Author: Selwyn Manning

Source: Government of the Netherlands

News item | 20-09-2024 | 16:42

What is the United Nations General Assembly?

The United Nations (UN) is a group of 193 countries that make decisions together to create a safer and better world. Representatives from these countries hold a meeting called a General Assembly to discuss the biggest global challenges. They consult with each other and make decisions, which are called resolutions. Each country has a single vote on a resolution.

A member of the UN: the Kingdom of the Netherlands

All the countries of the Kingdom of the Netherlands are a member of the UN together. That means that the Netherlands, Aruba, Curaçao and St Maarten usually all attend the General Assembly together. The Kingdom’s delegation includes the prime ministers of each of those countries.

What does the Kingdom of the Netherlands hope to achieve at the General Assembly?

In recent years, unrest has increased considerably all around the world. For instance, due to Russia’s war in Ukraine, and the terrorist attacks by Hamas in Israel on 7 October 2023 and the resulting violence on both sides. At the same time, the effects of climate change and poverty are also growing.

In a world where problems don’t stop at national borders, the United Nations plays a crucial role. It’s an organisation that unites as many countries as possible to face these challenges together. Because together we are stronger. The Kingdom of the Netherlands is committed to international cooperation, which also helps protect our own prosperity and security.

International rules and agreements that countries follow

The Kingdom of the Netherlands wants the UN to continue working as it should, with clear rules and agreements. Now especially, when so much is changing around the world and some countries are ignoring international agreements, it’s important that countries can engage in dialogue through the UN. That will enable them to work together according to rules and agreements, regardless of how much power each one has.

Climate change and vulnerable countries

The Kingdom of the Netherlands is committed to fighting climate change. Small islands like Aruba, Curaçao and St Maarten are most affected by climate change. Rising sea levels and extreme weather make these countries more vulnerable. The Kingdom of the Netherlands wants the UN to help find solutions.

Protecting human rights and democracy

The Kingdom of the Netherlands believes that the rights of people around the world must be protected. Human rights and democracy are under pressure in many countries, and we believe it is our task to fight for justice together with other countries. We are also committed to strengthening the international legal order, for instance through support for the courts and tribunals in The Hague. This will ensure that crimes – such as those committed by Russia in Ukraine – do not go unpunished.

United Nations General Assembly: Summit of the Future and General Debate

This year, the UN General Assembly will open with the Summit of the Future on 22 and 23 September. During the Summit, countries will set out plans to ensure that the UN is able to face the challenges of the future. Starting on 24 September, the General Debate will take place during the High-level Week. Heads of state and government leaders from around the world, including the Kingdom of the Netherlands, will attend both events.

Source: Government of the Netherlands

News item | 20-09-2024 | 00:30

Minister of Education, Culture and Science Eppo Bruins has decided to return the artefacts. In doing so, he is following the advice of the Colonial Collections Committee chaired by Lilian Gonçalves-Ho Kang You. The artefacts are currently in the collection of the Wereldmuseum. Experts and organisations in the field of museums and collections in both countries collaborated intensively to make this return possible.

Commenting on the decision, Minister Bruins said: “This is the second time we are returning objects that should never have been in the Netherlands, based on recommendations from the Colonial Collections Committee. In the colonial period, cultural objects were often looted, or they changed hands involuntarily in some other way. The return of these objects is important with regard to material redress.”

This is the second set of recommendations issued by the Colonial Collections Committee. In the summer of 2023, objects were also returned to Indonesia, and to Sri Lanka. With this return, the Ministry is thus continuing its course.

The following objects will be returned:

• Four Hindu-Buddhist sculptures, namely statues of Bhairava, Nandi, Ganesha and Brahma, brought to the Netherlands from Java in the first half of the 19th century.
• 284 objects from the Puputan Badung Collection. These include objects such as weapons, coins, jewellery and textiles that were taken to the Netherlands after a war against the Badung and Tabanan principalities in southern Bali in 1906, and eventually added to the collection of the Wereldmuseum.

The artefacts will be officially returned to Indonesia on 20 September at the Wereldmuseum in Amsterdam, in the presence of the director-general for culture of Indonesia, Hilmar Farid, and the Indonesian Repatriation Committee. The Colonial Collections Committee advised the Minister to return these objects on the basis of provenance research by the Wereldmuseum and in accordance with the national policy on colonial collections. These recommendations have been established in close dialogue and cooperation with the Indonesian Repatriation Committee and other experts. It demonstrates the close bilateral relations between Indonesia and the Netherlands in the cultural field.

