ECB probes European banks' AI industry lending exposure amid hidden risk concerns
The European Central Bank is asking individual lenders for details on their lending to data centers and other AI-related sectors, amid concern over hidden credit exposures and financial-sector disruption.
The probe signals regulators are catching up to the AI infrastructure boom's financial risks. As banks increase exposure to data center financing and AI companies, the ECB wants to understand whether concentrated lending in the sector could create systemic vulnerabilities similar to past technology bubble patterns.
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