Bucharest, 27 October 2022 - The European Systemic Risk Board (ESRB) has issued a warning on the current vulnerabilities in the financial system, given the increasing systemic risks to financial stability and the deteriorating macroeconomic prospects.
The ESRB considers that there is a need for private sector institutions, market participants, and relevant authorities to continue to prepare for the materialization of severe risks.
In view of the warning issued by the ESRB, the Financial Supervisory Authority has approved a set of recommendations addressed to regulated and supervised entities, aimed at further promoting prudent conduct and applying preventive measures aimed at mitigating or managing specific risks.
Thus, in order to counter vulnerabilities and to increase financial and operational resilience, regulated and supervised entities should pay increased attention to monitoring the evolution of the risks to which they are exposed, the appropriateness of dividend distribution policies (reduction, suspension or waiver of payment or distribution of dividends) and the intensification of the work of the functions ensuring the internal control system.
More details are available HERE