AFM highlights resilience of financial sector in rapidly changing environment

The Dutch Authority for the Financial Markets (AFM) notes that an uncertain economic outlook and monetary tightening have not led to major turmoil in financial markets. However, underlying trends and developments could turn the tide and thus pose a potential risk to financial stability. The AFM sees risks related to the macroeconomic environment, geopolitical developments, further digitalisation, increasing market concentration and the impact of climate change on the housing market. It is important that financial institutions and households are prepared for possible shocks and resilient enough to cope with them.