The European Central Bank, ECB, is considering reviewing banks’ lending to data centers to assess the risks associated with fluctuations in valuations in the AI sector. Bloomberg News reports this, citing sources familiar with the matter.
The review could cover banks’ assessments of future cash flows, collateral valuations and credit losses. No decision has yet been made on the framework. According to the European Banking Authority, banks’ direct exposure to a potential AI crash is considered limited, as less than 4 percent of EU banks’ total exposure relates to the information and communications technology sector as a whole.
