On 19 September 2025, the Joint Committee of the European Supervisory Authorities published a report on risks and vulnerabilities in the EU financial system. The report highlights that global trade and security developments have led to sudden structural changes and contributed to a deteriorating economic outlook, increasing the risks to financial stability.
On this basis, the Joint Committee advises the European Supervisory Authorities, Member State competent authorities, financial institutions and market participants to take the following policy actions:
- Continue to embed geopolitical risks in their day-to-day business operations and risk assessments.
- Prepare for short and medium-term challenges, amid high uncertainties, such as market corrections, by maintaining adequate provisions and stress testing their liquidity positions.
- Strengthen vigilance against cyber risks and their potential impact on operational and financial stability, also via third-party service providers.
- Monitor contagion risks from crypto assets as the market expands, and the link between crypto markets and traditional financial sectors strengthens.
- Play an active role in supporting the Savings and Investments Union initiative, whilst considering the liquidity characteristics and risk profiles of alternative investments and their suitability for retail investors.