Stacking risks: uncertainty demands a resilient and agile financial sector

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Press Release

13/04/26

The stacking of economic shocks, technological accelerations, and international tensions makes the environment fundamentally uncertain. The financial sector must adapt to unpredictability and erratic market movements. Laura van Geest, CEO of the Dutch Authority for the Financial Markets (AFM), emphasized this during the presentation of the AFM Annual Report 2025 on Monday, 13 April. Alongside the annual report, the AFM published reports on two topics: the costs of foundation repair and the impact of AI on capital markets.

In brief

Stacking of risks intensifies pressure on financial markets

Homeowners vulnerable: ensure responsible financing for foundation repair

Good preconditions crucial for AI deployment on capital markets

Stacking of risks intensifies pressure on financial markets

Economic uncertainty, technological accelerations, and persistent geopolitical tensions are increasingly intertwined. The situation surrounding Iran demonstrates how quickly events impact energy prices, inflation expectations, and market dynamics. This creates an environment where shocks increasingly alternate and reinforce each other at a faster pace.

'We are dealing with a stacking of risks that would traditionally make us nervous just from one. This has become our new normal: unpredictable, short-cyclical, and cumulative. In the coming period, we would do well to prepare for it. True stability does not lie in trying to return to the old equilibrium, but in our ability to cope with that unpredictability,' states Laura van Geest.

For the financial sector, this means, according to the AFM, that resilience and agility are more important than ever. Companies must be able to identify risks faster, maintain robust buffers, and prepare for developments that no longer arrive one by one, but in clusters and at an ever-increasing pace. For the AFM as a supervisor, this also requires maintaining a sharp focus on risks, more intensive cooperation within Europe, and regulation that evolves alongside a world where uncertainty is the standard.

Homeowners vulnerable: ensure responsible financing for foundation repair

New research by the AFM provides insight into the repair and financing challenge for homeowners with foundation problems. Half a million homeowners have a vulnerable foundation. For over 120,000 homeowners, foundation repair is necessary – the total repair challenge amounts to 11 billion euros. The majority cannot pay for repairs immediately, and for over 25,000 homeowners, a loan does not appear to be a responsible option. The AFM considers this a complex challenge that the sector and stakeholders must tackle together.

Good preconditions crucial for AI deployment on capital markets

In an exploratory study on artificial intelligence (AI) on capital markets, the AFM notes that autonomous and self-learning systems offer clear opportunities, such as more efficient price formation and better-informed investment decisions. At the same time, as this technology further develops, the number of decisions made by AI increases, while insight into the underlying trade-offs decreases. This increases the risk of sudden market volatility and new, hard-to-detect forms of market abuse, and complicates supervision. The AFM therefore emphasizes that human involvement, the ability to intervene, and clear accountability remain indispensable preconditions.

Contact regarding this article

Charlene Zikmund

charlene.zikmund@afm.nl

06 29 42 08 87

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