The UK’s central bank warned that AI poses escalating risks to the stability of markets. Even as it relaxes capital requirements, UK regulators described the rush to adopt AI in finance as an "arms race".
The ECB ordered banks to prepare emergency plans for AI-driven disruptions. Separately, the acquiring firm agreed to purchase the New Hampshire lender and convert it to a stock structure. Regulators noted rising loan risks at Small Business Bank, which may be closed by authorities. Revolut applied for a U.S. banking charter and stablecoin approval as European digital banks struggle in the American market.