The European Central Bank's Governing Council has issued a statement on macroprudential policies following the Macroprudential Forum meeting on 24 June 2026, saying risks to euro area financial stability remain elevated and calling on national authorities to preserve the banking system's resilience. The statement points to prolonged geopolitical tensions and uncertainty, including the risk that an escalation or prolongation of the war in the Middle East could disrupt energy and commodity markets and weigh on inflation and growth. It also highlights tighter financing conditions, historically high asset valuations vulnerable to repricing, risks linked to artificial intelligence and non-bank financial institutions, and rising cybersecurity and hybrid threats. Against that backdrop, national macroprudential authorities should generally keep existing capital buffer requirements in place, as banks' capitalisation and profitability remain favourable and there is no sign that capital requirements are constraining credit supply. Existing borrower-based measures should also be maintained as structural backstops for sound lending standards where national legislation allows, while targeted recalibration can be considered if sources of systemic risk have changed persistently and doing so would not materially weaken overall banking sector resilience. The Governing Council adds that policy should remain agile in case further adverse shocks require a change in stance, and it backs an ambitious agenda to simplify the prudential framework where unnecessary complexity adds fragmentation and burden, provided this does not reduce bank resilience or financial stability.
European Central Bank2026-07-08
European Central Bank urges national authorities to maintain capital buffers and borrower-based measures amid elevated systemic risks
The European Central Bank said euro area financial stability risks remain elevated and urged national authorities to keep existing macroprudential safeguards in place. It called for capital buffers and borrower-based measures to be maintained, while allowing targeted recalibration if risk sources have changed and resilience is preserved. The statement also supports simplifying the prudential framework without weakening banks or financial stability.