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Buch Warns Banks Not Prepared for New Class of Risks

ECB

Reuters interviews new ECB supervisory head Buch, who states that:

  • Euro zone banks face a permanently changed risk landscape that requires lenders to alter how they operate
  • Surging interest rates, rising geopolitical risk, quicker deposit movements, multiplying cyber attacks and climate risk are all changing the fundamental nature of the business, and lenders may not be sufficiently prepared.
  • Many of these changes are structural rather than temporary. A key problem is that banks do not yet have the expertise to work in such an environment

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