Money For the Rest of Us · Wednesday, September 9, 2026
Andrew Bailey, Governor of the Bank of England and Chair of the Financial Stability Board, warned that frontier AI models pose a systemic risk to the financial system due to their potential to alter the speed, scale, and economics of cyber threats. He highlighted concerns about cross-border contagion and concentrated third-party service providers.
“Andrew Bailey, he's the the governor of the Bank of England, equivalent to the federal reserve chair. And he is also chair of the financial stability board, which was set up after the great financial crisis to, essentially monitor systemic risk for central bankers and for treasury secretaries and other government officials.”
“Frontier AI may have the ability materially to alter the speed, scale and economics of cyber risk, which could undermine market confidence systemically. Especially due to highly concentrated third-party service providers.”
“He's worried about a hack and that it spreads from, let's say one country to another because of how interrelated the financial system is.”