The Committee has published its recommendations. Further recommendations are being prepared in response to other requests from Nigeria, Sri Lanka, India and Indonesia.

Source: European Banking Authority

The European Banking Authority (EBA) today published its Q2 2024 quarterly Risk Dashboard (RDB), which discloses aggregated statistical information for the largest EU/EEA institutions.

• EU/EEA banks’ return on equity (RoE) remained nearly unchanged on a yearly basis, reaching 10.9%, 10bps lower than one year ago. On a quarterly basis the RoE increased by 30bps, mainly driven by a rise in other operating income.
• The net interest margin (NIM) declined slightly (1.68% in Q2 vs. 1.69% in Q1, 1.60% one year ago), indicating that it might have reached its peak in Q1 2024. As volume growth could not compensate for the negative impact from the NIM, net interest income declined slightly on a quarterly basis.
• EU/EEA banks’ common equity tier 1 (CET1) ratio rose on a fully loaded basis by 10bps to 16.1% in Q2 2024. The liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) similarly rose in the second quarter (from 161.7% to 163.2% and from 127.3% to 127.8%, respectively). In the LCR’s numerator, the share of cash and reserves held by EU/EEA banks further decreased, while the share of central government assets increased.
• Loans to households and non-financial corporates slightly increased over the quarter. Sovereign exposures increased since the end of last year by around EUR 200bn (+5.5%), accompanied by a rise of the share of exposures recognised at fair value, and a rise of the share of shorter-term maturities. The non-performing loan (NPL) ratio remained stable at 1.9%, with material divergences across segments.

Note to editors

Key indicators have been visualised in a dynamic way. To facilitate the navigation, here is the full list of key indicators that you can find in the graphs:

• Slide 1: RoE remained nearly stable on a yearly basis as the rise in net interest (NII), fee (NFCI) and trading (NTI) income compensated for a decline in other operating income. On the cost side, the contribution to deposit guarantee schemes (DGS) and resolution funds declined, which compensated for a rise in other expenses, including taxes. [DOWNLOAD DATA]
• Slide 2: The CET1 ratio increased in Q2, supported by a bigger increase of capital than risk weighted assets (RWAs). The latter was driven by its credit and operational risk components. [DOWNLOAD DATA]
• Slide 3: Whereas the overall NPL ratio remained stable on a quarterly basis, it further increased for exposures to small and medium-sized enterprise (SMEs) and commercial real estate (CRE) (from 4.5% to 4.6% and from 4.3% to 4.4%, respectively). [DOWNLOAD DATA]
• Slide 4: Within high quality liquid assets (HQLA), the share of cash and reserves further decreased and the share of central government assets further increased in Q2 2024. [DOWNLOAD DATA]

The figures included in the Risk Dashboard are based on a sample of 162 banks, covering more than 80% of the EU/EEA banking sector (by total assets), at the highest level of consolidation, while country aggregates also include large subsidiaries (the list of banks can be found here).

Source: Government of the Netherlands

News item | 18-09-2024 | 09:06

In brief

• The spending cuts to the network of Dutch embassies will be lower than originally announced by the government: 10%, instead of 22%.

• The budget increases Dutch support to Ukraine: an additional €252 million for recovery and humanitarian assistance, and €60 million for programmes including efforts to achieve justice for Ukraine. 
• The NATO target of 2% of GDP will be enshrined in law, and achieved through additional spending on defence.

• The government will cut spending on development aid by €300 million.

Ministry of Foreign Affairs

The Ministry of Foreign Affairs budget for 2025 totals almost €12.3 billion. This consists of Dutch contributions to the EU and funds to be spent on security and stability, on strengthening the international legal order and for operating costs of the ministry and the missions.

Lower cuts to the network of embassies

The government will cut spending on embassies and consulates less than originally announced: 10%, instead of 22%. These missions are important for the Netherlands and for Dutch nationals abroad. For example, they help Dutch nationals who get into difficulties in other countries, and they open doors for Dutch companies doing business abroad.

