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.