EU banks continue to be robust although risks from geopolitical tensions and cyber threats remain significant, the EBA Report shows

  • Press Release
  • 29 November 2024

The European Banking Authority (EBA) today published the autumn edition of its risk assessment report (RAR). The Report is accompanied by the publication of the 2024 EU-wide transparency exercise, which provides detailed information, in a comparable and accessible format, for 123 banks from 26 countries across the European Union (EU) and the European Economic Area (EEA).

Highlights of the EBA risk assessment:

  • EU/EEA banks continue to operate in an environment of slow economic growth and downside risks due to geopolitical risk.
  • Lending is picking up slowly, while banks’ asset quality marginally deteriorated.
  • Direct exposures of the EU banking sectors towards geopolitical risky countries are limited yet second round risks can be material.
  • Risks relevant to CRE sector and the interlinkages with non-bank financial intermediaries remain significant for the EU banking sector.
  • Climate and physical risks should not be underestimated.
  • EU/EEA banks maintained strong capital positions. CET1 headroom remains well above overall capital requirements (OCR) and Pillar 2 Guidance (P2G).
  • Profitability remains high, yet its sustainability is challenging, EU/EEA banks’ valuation lags in relation to their global peers.
  • Operational risks, particularly those associated with cyber threats, are increasing.
  • EU/EEA banks resort to AI to foster efficiencies and General-Purpose AI (GPAI) is gaining traction. But their growing use is not without risks.


 

Documents

Risk Assessment Report - Autumn 2024 [digital]
 

Risk Assessment Report - Autumn 2024

(4.94 MB - PDF)

RAQ Booklet graphs Autumn 2024

(6.35 MB - PDF)

Press contacts

Franca Rosa Congiu