NATO and the Netherlands’ security

The government will pursue a realistic foreign policy that serves the interests of the Netherlands and its people, honours our values, and defends our freedoms. Developments both within and beyond Europe – such as Russia’s war on Ukraine, terrorism and cyberattacks – can affect these freedoms and our security. For the Netherlands, NATO remains the cornerstone of the defence of its people and territory. This is why the government will comply with the NATO target and spend at least 2% of our gross domestic product each year on defence. The Netherlands will host the NATO summit in 2025, which will focus on NATO’s direct importance for our security and prosperity.

Ongoing efforts to protect human rights

A strong international legal order and respect for human rights will make the world more stable, safer, freer and more prosperous. For this reason, the government will try to spare the Human Rights Fund as much as possible when making the cuts, so as to safeguard ongoing efforts to protect the rights of women and girls, equal rights for LGBTIQ+ people, freedom of religion and belief, freedom of expression online and offline, and the protection of human rights defenders and civic space. The Netherlands is a member of the UN Human Rights Council for 2025.

Support for Ukraine

The war in Ukraine affects the security of the Netherlands and the rest of Europe. For this reason the Netherlands will continue to provide Ukraine with political, military, financial and moral support against Russian aggression. The Netherlands is also playing a leading role in achieving justice for Ukraine, for example by hosting a compensation mechanism for war damage and by advocating the establishment of a tribunal in the Netherlands to try crimes of aggression. The government will also provide support for the development of civil society and the rule of law in Ukraine and contribute to humanitarian demining. Almost €60 million has been made available for this purpose for 2025. The government is providing €252 million in support for humanitarian assistance to Ukraine, as well as for repairing vital energy and other infrastructure. This is in addition to the Dutch military support to Ukraine.

Foreign Trade and Development

Less funding for development aid

The government will cut spending on development aid next year by €300 million. This means less funding will be available for all development budget lines. The government will mainly focus on themes on which the Netherlands excels, such as food security, water management and health.

Development aid contributes to the socioeconomic development of poor countries and their peoples, and in the government’s view is also in the Netherlands’ interests. It can strengthen our trade position, prevent illegal migration and keep the Netherlands safe by contributing to stability in Europe’s neighbouring countries. The government will seek to use migration partnerships to make agreements with countries about migration and about combating human trafficking and people smuggling.

Reinette Klever, Minister for Foreign Trade and Development, will have almost €3.6 billion to spend in 2025. Besides for aid, she will use that money to support Dutch companies that do business internationally. To promote business, the government is for example earmarking an additional €100 million for the financial institution Invest International.

Foreign trade accounts for a third of the Netherlands’ income and 2.4 million Dutch jobs. The government will strengthen the Netherlands’ competitiveness, work with the EU on international trade agreements and promote bilateral trade agreements with non-EU countries.

Source: Government of the Netherlands

News item | 17-09-2024 | 16:09

In a letter sent to the House of Representatives today, finance minister Eelco Heinen and climate policy and green growth minister Sophie Hermans wrote that the Dutch government initially does not want to use Dutch taxpayers’ money  for investments in Germany. Participation in TenneT Germany by private investors is currently seen as the best way of structurally solving TenneT Germany’s capital requirements. This could be done through the private sale of shares or flotation. These options will be discussed in the months ahead.

Earlier this year, it was announced that a deal for the full sale of TenneT Germany to the German state was no longer an option after Germany indicated it wanted  to end the negotiations.  The government has affirmed its intention to continue financing TenneT’s activities in the Netherlands and will make a decision in the spring of 2025 on the form this financing will take.

Until structural solutions are in place, the government is providing TenneT with a supplementary bridging loan of €2 billion for 2025 and €17 billion for 2026. Sums of €13 billion and €12 billion had already been made available for 2024 and 2025, respectively.

The loans give TenneT and market parties the certainty they need to continue investing in vital grid improvement projects over the next two years. The loans thus also play a major role in making a successful energy transition possible. TenneT will not need to use the supplementary loan if structural solutions to meet its financing requirements are implemented in a timely manner.

Source: Government of the Netherlands

News item | 17-09-2024 | 15:15

Supporting purchasing power and socioeconomic security

This government is introducing the following measures to improve the purchasing power of people on middle incomes and various vulnerable groups. The rate payable in the first income tax band on income of up to €38,441 per year will be reduced to 35.82%. A new second tax bracket will be introduced, with a rate of 37.48% applicable to income of between €38,441 and €76,817 per year. As a result, working people and people receiving the general old age pension will be left with more money after tax in 2025.

