Cybersecurity threats may pose a greater long-term risk to banks than traditional credit losses, with artificial intelligence increasing the potential for attacks that could rapidly trigger liquidity stress, according to JPMorgan.
In a research note led by analyst Kian Abouhossein, the bank argued that next-generation AI models, including Mythos and GPT-5.5, are dramatically accelerating the discovery of previously unknown software vulnerabilities, leaving financial institutions with far less time to secure exposed systems.
“Significantly reduce the timeline for discovering previously unknown zero-day vulnerabilities from months and years to hours,” the analysts said, describing how frontier AI could reshape the cyber threat landscape.
JPMorgan believes current regulatory frameworks place too much emphasis on capital ratios while underestimating operational resilience.
“Looking at cybersecurity risk through the lens of the capital framework is not the best approach,” Abouhossein wrote, arguing that regulators should place greater emphasis on infrastructure resilience testing and stress tests that model rapid deposit outflows during a cyber event.
The bank also warned that social media could significantly accelerate customer withdrawals during a cyberattack, creating “unprecedented volatility in deposit flows” similar to the rapid deterioration seen during the collapse of Credit Suisse.
U.S. Banks Seen Better Prepared
JPMorgan believes U.S. banks are currently better positioned than many international peers thanks to larger technology budgets and earlier access to advanced AI tools.
European banks were identified as more exposed to cyber risks because they generally invest less in technology and may face slower adoption of the latest AI developments. According to the bank, technology spending accounted for around 17% of global banking operating expenses during 2025.
The report also suggested investors may increasingly reward banks with stable and diversified deposit bases, arguing that institutions with stronger liquidity profiles could command valuation premiums during periods of elevated cyber risk.
JPMorgan added that a higher valuation premium for U.S. global systemically important banks relative to European and Japanese peers “could be justified due to lower cost of equity as the market factors in better cyber risk preparedness.”