ECB President Christine Lagarde to Step Down in Early 2027 FRANKFURT AM MAIN — On October 29, 2026, European Central Bank President Christine Lagarde formally announced that she will step down from her position on February 7, 2027. President Lagarde has officially notified the ECB Governing Council and European Council President António Costa of her upcoming departure to ensure an orderly, transparent transition period for eurozone monetary leadership. Compliments of ECB 

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The 12 sound practices emphasise the importance of organisation-wide AI governance and highlight considerations for managing risks throughout the AI lifecycle. The sound practices aim to promote coordination, cooperation and information-sharing among financial institutions, supervisors and other stakeholders, within and across jurisdictions, as AI adoption increases. The FSB strongly encourages the board and senior management of financial institutions to reference the sound practices when developing and refining their institution’s AI governance, risk management and control frameworks. The Financial Stability...

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Energy prices to rise 32% in 2026; food commodity prices to climb 18% in 2026–27 Commodity prices are set to rise 23% in 2026 as global shocks mount, according to the World Bank Group’s latest Commodity Markets Outlook, released today. The conflict in the Middle East has drawn down oil inventories and is set to push energy prices to a four-year high. Meanwhile, disrupted grain shipments and El Niño threaten harvests and food affordability. With oil stocks depleted, the world...

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The World Bank warned of a 1.2 billion youth influx into the global job market over the next 15 years. Current economic projections indicate the global market will fall severely short, generating only 400 million available jobs. Remarks by World Bank Group President Ajay Banga at the 2026 Annual Meetings Plenary Let me begin by thanking the Prime Minister and the people of Thailand for your generous hospitality. Deputy Prime Minister, Governor—thank you for the care and hard work you and...

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In the latest bank lending survey, conducted between 21 September and 6 October 2026, banks reported on changes in bank lending conditions and loan demand from firms and households during the third quarter of 2026, along with their expectations for the fourth quarter of 2026. Further tightening of credit standards for loans to firms and consumer credit, owing to higher risks Decline in loan demand across all segments, driven mainly by higher interest rates Gradual but sustained increase in...

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The FSB finalized 12 sound practices to guide global financial institutions in responsibly adopting artificial intelligence. The framework addresses rising market vulnerabilities linked to frontier AI models. Financial institutions have long used AI tools, but rapid advances – particularly in generative AI (GenAI) and agentic AI – have generated significant interest. This report sets out 12 sound practices financial institutions are encouraged to consider to facilitate their responsible adoption of AI. The 12 sound practices are organised into two groups which: emphasise...

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A new working paper published by the European Central Bank (ECB) reveals that lenders are fundamentally reordering how they evaluate corporate default risks following the generative AI boom. Analyzing lender-specific data, the study shows that banks have lowered assessed default risk by roughly 5% for private firms in highly AI-exposed industries. However, this favorable view comes with a significant shift in corporate finance dynamics: banks are increasingly shifting credit allocation away from traditional, pre-existing market leaders in favor of more...

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The Financial Stability Board (FSB) has delivered a note to G20 Finance Ministers and Central Bank Governors outlining critical cross-border vulnerabilities within global stablecoin arrangements. In his accompanying letter, FSB Chair emphasized that financial markets remain highly susceptible to disorderly corrections and noted that the rapid evolution of frontier AI models introduces fresh complexities to systemic oversight. Concurrently, a separate peer review report on public sector backstop mechanisms reveals that further international coordination is required to ensure that resolving the...

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The European Investment Bank (EIB) Group today presented its plan to deliver at least €30 billion for climate adaptation by 2030, doubling its financing compared with the previous five years. The financing will help Europe adapt to heatwaves, droughts, wildfires and floods, supporting areas ranging from energy networks and public buildings to water systems and climate-resilient agriculture. EIB Group will step up investment in resilient infrastructure, water and agriculture, while supporting European adaptation technologies. New tools and advisory support...

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Today, the Council agreed its position on the proposal to simplify certain rules on data protection, privacy and cybersecurity, while maintaining strong levels of protection for personal data. The changes aim to make the EU’s digital rulebook clearer and easier to apply for businesses, public administrations and citizens, to support EU competitiveness The proposal forms part of the so-called 'Omnibus VII' legislative package in the EU’s simplification agenda. The package includes measures to simplify the EU’s digital legislative framework and the...

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