People will also benefit from the reduction in energy tax on natural gas, as a consequence of which everyone will pay €29 less in tax in 2025. The current reduction in excise duties on petrol, diesel and LPG (in Dutch) will be extended by one year and these duties will not be adjusted for inflation. The duties (per litre) will remain at 79 cents for petrol, 52 cents for diesel and 19 cents for LPG, just as in 2024.

In addition the government will be taking further measures to support people on low incomes, such as increasing housing benefit and supplementary child benefit.

Improvements to the tax system

The process of making improvements to the tax system will continue under this Tax Plan as well. The government is taking a number of measures in response to assessments that have shown that certain schemes no longer serve their intended purpose, or do not so do efficiently. As of 2025, there will no longer be any need for complicated calculations in tax returns when deducting additional transport costs arising from illness or incapacity. For visits to a doctor, hospital or pharmacy, a fixed amount of 23 cents per kilometre will become deductible. People who incur additional transport costs on account of a serious illness or a disability will also be able to deduct a fixed amount of €925. It will no longer be necessary to keep receipts for example for fuel, insurance or adaptations to vehicles. Travel expenses for journeys made by taxi or public transport will also continue to be deductible based on the costs actually incurred.

There will be amendments to the rules applicable under the business succession scheme (BOR) and the deferral scheme for a director-major shareholder passing on a substantial interest in a business (DSR ab). These amendments will simplify the schemes. As of 1 January 2025 the period for which the donor must have possessed a substantial interest and for which the recipient must retain the interest and continue the business will be reduced from five to three years, which means that business owners will have greater flexibility at an earlier stage without losing the right to benefit from the BOR scheme. As of 1 January 2026 access to the BOR and DSR schemes will be restricted to those holding ordinary shares representing a stake of at least 5%. In addition, action will be taken to counter misuse of the BOR through arrangements where an older relative buys into a business mainly to reduce the inheritance tax payable by the intended heir and cases where double use is made of the BOR. 

Furthermore, as of 2026 the reduced VAT rates for providing accommodation and for certain cultural goods and services are being abolished. Consequently, with effect from 1 January 2026 the general rate of 21% will apply. Sports associations are excluded from this measure and compensation will be provided for teaching materials for schoolchildren up the age of 18. 

As of 2025, the deduction for donations made by businesses will be abolished. Donations will no longer be deductible for the purposes of corporation tax. In addition, the rules on ‘donations by the company’ (under which donations made by a company were not regarded as profit distribution) are being scrapped, which means that as of 2025 such donations will once again be regarded as profit distributions and subject to tax. Sponsoring and advertising are business expenses that will remain deductible.

Undesirable tax avoidance practices will also be tackled, such as arrangements used in real estate transactions to circumvent the VAT that is intended to be payable. 

In order to boost the housing market, the general rate of transfer tax on homes that are not classed as primary residences is being reduced from 10.4% to 8% in 2026.

An attractive business climate

The government wants the Netherlands to remain an attractive place for companies to locate, grow and attract the skilled personnel that they require. Having a strong competitive position and predictable tax policy are important priorities in this connection, enabling companies to plan for the long term. The planned scaling back of the tax deduction for ‘expat’ employees will be partially reversed as of 2027: a 27% deduction will be allowed for a period of five years. The general qualifying salary under the scheme will be raised from €46,107 to €50,436. The qualifying salary for employees aged under 30 with a master’s degree will also be raised. The dividend tax share buyback facility for listed companies will also continue to exist, exempting such companies from dividend tax on purchases of their own shares subject to certain conditions. We will also be raising the general limit on interest deduction for corporation tax purposes from 20% to 25%, bringer it closer into line with the European average. In addition we will be relaxing the rules on the exemption for profits arising from debt waivers for corporation tax where a company has losses in excess of €1 million. This will make it easier for businesses that are essentially healthy to reach an agreement with their creditors.

Keeping the public finances healthy

This government regards healthy public finances as crucial and will be implementing a number of measures set out in the framework coalition agreement and additional measures to absorb a number of financial setbacks. For example, we will increase the tax on games of chance in two steps, to 34.2% in 2025 and 37.8% in 2026. This is the tax that people pay on winnings of more than €449 from a lottery or casino in the Netherlands. We will be scrapping the reduction in the box 3 rate – as planned in the framework coalition agreement – (applicable to income from savings and investments), which will therefore remain at 36%. The net metering scheme for small-scale users of solar panels will be abolished as of 2027, which means that owners of solar panels will no longer be able to offset the electricity that they return to the grid against the electricity that they purchase. Employers will pay a higher general unemployment fund (AWF) and invalidity insurance fund (AOF) contribution for their employees. Various groups will thus be asked to make a contribution.

