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LIVE DESK·Global markets desk·Last updated 14s ago
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Economy/MacroArticle

BIS chief warns AI capex arms race relies on opaque debt, posing systemic risks

BIS chief Pablo Hernandez cautions that AI spending funded by opaque debt could create systemic risks, citing past railway and dot‑com bubbles.

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Elena Kovač · Central Banks Desk · 20 Sept 2026 · 06:30 · 1 min read
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BIS chief warns AI capex arms race relies on opaque debt, posing systemic risks

BIS chief Pablo Hernandez warned that the rapid increase in AI capital expenditure is being financed through opaque debt, creating systemic risk.

He referenced historical railway and dot‑com bubbles, saying that spending driven by hype rather than actual profits could lead to broad economic corrections.

Further verified details were not immediately available.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Elena Kovač
Central Banks Desk

Elena covers macroeconomic data and policy across the eurozone, translating industrial output, inflation and growth figures into what they mean for markets.

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