General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
July 05, 2018

ESRB published its risk dashboard for June 2018, which contains a set of quantitative and qualitative indicators of systemic risk in the EU financial system. The risk dashboard is accompanied by an overview note that explains the recent development of the indicators and two annexes that explain the methodology and describe the indicators.

The dashboard reveals that the banking sector resilience continued to strengthen in the first quarter of 2018. The median common equity tier 1 to risk‐weighted assets ratio increased to 15.8% in the first quarter of 2018, up from 14.7% in the first quarter of 2017. Moreover, the median ratio of non‐performing loans to total gross loans and advances continued its downward trend, reaching 3.1% in the first quarter of 2018. Ongoing supervisory and regulatory work, as well as the improved economic environment, contributed to easing the severity of vulnerabilities in the European banking sector.

Solvency and profitability indicators suggest that the EU insurance sector is performing well overall. The median Solvency Capital Requirement ratio rose to over 200% in the fourth quarter of 2017, continuing the gradual upward trend from below 190% in the fourth quarter of 2016. This slight improvement was driven partly by the moderate increase in the risk‐free rates, with the ten‐year EIOPA risk‐free rate, for example, rising from 0.571% in the fourth quarter of 2016 to 0.802% in the fourth quarter of 2017. As the majority of European Economic Area insurance companies have a combined ratio below 100%, this would also suggest that underwriting performance for non‐life insurance portfolios has, on average, been healthy.

The ESRB risk dashboard is published quarterly, one week after its adoption by the General Board. The risk dashboard should not be considered to be a policy statement on systemic risks. Additional indicators that support systemic risk assessment in the EU financial system are available in the macro-prudential database maintained by ECB.


Related Links

Keywords: Europe, EU, Banking, Insurance, Securities, PMI, Risk Dashboard, Systemic Risk, ESRB

Related Insights

BCBS Finds Liquidity Risk Management Principles Remain Fit for Purpose

BCBS completed a review of its 2008 Principles for sound liquidity risk management and supervision. The review confirmed that the principles remain fit for purpose.

January 17, 2019 WebPage Regulatory News

HKMA Urges Local Banks to Start Working on FRTB Implementation

HKMA announced that it plans to issue a consultation paper on the new market risk standard in the second quarter of 2019.

January 17, 2019 WebPage Regulatory News

EBA Finalizes Guidelines for High-Risk Exposures Under CRR

EBA published the final guidelines on the specification of types of exposures to be associated with high risk under the Capital Requirements Regulation (CRR). The guidelines are intended to facilitate a higher degree of comparability in terms of the current practices in identifying high-risk exposures.

January 17, 2019 WebPage Regulatory News

MAS Guidelines on Risk Mitigation Requirements for OTC Derivatives

MAS published guidelines on risk mitigation requirements for non-centrally cleared over-the-counter (OTC) derivatives contracts.

January 17, 2019 WebPage Regulatory News

BoE Publishes the Schedule for Statistical Reporting for 2019

BoE published the updated schedule for statistical reporting for 2019. The reporting institutions use the online statistical data application (OSCA) to submit statistical data to BoE.

January 16, 2019 WebPage Regulatory News

PRA Delays Final Direction on Reporting of Private Securitizations

PRA and FCA have delayed the issuance of final direction, including the final template, on reporting of private securitizations, from January 15, 2019 to the end of January 2019.

January 15, 2019 WebPage Regulatory News

SNB Updates Forms on Supervisory Reporting for Banks

SNB published Version 1.7 of reporting forms (AUR_U, AUR_UEA, AUR_UES, AURH_U, AUR_K, AUR_KEA, and AURH_K) and the related documentation for supervisory reporting on an individual and consolidated basis.

January 15, 2019 WebPage Regulatory News

BCBS Finalizes Market Risk Capital Framework and Work Program for 2019

BCBS published the final framework for market risk capital requirements and its work program for 2019. Also published was an explanatory note to provide a non-technical description of the overall market risk framework, the changes that have been incorporated into in this version of the framework and impact of the framework.

January 14, 2019 WebPage Regulatory News

EBA Single Rulebook Q&A: First Update for January 2019

EBA published answers to 13 questions under the Single Rulebook question and answer (Q&A) updates for this week.

January 11, 2019 WebPage Regulatory News

PRA Proposes to Amend Supervisory Statement on Credit Risk Mitigation

PRA published the consultation paper CP1/19 that is proposing changes to the supervisory statement (SS17/13) on credit risk mitigation.

January 10, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2473