BoE/PRA: Response to HMT, DSIT and DBT on AI in financial services

BoE and PRA have published the text of its response to a letter from Government departments which discusses their plans to enable safe AI innovation, including planned work for 2026.  BoE notes that it will continue to consider potential reforms to enhance the resilience of liquidity provision in stress, continuing to work in collaboration with FCA, and will also explore changes in market structure that would support more prudent risk management practices and margining in the non-centrally cleared gilt repo market to enhance system-wide resilience.