Overview

• The ECB's banking supervision has called on Eurozone banks to remain cautious despite solid capital buffers and strong profits in 2024.
• Weakening macroeconomic conditions and structural changes in the economy are flagged as key areas of concern for future stability.
• Geopolitical risks are highlighted as a potential threat, with the possibility of abrupt financial market adjustments leading to losses.
• The ECB's latest review slightly raised total capital requirements for banks to 15.6% for 2025, compared to 15.5% in 2024.
• Currently, the ECB directly supervises 113 banks, representing 82% of the Eurozone banking market, ensuring compliance with regulatory standards.