ESRB Publishes Risk Dashboard for June 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
Featured Experts

Dr. Samuel W. Malone
Sam leads the quantitative research team within the CreditEdge™ research group. In this role, he develops novel risk and forecasting solutions for financial institutions while providing thought leadership on related trends in global financial markets.
Previous Article
Dietrich Domanski of FSB Offers Updates on Planned Work for 2018Related Articles
EBA Finalizes Remuneration Standards for Investment Firms in EU
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
ECA Recommends Actions to Enhance Resolution Planning for Banks
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE Publishes Key Elements of the 2021 Stress Testing for Banks in UK
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA Proposes Rules on Identity Verification of Depositor Protection
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB Publishes Work Program for 2021
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA Issues Update on Move to New Data Collection Platform
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank Publishes Derivation Rules for Reporting by Banks
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED Revises Capital Planning and Stress Testing Requirements for Banks
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs Publish Reporting Templates for Financial Conglomerates
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.