The European Union’s (EU) banking, insurance, pensions and securities sectors continue to face a range of risks, the latest report on “Risks and Vulnerabilities in the EU Financial System” published today by the Joint Committee of the European Supervisory Authorities (ESAs) shows. The 2019 Spring ESAs’ report highlights the following risks as potential sources of instability:

• Uncertainties around the terms of the United Kingdom's withdrawal from the European Union.
• Further repricing of risk premia and asset price volatility, which could be aggravated in conjunction with a less favourable macro-economic environment and the materialisation of a no-deal Brexit scenario.