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ECB Flags AI, Geopolitical, and Stablecoin Risks in Bank Supervision
ECB raises red flags on AI, cyber-risk and stablecoins as key systemic threats in its 2025 bank review.
The ECB’s 2025 supervisory review highlighted emerging risks from AI exposure, cyber-threats and stablecoins, even as euro-area banks maintain strong capital buffers. The regulator pointed to rapidly growing AI concentration and rising cyber-incidents as potential systemic stress points. It also warned that stablecoins could pose a “shock” to traditional monetary transmission if not regulated preemptively.
Targeted bank stress tests are scheduled for 2026 to assess resilience under these non-traditional risk scenarios.