What if AI boom busts? 22% of assets would be with 110 weak lenders: IMF

More global banks would be pushed to the brink in a doomsday scenario compared to a year ago, according to the International Monetary Fund, which said AI-related challenges could imperil banks even as profits soar.

The IMF’s latest stress test examined how banks would cope with an AI crash, soaring government bond yields and an economic slowdown. Under this scenario, 22% of global banking assets would be held in 110 “weak” lenders, whose core capital ratio would fall below 7%, or a higher threshold for the world’s most complex banks.