The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) has published its Spring 2016 report on risks and vulnerabilities in the EU financial system. The report suggests a set of policy actions to tackle the following main risks affecting the European financial system:

  • low profitability of financial institutions in a low yield environment;
  • increasing interconnectedness of bank and non-bank entities; and
  • potential contagion from risks affecting China and other emerging markets.

(Source: ESAs report on vulnerabilities affecting the EU financial system)