EBA publishes spring 2025 risk assessment report

The European Banking Authority (EBA) has published its spring 2025 risk assessment report alongside a press release, outlining key developments and emerging risks within the European Union/European Economic Area (EU/EEA). The report highlights, among other things:

• Strong capital and liquidity positions across EU/EEA banks, with profitability remaining at historically high levels, although increased uncertainty and financial market volatility could challenge the sustainability of this.
• Rising credit risks, particularly in sectors vulnerable to geopolitical tensions, tariffs and supply chain disruptions.
• Elevated operational risks, driven by increasing cyber threats and a surge in fraudulent activities.
• Shifts in funding strategies, with banks relying more on deposits and secured debt to support asset growth.
• Exposure to climate-related risks, both transitional and physical, with significant variation across institutions and jurisdictions.

The report is also accompanied by a spring risk assessment questionnaire.

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