financial institutions.

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