Box 3

In addition to the measures in the Tax Plan, the government has also taken a decision on who will be eligible for additional compensation in response to the Supreme Court’s judgment of 6 June 2024 regarding box 3. It has been decided that the target group for compensation will be broad. All taxpayers who have (or have had) an assessment imposed subsequent to what has become known as the Supreme Court’s ‘Christmas judgment’ of 24 December 2021 can file the ‘actual return’ form if their actual return was lower than the assumed flat-rate return. Taxpayers who received assessments in the years 2019 and 2020 are required to submit a request for automatic reduction before the five-year time limit expires. Taxpayers with a 2019 assessment must submit their request by the end of this year, while those with a 2020 assessment have until the end of 2025 to do so. Taxpayers with an assessment from 2017 or 2018 must already have submitted a request for automatic reduction in order to make use of the form.

The Supreme Court held that the actual return should be determined on the basis of the taxpayer’s entire box 3 capital, taking into account both direct and indirect returns, and without deducting the capital yield tax allowance. The government will adhere to this definition of actual return.

Source: Government of the Netherlands

News item | 17-09-2024 | 14:03

The Netherlands is among the world’s most prosperous countries. Our level of wellbeing is high and people are generally satisfied with their lives. But averages do not tell the whole story. For example, some people face the worry of not knowing whether they will be able to pay their bills at the end of every month. Others are unable find a home, concerned about the number of asylum arrivals, or worried about their security. There are also staff shortages and a lack of space, and the public finances will deteriorate if no action is taken. These are pressing problems that the government is addressing.

Government tackling problems

To make sure it pays more to work, the government will lower the rate payable in the first income tax band and introduce a new second band. For people in financial difficulties there will be a targeted package of measures to address, for example, the issue of problem debt. The school meal programme will be continued. To prevent more people falling into poverty, housing benefit and supplementary child benefit will be adjusted. The government also plans to build as many new homes as possible, with a target of 100,000 new homes per year.

Security is a priority for this government. In the coming years there will be more money available for the police and – in order to bring migration under control – for border control. The government will also invest heavily in the armed forces, bringing Dutch defence expenditure into line with the NATO norm of 2% of gross domestic product (GDP).

Minister Heinen: This government is here to tackle the problems facing ordinary people in the Netherlands. A person who works hard and earns an average wage should have something to show for it at the end of the day. It’s not acceptable in a prosperous country like the Netherlands for some people to endure years of adversity because they have to wait for care or can’t find a home. We also have to be careful with taxpayers’ money and not leave future generations to pick up the bill. With this Budget Memorandum, the government is taking an important step in tackling these challenges. This has entailed making clear and necessary choices.

State Secretary Idsinga: With this Tax Plan, we are starting to fulfil a number of important commitments which this government has made. We are supporting working people on middle incomes and various vulnerable groups, ensuring the Netherlands remains attractive to businesses and taking a number of tax measures that will help keep public finances healthy. I am also committed to the continual improvement of our tax system.

State Secretary Achahbar: Too many people are facing hardship. They face the worry of not knowing whether they will be able to pay the rent and their grocery bills at the end of the month. In order to improve people’s socioeconomic security, we are making a number of improvements to the supplementary benefits system. People will get longer to apply for benefits, and people whose partners are, out of necessity, unable to be with their family, will have the same right to benefits as single people. An additional €2.3 billion was previously made available to improve the various additional channels being used to provide compensation to parents affected by the serious failings in the childcare benefit system.

Public finances

The government stands for healthy public finances and fiscal discipline, so that buffers are built up in good times that can be used in times of economic adversity. That avoids the need to raise taxes or pass on the bill to future generations. The government will therefore ensure that, within its term in office, the budget deficit will remain under 3% of GDP and the national debt will remain below 60% of GDP. The year 2026 will be a one-off exception in this regard. This is due to a one-off cost item relating to military pensions. In 2025 the budget deficit is projected to be 2.8% and the national debt 46.6%.

