Europe
ECB and ESRB warn of financial stability risk from geopolitics
New model takes prediction data to show US domestic politics affecting eurozone financial markets
Geopolitics a key focus for ECB supervisors – blog
European banks have fared well so far against shocks but must stay vigilant, senior officials write
Don’t count on central banks to buy public debt, says Lagarde
ECB president tells Davos panel that divergent global standards may puncture AI bubble
Risk management reviews are most common assessment method
Centralised teams are less likely to conduct external or management evaluations
Bailey underscores support for Powell
BoE governor also points to potential spillover risks to UK from events in US
Croatia’s Vujčić to replace de Guindos as ECB vice-president
Governor will be executive board’s first member from a post-2004 EU accession state
Europeans have more trust in compatriot ECB officials – study
ECB messages carry more weight when delivered by officials from one’s own country, research finds
Yield curve ‘steepening’ best seen as normalisation – ECB study
Long-term borrowing costs surged but overall structure ‘not in an unusual shape’, say economists
UK’s Orange Book risk approach rarely used by central banks
Only three centralised risk management departments utilise principle
Trade fragmentation still favours west over east – BdF study
Authors says US-led bloc better placed to win over neutral states than China-aligned grouping
ECB reaffirms commitment to climate-related work
Central bank to continue scrutinising lenders over environmental risks on balance sheet
Staff error is largest cause of op risk at central banks
Legacy systems tend to trigger most threats in jurisdictions with greater than average number of incidents
Private credit to grow in Europe in 2026 – S&P
Basel implementation and diversification away from US point to more activity, analysts say
Central bank governors express ‘full solidarity’ with Powell
Lagarde and Bailey among signatories of statement in wake of Department of Justice investigation
Op risk incidents average over 100 a year among central banks
Financial impact is risk managers’ strongest metric for gauging incidents’ severity
Collateral velocity is disappearing behind a digital curtain
Dealers may welcome digital-era rewiring to free up collateral movement, but tokenisation will obscure metrics
Eurozone food inflation to ease in 2026 – ECB bulletin
Sticky prices have moderated in recent months and should decline further in 2026, economists say
Phishing and ransomware are central banks’ main cyber threats
Teams widely use training, monitoring and privilege management to mitigate cyber threats
Just under half of risk departments are sufficiently staffed
Units with satisfied staffing levels earn below global average annual salary
Villeroy de Galhau warns of ‘Americanisation’ of money
Tokenisation and geopolitics are new disruptive forces, BdF governor says
Credit spread risk: the cryptic peril on bank balance sheets
Some bankers fear EU regulatory push on CSRBB has done little to improve risk management
‘Green’ banks face lower repo rates – ECB study
Researchers say climate transition risk has implications for financial stability and policy transmission
Mitigation and reporting are leading components of risk strategy
Decentralised teams more likely to embed philosophy in divisional decision-making
People: New governor in Malta
Plus: Bahamian governor reappointed and new vice-governor in Bosnia