Spikes in geopolitical risk indices have been associated with lower bank stability, leading supervisors to closely monitor how they are being managed by lenders. We propose a set of key elements that should be part of bank’s geopolitical risk management systems and review an array of plausible future scenarios. We then turn to some initiatives carried out by the SSM and the EBA, including thematic reviews and stress-tests, and look at how crucial geopolitical risk is considered by bank managers. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the ECON Committee.
The Impact of Geopolitical Risks on the Resilience of Banks in the Banking Union
Andrea Resti
2025
Abstract
Spikes in geopolitical risk indices have been associated with lower bank stability, leading supervisors to closely monitor how they are being managed by lenders. We propose a set of key elements that should be part of bank’s geopolitical risk management systems and review an array of plausible future scenarios. We then turn to some initiatives carried out by the SSM and the EBA, including thematic reviews and stress-tests, and look at how crucial geopolitical risk is considered by bank managers. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the ECON Committee.
File in questo prodotto:
Non ci sono file associati a questo prodotto.
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
