Post by European Central Bank

European banks remain resilient – but geopolitical shocks and operational risks may test that, says Supervisory Board Chair Claudia Buch. Europe’s strength lies in its ability to promote integration while safeguarding resilience. Developing a true Single Market is key to maintaining financial stability in this challenging global environment. In her statement to the Eurogroup, she also explains that: • Europe’s banking sector is well capitalised but must remain prepared for shocks – the ongoing war in the Middle East is a reminder of how quickly the risk environment can change • Banks need strong financial and operational resilience, and effective liquidity management, to manage challenges from heightened geopolitical, credit and cyber risks • A deeper and more integrated Single Market remains the essential foundation for a competitive European banking sector, but it is still incomplete The link to the Chair’s full statement is in the comments 👇