In short
- ESMA highlights vulnerabilities in private credit due to rapid growth, limited transparency and increasing links with the wider financial system as of 10 September 2026.
- ESMA calls for supervisors and market participants to strengthen preparedness and monitor risks from external dependencies, private credit and emerging technologies in its Autumn 2026 update.
What happened
The European Supervisory Authorities (EBA, EIOPA and ESMA) identified key vulnerabilities in the EU financial system, including reliance on non-EU ICT service providers, cyber threats from advanced AI, and risks in the rapidly growing private credit sector. These findings were presented at the Financial Stability Table of the EU’s Economic and Financial Committee on 10 September 2026.
The ESAs urge supervisors and market participants to strengthen crisis preparedness, resolution coordination, and regulation. They emphasize proactive monitoring and management of risks related to external dependencies, private credit, and emerging technologies, including AI and quantum computing, to maintain resilience amid ongoing geopolitical tensions.
Dependence on ICT service providers outside the European Economic Area remains a particular concern, alongside growing cyber risks linked to increasingly capable AI models.
In numbers
- Autumn 2026 Date of ESAs risk update
Named in this item
Organization, regulator EU — —
Organization, regulator EU — —
Organization, regulator EU — —
What compliance teams should check
- Review exposures to non-EU ICT service providers and payment systems as highlighted by ESMA.
- Assess transparency and valuation practices in private credit portfolios, referencing ESMA's concerns about infrequent and potentially inaccurate loan valuations.
- Monitor dependencies on non-EU/EEA service providers and manage risks from advanced AI and quantum computing as recommended by the ESAs Joint Committee.
Why it matters
This story underscores the growing vulnerabilities in the EU financial system stemming from external dependencies, especially on non-EU ICT providers, and the rapid evolution of cyber threats linked to advanced AI. For AML/CFT compliance, these risks can impact operational resilience, data integrity, and the ability to detect and respond to financial crime. The expansion of private credit with limited transparency further complicates risk management, making it crucial for compliance officers to proactively monitor exposures and adapt controls to emerging threats and regulatory expectations.
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