Report · Supervisor
Risk Assessment Report, June 2026
The EBA concludes that European banks are holding up and still growing, with risks increasingly concentrated in segments, sovereigns, non-bank financial institutions and cybersecurity.
- Organization
- European Banking Authority (EBA)
- Document date
- 18 June 2026
- Type
- Report
- Language
- English
- Scope
- European Union
- Length
- 73 pages
What it contains
The European Banking Authority’s (EBA) June 2026 Risk Assessment Report draws on the supervisory data that competent authorities send it every quarter, for a sample of 161 banks from 30 European Economic Area countries, and on the spring Risk Assessment Questionnaire. It concludes that EU/EEA banks remain resilient and are still expanding their balance sheets in a more volatile and fragile risk environment: lending to households and non-financial corporates grew by 2.7% in 2025, exposures to non-bank financial institutions rose significantly to around 10% of total assets, and private credit exposures remain limited although somewhat concentrated in larger banks.
On asset quality, non-performing loan ratios remain low and the share of Stage 2 loans has fallen, but vulnerabilities persist in SMEs, consumer credit and commercial real estate; the household NPL ratio falls to 2.0% (1.3% for mortgages and about 5.4% for consumer credit). Sovereign exposures rose from around €3.65 trillion to €4.18 trillion between 2024 and 2025, and from 206% to 232% of CET1, which makes capital more sensitive to a repricing of sovereign debt. The report also warns that frontier language models, with a much greater ability to discover and exploit software vulnerabilities, raise cyber risk, and that operational risk keeps rising because of cyber risk, data security and fraud.
On capital and liquidity, capital ratios are near record highs, with headroom over the overall capital requirement and Pillar 2 guidance of close to 500 basis points, although banks plan higher shareholder payouts. The LCR stood at 160% at the end of 2025 and liquidity and funding ratios are expected to decline slightly in 2026 without approaching regulatory minimums. The report also includes boxes on the effect of the Middle East crisis on energy-intensive sectors and on private credit markets.
Why it matters for risk management
It offers a thermometer for comparing your own indicators (portfolio quality, sovereign concentration, liquidity, cyber risk) with those of a large banking system supervised in a uniform way. The figures reflect the European context; the Dominican Republic is not in the sample, so reading them for the country should be done with caution and case by case.
Summary prepared by the Dominican Republic Risk Management Club from a reading of the original document, with the source verified on 12 October 2026. It does not replace reading the official text and is not advice.
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