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European banks face increased leveraged lending risks, says Enria

SSM chair highlights cyber attacks and climate change as emerging risks to financial stability

SSM chair Andrea Enria
Andrea Enria
European Central Bank

European banks have increased their leveraged lending, which could expose them to higher risks if central banks increase interest rates, the European Central Bank’s chief supervisor warned.

Single Supervisory Mechanism chair Andrea Enria said today (February 10) banks have breached their expectations regarding the amount of risky lending they would engage in.

Presenting the results of the annual Supervisory Review and Evaluation Process (SREP), Enria warned cyber security and climate change

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