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Date Ref. Title Section Type Download Info Summary Related Documents Translated versions
05/05/2015 JC/2015/02 ESAs- main risks to EU financial market stability have intensified Risk Analysis & Economics - Markets Infrastructure Investors, Press Releases, Joint Committee Press Release PDF
125.34 KB		 The Joint Committee of the European Supervisory Authorities (ESAs) published its fifth Report on Risks and Vulnerabilities in the EU Financial System. Overall, the report found that in the past six months, risks affecting the EU financial system have not changed in substance, but have further intensified. The EU’s economic performance improved slightly in early 2015, however the financial sector in general continues to be affected by a combination of factors such as low investment demand, economic uncertainty in the Eurozone and its neighbouring countries, a global economic slow-down and a low-interest rate environment. The main risks affecting the financial system remain broadly unchanged from those identified in the report’s previous edition, but have become more entrenched. The major risks include: • Low growth, low inflation, volatile asset prices and their consequences for financial entities; • Search for yield behaviour exacerbated by potential rebounds; • Deterioration in the conduct of business; and • Increased concern about IT risks and cyber-attacks. Despite these risks, a number of ongoing policy and regulatory initiatives are contributing to improving the stability and confidence in the financial system as well as facilitating additional funding channels to the real economy. These include ongoing regulatory reforms in the securities, banking and insurance sectors such as the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR), the work on the implementation of the Capital Requirements Directive and Regulation (CRDIV/CRR), the work on the Bank Recovery and Resolution Directive (BRRD), the Deposit-Guarantee Schemes Directive (DGS) and the Solvency II Directive, as well as the European Commission’s plan for a Capital Markets Union (CMU). Steven Maijoor, Chair of the European Securities and Markets Authority (ESMA) and the current Chairman of the Joint Committee, said: “The Joint Committee has noted some improvement in overall market conditions; however, the recovery is not yet sustained and is exposed to risks related to broad macroeconomic conditions, in particular the low interest environment and resulting search-for-yield behaviour. Additionally regulators continue to have concerns about the operational risks generated by some financial institutions’ inappropriate business conduct, as well as those risks posed by inadequate management of IT risks. “However, recent regulatory initiatives across the banking, insurance and securities sectors, such as the Comprehensive Assessment, the insurance sector stress test and Solvency II along with, the ongoing MiFID, EMIR and PRIPS reforms are contributing to improving the stability and confidence in the EU financial system." Key Risks Identified The identified risks in the Report can be divided into macro risks to the EU financial system and economy and operational risks. Macro Risks The key macro risks identified relate to: 1. Risks from weak economic growth and low inflation environment, which include: • Adverse effect that low interest rates and uncertainties about the economic recovery have had on the outlook for the financial industry; • Higher valuation and market liquidity risk has raised concerns about the outlook for financial entities’ stability in the event of reversals in interest rates and asset prices; 2. Low profitability is motivating financial institutions and other investors to search for yield, which requires increased supervisory attention to the viability of business models, related restructuring activity and adequate management of risks. However, the promotion of sound and innovative business models for market-based funding structures could help to deliver additional stimulus; and 3. Some continued doubts on the comparability and consistency of banks’ calculations of risk weighted assets. Operational Risks The key operational risks relate to: 4. Business conduct risk remains a key concern with the Report recommending that supervisors should include misconduct costs in future stress tests where appropriate, while financial institutions should strengthening product oversight and governance frameworks. Further improvements in the regulatory framework and supervisory practices to address conduct risks are also warranted. In addition, further progress needs to be made on benchmark reforms where continuity and integrity remain a source of concern even if key panels remained stable; and 5. IT operational risk and cyber risk remain of great concern and pose challenges to the the safety and integrity of financial institutions. IT risk increased due to costs pressures, outsourcing, the need for additional capacities and a mounting number of cyber-attacks. The adequate integration of IT risk into overall risk management is a key policy for mitigation.
