The European Banking Authority (EBA) warned of possible second round effects from geopolitical shocks despite solid bank metrics.
The EBA issued its fourth quarter 2025 Risk Dashboard (RDB) stating that banks across the European Union and European Economic Area (EEA) remain in a position of strength despite the increasingly uncertain geopolitical landscape. Authority warned that the escalation of tensions in the Middle East could produce second‑round effects The EBA attributed this stability to robust capitalisation, steady profitability and firm liquidity conditions. The announcement was accompanied by the author