The European Systemic Risk Board (ESRB) has published its annual report for 2016.

The report notes that the ESRB continued to identify four main risks to financial stability in the EU, namely:

  • a re-pricing of risk premia in global financial markets;
  • weaknesses in balance sheets of banks, insurers and pension funds;
  • debt sustainability challenges in sovereign, corporate and household sectors; and
  • shocks and contagion from the non-bank financial sectors to the wider financial system.

As in the previous ESRB annual report, an abrupt reversal of global risk premia continued to be considered  as a particularly prominent risk to financial stability.

View ESRB annual report 2016, 28 July 2017