EU financial regulators assess risks to the financial sector after the outbreak of COVID-19 and call for enhanced cooperation

Sep 22, 2020

EU financial regulators assess risks to the financial sector after the outbreak of COVID-19 and call for enhanced cooperation

Tuesday 22 September 2020 15:02

The three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) have issued their first joint risk assessment Report of the financial sector since the outbreak of the COVID-19 pandemic. The Report highlights how the pandemic has led to further amplified profitability concerns across the board and heightened liquidity challenges in segments of the investment fund sector. It particularly points to economic and market uncertainty as a key  challenge going forward.

The impact of the crisis on EU banks’ asset quality is a key concern as significant uncertainty about the timing and size of a recovery persists. The ESAs see a risk of decoupling of financial market performance from the underlying economic activity, and , a prolonged lower for longer...


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