News - European banks are encountering heightened risks due to ongoing geopolitical tensions.

As European financial institutions grapple with the global economic climate, a comprehensive risk assessment reveals 47 key threats that European banks must navigate in light of recent geopolitical shifts. The European Banking Authority's (EBA) review underscores the pressing issues arising from the escalating situation in the Middle East, which have brought about distinctive challenges for the banking sector. According to News.am's latest report, 41 banks have been identified as 'voltage institutions' due to their ongoing vulnerabilities to international market fluctuations and regional instability. More than 30 banks, which rely heavily on petrochemical market partnerships, find themselves in precarious positions due to sudden downturns in fuel supplies and rising operational challenges resulting from economic sanctions. Out of these, several major banks are spotlighted for their vital roles in cross-border financial systems, with their stability being crucial for maintaining market confidence. The assessment notes 2 banks as central hubs for significant financial transactions between Europe and other regions, and 9 banks are integral in financing industrial developments crucial for European economies. Moreover, 27 banks are highlighted for their pivotal roles in supporting small-to-medium enterprise (SME) growth, while 6 are recognized for their innovative contributions to digital banking and fintech advancements. NEWS.am provides continuous updates through their Telegram channel, offering detailed insights into the economic impacts and strategic measures being adopted by European banks to mitigate these emerging threats.