
EBA Risk Dashboard Q4 2022: Operational risk remains a key concern
Quarterly European Banking Authority (EBA) risk dashboards highlight main vulnerabilities in the EU banking sector and serve as an extremely useful source of benchmarking information. A recently published report1 is of particular interest, as Q4 2022 data is supplemented by latest analysis of the confidence crisis involving Silicon Valley Bank and Credit Suisse. The report notes a sharp increase in financial market volatility in early March; and a somewhat uncertain macroeconomic outlook. Despite the turmoil, it acknowledges that bank’s share prices and credit spreads have recovered, and overall EU/EEA banks remain in strong financial position with sufficient capital and liquidity ratios. This is supported by a heatmap of risk indicator trends overtime containing no ‘RED’ indicators; measures are predominantly GREEN with 3 out of 10 trending AMBER. Continue reading…