Regulatory Alerts2026-05-25
Financial stability further under pressure due to Iran war
The Netherlands' financial stability authorities issued their May 2026 report warning that Middle East geopolitical escalation, rising inflation, and slowing growth are severely pressuring financial stability. The report requires asset managers to implement rigorous liquidity risk management and stress testing, urges supervisors to closely monitor the opaque private credit market, and mandates robust governance to counter cyber vulnerabilities and AI-amplified fraud stemming from digital concentration. It explicitly advises against easing mortgage lending standards, calls for collective action on housing foundation damage risks, and instructs institutions to abandon reliance on historical data in favor of proactive resilience planning against abrupt, high-impact shocks.