ECB reports in its SSM Annual Report 2025 that EU banks remain resilient but face growing risks from geopolitics, digital transformation and operational vulnerabilities

The report reviews supervisory activity across the Banking Union, noting strong profitability and broadly stable asset quality, while identifying emerging risks in areas such as commercial real estate, cyber resilience and reliance on complex IT systems. It also sets out supervisory priorities focused on strengthening banks’ resilience to macro-financial shocks, addressing persistent governance and risk-management weaknesses, and enhancing oversight of digitalisation and new technologies across the sector.