Bank of Japan warns of risks from AI market shock, cyberattacks

Source: The Business Times
Published on: 2026-10-23 10:15

Rising property and stock prices warrant careful attention, given still-low interest rates, it adds [TOKYO] The Bank of Japan (BOJ) warned on Friday (Oct 23) of rising risks caused by artificial intelligence, including growing cybersecurity threats and potential market shocks, that could spill over to the country's banking system. While the BOJ noted in its semi-annual report it did not see any major financial imbalances, it said rising property and stock prices warranted careful attention, given still-low interest rates. Japan's financial system may have become more susceptible to global market fluctuations as domestic banks have steadily increased lending to foreign non-bank financial institutions (NBFIs), which are big hyperscaler funders, the BOJ said in the report on Japan's banking system. "If expectations regarding the profitability of AI-related investment were to decline, sh...

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