Europe
CNB takes next step towards adopting bitcoin
Board approves governor’s proposal to look at “additional asset classes”, which could include crypto
Privacy and security seen as greatest AI risks
Larger risk teams more likely to provide training to staff on risk types
EBA launches stricter EU-wide stress test for 2025
Banks face more scrutiny of credit risks following “overly optimistic projections” in past exercises
Most central banks reviewed risk management in past year
Other aspects evaluated varied by risk team structure and departmental staff strength
European Commission in ‘listening mode’ on potential FRTB changes
Delay or relief measures on the table after UK postpones start of Basel III to 2027
Esma sets deadline for delisting non-compliant stablecoins
Providers have until end of March to fully comply with Mica regulation, European supervisor says
Cyber and geopolitical risks are managers’ top risks
Geopolitical risks seen rising fastest, but cyber is the biggest concern currently
Central banks keep ISO 31000 and COSO-ERM as main approaches
Principles tend to vary slightly by central banks’ risk management philosophies
Europe’s central banks re-evaluate X after Bundesbank leaves
German central bank says standards of discussion on platform are “increasingly unacceptable”
Central banks typically employ detailed business continuity plans
But institutional risk appetite is less commonly included, especially in Europe
Tighter credit and monetary policy hurts the young – ECB study
Borrowing limits push up rents but do not affect house prices, research shows
Basel stops short on wrong-way risk
New guidelines a step in right direction, but experts warn they won’t prevent another Archegos
ECB lists climate and tech risks as supervisory priorities
SSM says strong governance and geopolitical risks will also be among key areas of focus in 2025–27
ECB presidents’ displays of emotion affect markets – study
Research says leaders’ facial expressions and tones of voice amplify effects of their policy statements
West Balkan central banks to create instant payments system
Albania, Bosnia and Herzegovina, Kosovo, and Montenegro to launch Tips clone in 18 months
Finland’s fintech head on retail CBDCs versus instant payments
Payments unit leader Aleksi Grym discusses overlaps and synergies for retail CBDCs and instant payment systems in Finland and the eurozone
One-fifth of central banks lack defined risk tolerance and strategy
But majority of respondents apply risk management principles to policies and processes
Adoption of governance, risk and compliance systems still partial
Respondents mention main service providers and plans to upgrade
Decentralised risk teams less likely to have chief risk officers
CROs are also less common at Asia-Pacific and European central banks
Higher tariffs would hurt US allies as well as its foes – research
However, research says country would be largely shielded from impact of geopolitical fragmentation
Credit and counterparty risk gains relevance as most covered risk
But central banks’ top risks vary by geographical regions