The frontier artificial intelligence models are changing the nature of cyber threats. At the same time, they are also changing our understanding of where serious disruptions and systemic risks in the financial system may originate.

Many households were under increasing financial pressure when inflation surged and interest rates were raised in the first few years of the 2020s. Essential spending rose faster than household income, which placed a strain especially on indebted households. Nevertheless, households have, for the most part, coped well with their loan servicing, and resilience must continue to be maintained in the future.