EU financial regulators assess risks to the financial sector after the outbreak of COVID-19 and call for enhanced cooperation

The Report highlights how the pandemic has led to further amplified profitability concerns across the board and heightened liquidity challenges in segments of the investment fund sector.

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Provider:

URL:

https://www.esma.europa.eu/press-news/esma-news/eu-financial-regulators-assess-risks-financial-sector-after-outbreak-covid-19

Retrieved on:

Wednesday, September 23, 2020

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Tags:

Articles, Health, Market liquidity, COVID-19 pandemic, Infectious diseases

Summary

Key Points:

The Report highlights how the pandemic has led to further amplified profitability concerns across the board and heightened liquidity challenges in segments of the investment fund sector.
It particularly points to economic and market uncertainty as a key challenge going forward.
The impact of the crisis on EU banks asset quality is a key concern as significant uncertainty about the timing and size of a recovery persists.
Directly following the COVID-19 outbreak in Europe, the ESAs actions provided for regulatory flexibility, fostered operational resilience, and highlighed the importance of consumer protection.