The European Supervisory Authorities (EBA, EIOPA and ESMA) identified external dependencies, emerging technologies and private credit as key vulnerabilities for the EU financial system in their Autumn 2026 risk update.
The ESAs say the EU private credit market remains relatively small, but its rapid growth, limited transparency and growing links with the wider financial system could create risks during periods of stress.
The vulnerabilities they list include infrequent and potentially inaccurate loan valuations, high credit risk, uncertainty about leverage across the value chain, and data gaps.
They warn that liquidity mismatches in private credit funds could amplify redemption pressures and spill over to banks through funding and common exposures.
The key findings were presented to the Financial Stability Table of the EU's Economic and Financial Committee on 10 September 2026.
Primary source
European Banking Authority (joint ESAs press release) ↗
Written by Rainmakrr in our own words from the source above, published 23 September 2026.