The Joint Committee of the European Supervisory Authorities (ESAs) has published its second bi-annual "Report on Risks and Vulnerabilities in the European Union's (EU) Financial System".
This Report identifies the following key cross-sectoral risks to the stability of the European financial system:
- the weak macro-economic outlook;
- the protracted low-interest rate environment;
- EU financial sector fragmentation; and
- reduced confidence in balance sheet valuations and risk disclosures.