Regulatory Alerts2026-07-07
Added · Updated
Financial Policy Committee Record – July 2026
The Financial Policy Committee warns that vulnerabilities in risky asset valuations, sovereign debt, and private credit remain pronounced, with increased leverage in equity markets amplifying risks from Middle East conflicts and frontier AI developments. The Committee highlights that rapid advances in frontier AI capabilities significantly heighten cyber and operational resilience threats, requiring firms to accelerate vulnerability remediation and coordinate with authorities. Additionally, the FPC maintains the countercyclical capital buffer at 2% and outlines plans to modernize the bank capital framework to ensure the UK financial system remains resilient and supportive of economic growth.
Topics
Share