“Banks must prepare for increasing geopolitical risks” says Claudia Buch, Chair of the Supervisory Board of the European Central Bank, who addressed the European Parliament with a clear warning: “In a context of heightened geopolitical risks, the likelihood of extreme events materializing has increased”. She emphasized that management bodies must ensure banks are sufficiently resilient both financially and operationally

The Chair of the ECB Supervisory Board: "Each institution should prepare for its own adverse scenarios."

"In a context of heightened geopolitical risks, the likelihood of extreme events materializing has increased."

"Management bodies should therefore ensure that banks are sufficiently resilient from both a financial and operational perspective," with "risk management frameworks that capture adverse scenarios relevant to each bank."

Furthermore, banks should reduce their vulnerabilities to geopolitical risks through provisioning practices, capital planning, cybersecurity resilience, and outsourcing arrangements," stated Claudia Buch, Chair of the Supervisory Board of the European Central Bank, while addressing the European Parliament.