Regulatory Alerts2025-11-13
Scenario Thinking Crucial for Capital Market Stability - NL Summary
The Dutch Authority for the Financial Markets (AFM) issued a November 2025 summary highlighting that hidden vulnerabilities in European capital markets, driven by geopolitical tensions and behavioral convergence, threaten systemic stability. The document argues that scenario thinking is essential to identify archetypal risks such as institutional concentration and geographic dependence before they trigger cascading failures. By adopting this approach, market participants can detect risks earlier, limit crisis impacts, and ensure the resilience of the European economy.
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