The Joint Committee of the European Supervisory Authorities (ESAs) published today its biannual report on risks and vulnerabilities in the European Union's (EU) financial system. The report identifies a number of risks to financial stability in the EU, including prolonged weak economic growth in an environment characterised by high indebtedness, intensified search for yield in a protracted low interest rate environment, and uncertainties in global emerging market economies. The report also highlights risks related to conduct of business and Information Technologies (IT).

Since the previous publication in April 2014, the report brings into focus the fragile nature of the economic recovery within the EU, reflected in generally weak balance sheets, both at private and public level. One main concern is that the present benign market conditions may hide fragilities in a weak economic environment. In particular, the ESAs see further challenges in high...

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Bi-Annual Report on Risks and Vulnerabilities in the European Union's (EU) Financial System