The Netherlands Bureau for Economic Policy Analysis (CPB) forecasts that in 2029 the budget deficit will exceed 3% and that the national debt will rise to over 60% in the medium term. The government is therefore reining in government expenditure. For example by reducing subsidies and the number of civil servants. But also by extending the comprehensive healthcare agreement to limit the rise in healthcare expenditure and by making choices in the field of social security. In addition the government is cutting expenditure on development cooperation and curbing the influx of asylum seekers.

Tax Plan 2025

Besides various tax measures that contribute to purchasing power, the Tax Plan also sets out a number of steps to improve the tax system. They include a proposal which eliminates the need for people filing tax returns to make complicated calculations when deducting additional transport costs related to illness or incapacity. Assessments show that certain schemes do not serve or no longer serve their intended purpose, or do not do so efficiently. The Tax Plan therefore includes a number of changes to business succession tax relief schemes and, as of 2026, the reduced rates of VAT for providing accommodation and certain cultural goods and services are being abolished. Sports associations are excluded from this measure and compensation will be provided for teaching materials in primary and secondary education. In addition, this Tax Plan will again tackle a number of undesirable tax avoidance arrangements, such as those employed in connection with real estate.

The government wants the Netherlands to remain attractive to businesses and is enhancing the business climate through a number of changes to the tax system. One of those measures is the retention of the tax deduction for ‘expat’ employees, although it will be amended: a 27% deduction will be allowed for a period of five years. The dividend tax share buyback relief will also continue to be available. Listed companies can use the exemption to buy back their own shares.

The government attaches great importance to healthy public finances. It is introducing the tax measures outlined in the framework coalition agreement and taking steps to offset a number of financial setbacks. Tax on games of chance will be increased in a number of steps, the previously announced reduction in the box 3 rate is not going ahead, the net metering scheme will be abolished as of 2027, and employers will pay higher general unemployment fund (AWF) and invalidity insurance fund (AOF) contributions for their employees.

Source: Government of the Netherlands

News item | 13-09-2024 | 14:25

The programme will help the government carry out its work for and with the Netherlands. It details plans on key issues including socioeconomic security and housing, asylum and migration, future prospects for agriculture and fisheries, the economy and entrepreneurship, green growth, energy and climate change, education and healthcare, good governance, and national and international security.

Source: European Banking Authority

The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) today issued their Autumn 2024 Joint Committee Report on risks and vulnerabilities in the EU financial system. The Report underlines ongoing high economic and geopolitical uncertainties. The ESAs warn national supervisors of the financial stability risks stemming from these uncertainties and call for continued vigilance from all financial market participants. For the first time, the Report also includes a cross-sectoral deep dive into credit risks in the financial sector.

The continued decline of inflation in late 2023 and early 2024 has led central banks to begin the shift towards looser monetary policy. Financial markets performed strongly in anticipation of future rate cuts and an improving macroeconomic outlook, save for the short-lived but sharp equity price dip in August. Considerable uncertainties, nonetheless, remain regarding the future path of the global economy, inflation and monetary policy and the interplay of these factors across different jurisdictions.

Amid ongoing geopolitical developments, such as the Russian aggression against Ukraine, the war in the Middle East and elections in the European Union and the United States, there is potential for sudden shifts in the economic outlook and market expectations. High market volatility in August provided a glimpse of the continued potential for sudden shifts in outlook and market expectations. In sum, the highly uncertain current environment continues to present material financial stability and operational risks that necessitate vigilance from all financial market participants.

Against the backdrop of these risks and vulnerabilities, the Joint Committee of the ESAs advises national competent authorities, financial institutions and market participants to take the following policy actions:

• financial institutions and supervisors should remain prepared to face the impacts of continued high interest rates on the real economy;
• credit risk should continue to be monitored and carefully managed as its potential materialisation remains a concern. This underlines the need for adequate provisioning levels and forward-looking provisioning policies, while maintaining prudent and up-to-date collateral valuation;
• financial institutions need to be flexible and agile and have proper plans and processes in place to address unexpected short-term multi-fold challenges;
• financial institutions and supervisors should remain vigilant regarding the impact of inflation on product development.
• financial institutions and supervisors should remain vigilant to operational and financial stability risks that could arise from cyber-risks, as exemplified by the  global IT disruption in July from the failed software update of a widely used cybersecurity company. 

Notes to Editors

This Autumn 2024 Joint Committee update on Risks and Vulnerabilities was presented to the EFC FST meeting on 6 September 2024 as input from the ESAs to the meeting.

Source: European Banking Authority

​Notes to editors​