Banks: EBA says the sector remains resilient, but the current environment calls for constant vigilance
The Spring Report
Banks in the EU and the European Economic Area continue to operate from a position of strength, underpinned by solid capital and liquidity, high asset quality and sustained profitability. Funding conditions also remain broadly favourable, despite growing uncertainty in the financial markets. However, banks face a challenging and rapidly evolving risk environment, which requires constant vigilance. Escalating geopolitical tensions, including the conflict in the Middle East, have increased uncertainty and ‘could affect banks through rising energy prices, renewed inflationary pressures, a weakening of economic activity and increased market volatility’. Furthermore, “operational and cyber risks are on the rise”. These are the conclusions of the report by the European Banking Authority (EBA) on risks in the sector.
Aps