26/03/2021 ESMA71-99-1624 ESMA ADVISES ON FRAMEWORK FOR DATA REPORTING SERVICE PROVIDERS Market data, Press Releases Press Release PDF
84.4 KB
13/10/2016 2016 IFRS Press Release ESMA and IFRS® Foundation strengthen cooperation Corporate Information, IAS Regulation, IFRS Supervisory Convergence Press Release PDF
213.42 KB
06/06/2013 2013/684 ESMA and the EBA publish final principles on benchmarks Risk Analysis & Economics - Markets Infrastructure Investors, Press Releases, Benchmarks Press Release PDF
125.48 KB
11/01/2013 2013/13 ESMA and the EBA take action to strengthen Euribor and benchmark rate-setting processes Risk Analysis & Economics - Markets Infrastructure Investors, Press Releases Press Release PDF
207.75 KB
02/06/2016 2016/743 ESMA assesses usefulness of distributed ledger technologies Innovation and Products, Press Releases, Risk Analysis & Economics - Markets Infrastructure Investors Press Release PDF
152.48 KB
18/10/2018 ESMA71-99-1027 ESMA data analysis values EU derivatives market at €660 trillion with central clearing increasing significantly Press Releases, Risk Analysis & Economics - Markets Infrastructure Investors Press Release PDF
238.11 KB
19/02/2020 ESMA71-99-1284 ESMA finds continued high risks as financial markets remain highly volatile Press Releases, Risk Analysis & Economics - Markets Infrastructure Investors Press Release PDF
94.61 KB
15/04/2021 ESMA71-99-1651 ESMA highlights need for increased efforts on EMIR and SFTR data quality Market data, Press Releases, Securities Financing Transactions, Supervisory convergence Press Release PDF
85.72 KB
14/02/2013 2013/215 ESMA issues first risk report on EU securities markets Risk Analysis & Economics - Markets Infrastructure Investors, Press Releases Press Release PDF
99.25 KB
17/03/2016 2016/366 ESMA maintains market risk indicator at highest level Press Releases, Risk Analysis & Economics - Markets Infrastructure Investors Press Release PDF
117.11 KB
18/11/2020 ESMA71-99-1437 ESMA publishes first overview of the size and structure of EU securities markets Risk Analysis & Economics - Markets Infrastructure Investors Press Release PDF
93.67 KB
05/09/2019 ESMA71-99-1205 ESMA publishes stress simulation framework for investment funds Fund Management, Press Releases, Risk Analysis & Economics - Markets Infrastructure Investors Press Release PDF
119.98 KB
14/09/2015 2015/1379 ESMA raises its market risk indicator to highest level Risk Analysis & Economics - Markets Infrastructure Investors, Press Releases Press Release PDF
120.03 KB
06/04/2020 ESMA71-99-1301 ESMA report stresses impact of costs on retail investor benefits Fund Management, MiFID - Investor Protection, Risk Analysis & Economics - Markets Infrastructure Investors Press Release PDF
109.54 KB
07/03/2019 ESMA71-99-1111 ESMA report values EU Alternative Investment Funds at €4.9 trillion Press Releases, Risk Analysis & Economics - Markets Infrastructure Investors Press Release PDF
257.55 KB
10/01/2020 ESMA71-99-1270 ESMA report values EU Alternative Investment Funds at €5.8 trillion Fund Management, Press Releases, Risk Analysis & Economics - Markets Infrastructure Investors Press Release PDF
149.02 KB
17/03/2021 ESMA71-99-1579 ESMA sees high risk for investors in non-regulated crypto assets Risk Analysis & Economics - Markets Infrastructure Investors Press Release PDF
98.02 KB
02/09/2020 ESMA71-99-1375 ESMA sees high risk of decoupling of financial market performance and underlying economic activity Risk Analysis & Economics - Markets Infrastructure Investors Press Release PDF
127.82 KB
01/09/2021 ESMA71-99-1720 ESMA sees risk of market corrections in uneven recovery Press Releases, Risk Analysis & Economics - Markets Infrastructure Investors Press Release PDF
91.28 KB

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