ESAs call for vigilance over external dependencies, cyber threats and private credit risks
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The EBA, EIOPA and ESMA say in their Autumn 2026 risk update that reliance on non-EU providers and infrastructures, emerging technologies and private credit are the main vulnerabilities of the EU financial system. The system remains resilient, but they urge supervisors and firms to strengthen preparedness.
Key points
- Concern over dependence on non-EU ICT providers and cyberattacks enhanced by advanced AI models
- Private credit is still small in the EU but growing fast with limited transparency
- Banks show strong profitability and capital, but asset quality is expected to deteriorate in commercial real estate and SMEs
- Quantum computing could undermine cryptographic systems
Who is affected
Banks, insurers, investment funds and supervisors
Plain-language version
The three EU authorities that watch over banks, insurers and markets (EBA, EIOPA and ESMA) warn about weak spots in the system: reliance on non-EU tech suppliers, AI-powered cyberattacks and private credit (loans made by funds instead of banks), which is growing fast with little transparency. The system is holding up, but they urge firms to prepare.
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Summary produced with artificial intelligence from the official publication. It may contain errors: always check the original document.
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