The Joint Committee of the European Supervisory Authorities (ESAs) has published its September 2017 report on risks and vulnerabilities in the EU financial system.

The report that the Joint Committee of the ESAs published in March 2017 considered the following to be key risks to the EU financial system: (i) the persistent low profitability of financial institutions; (ii) risks around the adequate valuation of asset prices and price volatilities; (iii) increasing interconnectedness via direct and indirect exposure; and (iv) information-technology-related risks in a fast-changing technological environment.

This latest report is in many respects a continuation of those themes, with a focus on continued challenges stemming from an environment of political uncertainty and fragmentation, not least in the light of the UK’s withdrawal from the EU, persistent valuation risk also related to an uncertain outlook for yields, and the low profitability of financial institutions. It also highlights challenges resulting from rapid developments in the area of FinTech, and presents regulatory and supervisory initiatives to monitor and mitigate the risks identified.

View Joint Committee of ESAs report on risks and vulnerabilities in EU financial system: September 2017, 21 September 2017