EBA’s latest Risk Assessment Report (RAR) and 2024 EU-wide transparency exercise show that EU banks remain resilient, despite ongoing risks from geopolitical tensions and cyber threats

Highlights of the EBA risk assessment: EU/EEA banks continue to operate in an environment of slow economic growth and downside risks due to geopolitical risk. Lending is picking up slowly, while banks’ asset quality marginally deteriorated. Direct exposures of the EU banking sectors towards geopolitical risky countries are limited yet second round risks can be material. Risks relevant to CRE sector and the interlinkages with non-bank financial intermediaries remain significant for the EU banking sector….