The Joint Committee of the European Supervisory Authorities (ESAs) published its fifth Report on Risks and Vulnerabilities in the EU Financial System. Overall, the report found that in the past six months, risks affecting the EU financial system have not changed in substance, but have further intensified.
The main risks affecting the financial system remain broadly unchanged from those identified in the report’s previous edition, but have become more entrenched. The major risks include:
- Low growth, low inflation, volatile asset prices and their consequences for financial entities;
- Search for yield behaviour exacerbated by potential rebounds;
- Deterioration in the conduct of business; and
- Increased concern about IT risks and cyber-attacks.
Read the full article here ESA