Cyber Risk and Bank Supervision: Lessons from the ECB Cyber Stress Test
SUERF Policy Brief Can supervisory scrutiny alone — without capital charges or public disclosure — shift bank behaviour on cybersecurity investment? This SUERF Policy Brief, based on an ECB Working Paper, examines whether the ECB’s 2024 Cyber Resilience Stress Test (CyRST) induced banks to increase cybersecurity investment. Cybersecurity has become a central financial stability concern: […]
Joint EBA-ECB Report on Payment Fraud: Strong Authentication Remains Effective but Fraudsters Are Adapting
Strong customer authentication has reduced payment fraud — but are security frameworks keeping pace with the tactics fraudsters are now using? The European Banking Authority (EBA) and the European Central Bank (ECB) have published their 2025 joint report on payment fraud in the European Economic Area (EEA). While the overall fraud rate remained stable at […]
2026 Geopolitical Risk Reverse Stress Test: Final Results
How prepared are euro area banks to identify and withstand geopolitical shocks that could threaten their capital positions? The European Central Bank (ECB) has published the results of its 2026 thematic reverse stress test on geopolitical risks, covering 110 euro area banks under direct ECB supervision. The exercise — part of the ECB’s supervisory priorities […]
Neo-conglomerates and EU Regulatory Perimeter Challenges: State of Play and Evaluation of Policy Options
As large technology-driven groups accumulate financial licences and offer bank-like services outside the regulatory perimeter, are supervisory frameworks keeping pace? The European Central Bank (ECB) has published Occasional Paper No. 394, examining the implications for financial stability of bank-like services being offered in the EU by large non-bank groups — referred to as “neo-conglomerates” — and […]
Financial stability risks from linkages between banks and the non-bank financial intermediation sector
The European Central Bank (ECB) and the European Systemic Risk Board (ESRB) published a joint report entitled “Financial stability risks from linkages between banks and the non-bank financial intermediation sector”. The report finds linkages between banks and the non-bank financial intermediation (NBFI) sector to be significant, and while they do not currently pose acute risks […]
Financial stability risks from geoeconomic fragmentation
The European Central Bank (ECB) and the European Systemic Risk Board (ESRB) have published a joint report, “Financial stability risks from geoeconomic fragmentation,” introducing a new framework to monitor how rising geopolitical tensions impact the financial system. Key Highlights: Economic Impact: Geopolitical shocks are increasingly driving macro-financial uncertainty, leading to tighter financial conditions, increased risk […]