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EBA Sounds Alarm On Geopolitical Risks Facing European Banks

by THEFUTURE.TEAM

The European Banking Authority (EBA) has raised significant concerns regarding the heightened geopolitical risks currently affecting European banks. In its latest Risk Assessment Report, the EBA underscores the myriad of challenges banks are grappling with, including uncertain economic growth prospects, volatile interest rates, and an increase in geopolitical tensions. These factors are contributing to a complex and unstable financial environment.

A key concern highlighted in the report is the rise in non-performing loans (NPLs). Despite this, many banks are planning to expand their lending exposures and increase their long-term market-based financing. This approach signals a strategic move to maintain competitiveness and market share, even amidst growing financial uncertainties. However, this strategy is not without its risks, as increased lending can exacerbate the issue of NPLs if economic conditions deteriorate further.

Moreover, the EBA has identified a surge in cyber risks and operational threats. As digital transformation accelerates within the banking sector, vulnerabilities to cyber-attacks and operational disruptions have become more pronounced. The EBA’s report calls for enhanced cybersecurity measures and robust operational risk management frameworks to mitigate these threats.

The geopolitical landscape, marked by ongoing conflicts and trade tensions, adds another layer of complexity to the banking sector’s risk profile. These geopolitical risks have far-reaching implications, potentially affecting everything from cross-border transactions to regulatory environments.

In response to these multifaceted risks, the EBA recommends that banks adopt a more vigilant and strategic approach. This includes strengthening their risk management practices, enhancing their cybersecurity infrastructure, and being more cautious in their lending practices. By doing so, banks can better navigate the uncertainties and safeguard their financial stability.

The EBA’s report serves as a critical reminder for banks to remain agile and responsive to the rapidly changing risk landscape. As geopolitical and economic uncertainties continue to evolve, the ability of banks to adapt and implement robust risk mitigation strategies will be pivotal in ensuring their resilience and long-term viability.

Only 1% Of Cyprus Farms Use Precision Farming Technologies

by THEFUTURE.TEAM

Cyprus remains one of the European Union’s least digitised agricultural economies, with just 1% of farms using precision farming technologies in 2023, according to Eurostat.

The findings come as the EU continues to encourage the adoption of digital tools aimed at improving agricultural productivity, efficiency and sustainability.

Internet Access Expands, But Digital Uptake Lags

Internet access has improved across the bloc, although adoption remains uneven. Eurostat found that 43% of EU farms had internet access in 2023, with northern and central European countries leading the way.

Denmark, Germany, Slovakia, Latvia, the Czech Republic and Austria all reported internet access rates above 90%.

Greater connectivity, however, has not translated into widespread digital adoption. Farm management information systems, which help farmers manage day-to-day operations, were used by only about 11% of EU farms. France was a notable exception, with around 60% of farms using the technology.

Precision Farming Concentrated In Larger Operations

Robotics adoption also remained relatively limited, with only about 7% of EU farms using robotic technologies. Overall, around 18% of farms with utilised agricultural area employed at least one precision farming technology or practice in 2023.

These included robotics for plant protection, band spraying, variable-rate application, precision crop monitoring and soil analysis. Despite representing fewer than one in five farms, these holdings accounted for around 44% of the EU’s utilised agricultural area.

The figures suggest that precision farming remains concentrated among larger agricultural businesses, where investment in digital technologies is typically easier to support.

Cyprus Lags Behind EU Leaders

Luxembourg, Finland and Estonia recorded the highest shares of utilised agricultural area managed by farms using precision farming technologies, each exceeding 75%.

At the other end of the ranking, Cyprus recorded just 1%, while Greece and Romania reported between 10% and 15%. The results indicate that Cyprus remains at an early stage of digital adoption in agriculture, even as precision farming becomes more widespread across parts of the European Union.

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