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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