European Banks Face Unprecedentedly High Shock Risk: ECB

Europe’s central bank said geopolitical tensions and technological disruptions were among factors exacerbating structural vulnerabilities.

A woman walks past the European Central Bank (ECB) headquarters in Frankfurt, Germany, on Jan. 28, 2021. Kai Pfaffenbach/Reuters

Banks in the Eurozone need to prepare for unprecedented shocks as “global uncertainties have surged to exceptional levels,” the European Central Bank (ECB) said on Nov. 18.

Outlining its supervisory priorities for the next three years, the ECB warned the current climate could result in serious disruptions with far-reaching consequences for the continent’s financial systems.