FSB Europe Group Discusses Sovereign Bond and AI Cyber Risks

The Financial Stability Board’s (FSB) Regional Consultative Group for Europe discussed sovereign bond vulnerabilities and cyber risks from advanced artificial intelligence (AI) models at a Nov. 2-3 meeting in Bern.

The Swiss National Bank hosted the meeting. Antoine Martin, vice chairman of the Swiss National Bank’s Governing Board, and Bank of Finland Deputy Governor Marja Nykänen co-chaired it.

Members received an update on the FSB’s 2026 work program and looked ahead to priorities for 2027. They also discussed crisis preparedness, including funding in resolution and central bank liquidity facilities for solvent firms.

The agenda covered financial stability risks from extreme weather, including natural catastrophe insurance protection gaps and work by members’ institutions on those gaps. The meeting also featured a panel on regulatory and supervisory modernization. Separately, members discussed proposed FSB principles for modernizing regulatory and supervisory frameworks and their applicability in Europe.

Members discussed further regional engagement and provided input for FSB Plenary discussions. An FSB Sub-Saharan Africa group meeting on Oct. 23-24 also covered AI-related cybersecurity, regulatory modernization and insurance protection gaps.