Bank of Japan Governor Kazuo Ueda says the BOJ should closely scrutinise how artificial intelligence and activities outside banks could affect the financial system. In comments reported by multiple outlets, Ueda highlights the need to evaluate emerging risks tied to AI-driven financial developments and the growing role of non-bank financial institutions. The BOJ chief frames this as part of the central bank’s responsibility to monitor stability as financial markets and intermediary activities evolve. While the reports do not indicate any immediate policy shift, they emphasise that the BOJ is attentive to potential transmission channels through which new technology and non-bank players could influence liquidity, leverage, risk-taking, and financial conditions. The coverage also underscores that Ueda’s remarks point to ongoing oversight rather than a specific decision, with the focus on understanding where vulnerabilities may build over time. Overall, the sources agree that the BOJ must remain vigilant as AI and non-bank activity expand, and that it should incorporate these factors into its assessment of financial system risks.