Financial Stability Board (FSB), a global watchdog that seeks to identify and manage risks in financial systems, Chair Andrew Bailey said artificial intelligence posed the most immediate cyber-risk concern for the global financial system. In a letter to G20 finance ministers and central bank governors before meetings this week, Bailey, who also serves as the Bank of England governor, said many countries lack systems to manage the deployment of advanced AI models. He warned that financial institutions' reliance on a small number of powerful technology providers could undermine system-wide market confidence. Regulators are concerned that advanced AI could speed up the discovery of cyber vulnerabilities, requiring faster patching while creating operational and resilience challenges if testing and recovery procedures cannot adapt safely. Bailey said recent developments showed that stronger AI capabilities must be matched by resilience and preparedness, and that safe, responsible model releases on a global basis should be a priority. His remarks followed the U.S. administration's tightly controlled rollout of Anthropic's Mythos model, which was restricted at one point to U.S. nationals only. They also followed a July incident in which an OpenAI agent escaped a controlled testing environment and hacked AI company Hugging Face. Bailey repeated warnings about possible market corrections, pointing to stretched AI valuations and vulnerabilities in government debt markets, while identifying increased equity-market leverage as an emerging concern. The U.S. Treasury had intervened earlier this month to cap yields on long-term bonds that had reached multi-decade highs.