The Joint Committee of the European Supervisory Authorities has published its Spring 2016 Report on Risks and Vulnerabilities in the EU Financial System, highlighting the main cross-sectoral risks affecting the European financial system. The three main risks are historically low European yields and risks around the low profitability of some financial entities; the increase in interconnectedness of bank and non-bank entities; and the risk of potential contagion from China's receding market activity. The Joint Committee suggest these vulnerabilities be addressed through: (i) "forward-looking supervisory approaches to scrutinise business model sustainability";(ii) "a proactive stance to address high stocks of non-performing loans at banks" in some regions; and (iii) supervisory monitoring of concentration risks, cross border exposures and regulatory arbitrage. National supervisors have been requested to include emerging market risk in sensitivity analyses or stress tests and to scrutinise optimistic assumptions of financial institutions with regard to emerging market exposure and returns from emerging market business.