The EBA (European Banking Authority) has published their Risk Dashboard, which summarises the main risks and vulnerabilities in the EU/EEA banking sector using Q1 data. The set of banks contributing to the data was over 80% of the european banks.
Not surprisingly cyber risk is seen as one of the main contributing factor for operational risk (this improved over the last year, where 90% saw it as a contributing factor for risk whereas 2019 only 50% are seeing cyber risk as one of the main contributors for operational risk and for increasing operational resilience.
This is particularly interesting because there have been a couple of significant outages this year that also affected the reputation of the affected banks.
At the same time the dashboard reveals that banks need to cut operational costs in order to stay profitable and competitive as indicated in the quote below.
In order to improve their net income, banks mainly aim to reduce their operating costs and to diversify their income streams by increasing fees and commissions through asset management and payment services.