BOJ Issues First Formal Assessment of Generative AI Risks in Japan's Banking Sector

The Bank of Japan published a Financial System Report Annex on August 24, 2026 titled "Use and Risk Management of Generative AI by Japanese Financial Institutions." It is the BOJ's first formal assessment of systemic risks from generative AI adoption by Japanese banks. The report examines how lenders are deploying the technology and what guardrails they need.