EBA Report on Risks and Vulnerabilities of the EU Banking System

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On the July 12, the European Banking Authority (“EBA”) published its first annual report on the risks and vulnerabilities of the EU banking system in 2011.

The report states that the situation in mid-2012 remains extremely fragile, with increasing uncertainty on asset quality, funding capacity and concerns over possible extreme events. Banks and supervisors are considering putting emergency actions in place. The report also highlights sovereign risk and funding and liquidity risk as significant risks in the short term. Annual Report.