ESRB warns of mounting risks amid geopolitical tensions and rising asset valuations in EU banking sector

Regulation2812 words13 min readabout 2 hours ago

The European Systemic Risk Board highlights persistent threats to financial stability due to geopolitical tensions, high risk appetite, and technological vulnerabilities, prompting increased regulatory vigilance across the EU and Cyprus.

The European Systemic Risk Board (ESRB) has emphasized that while the stability of EU banks remains generally solid, significant risks continue to threaten the financial landscape amid ongoing geopolitical tensions. Its latest market review highlights that although recent trade agreements between the U.S. and the EU have lessened some trade concerns, uncertainties persist, necessitating vigilant monitoring of their effects on European businesses, households, and the financial sector.

A key concern raised by the ESRB is the surge in risk appetite that has driven asset prices to historically high levels, levels that now appear disconnected from underlying macroeconomic realities. The report warns that increased economic or political instability could swiftly reverse investor confidence, leading to widespread risk aversion. Recent stress tests indicate that European banks exhibit resilience to potential shocks; however, vulnerabilities linked to public debt are still present. Several EU member states face weak medium-term growth prospects and deteriorating fiscal balances, often tied to political uncertainty. Moreover, rising security threats could escalate defense expenditures, further exacerbating fiscal pressures.

Regarding cryptocurrencies, the ESRB shared plans to soon publish a detailed report on stablecoins, crypto-investment products, and multifunctional financial groups. The upcoming document will highlight vulnerabilities in schemes with issuers outside the EU and advocate for swift policy responses. It also underlines that inconsistent regulatory frameworks across jurisdictions may create supervisory inequalities.

An additional focus is on artificial intelligence (AI) and its potential systemic risks. The ESRB approved the release of a forthcoming report from its Advisory Scientific Committee that explores AI's benefits alongside risks arising from reliance on a limited number of providers or homogenous models, which could lead to common exposures and amplify vulnerabilities in financial markets.

At the national level, the Central Bank of Cyprus (CBC) has actively enhanced banking resilience through several measures. It updated capital requirements for the country’s biggest banks, classified as Other Systemically Important Institutions (O-SIIs), with reserve levels gradually increasing over three years. For example, the Bank of Cyprus was designated as an O-SII and required to hold a reserve that will rise from 1.875% in 2024 to 2% in 2026. Hellenic Bank’s requirements will incrementally grow from 1.25% in 2024 to 1.75% in 2026, while Eurobank’s reserves will increase from 0.75% to 1% over the same period. Astrobank and Alpha Bank will maintain a steady requirement of 0.25%. The CBC also adjusted the countercyclical capital buffer (CCyB), raising it from 1% to 1.5% effective January 2026, as part of efforts to prepare for heightened systemic risks tied to global economic and geopolitical uncertainties, including tensions in the Middle East and escalation in Ukraine.

In the context of stress-testing, the European Banking Authority (EBA), in collaboration with the ESRB and the European Central Bank (ECB), conducted its 2025 EU-wide stress test for banks in Cyprus. Results indicated that the Bank of Cyprus participated in the exercise as part of the group of 45 banks categorized in bucket 1 \u2014 representing the highest level of CET1 ratio depletion in the scenario. The bank was placed in this group, which included only six banks out of the 45 participating institutions. The stress test projected that, under adverse conditions, the Bank of Cyprus would experience a maximum CET1 depletion of less than 300 basis points, with a minimum CET1 ratio remaining at least 14%, and a minimum Tier 1 leverage ratio of 6% or higher. The overall resilience of European banks remains strong, despite projected losses of €628 billion under severe scenarios, and the exercise reinforces the importance of robust capital buffers.

Further, the CBC announced an increase of its countercyclical capital buffer from 1% to 1.5%, starting January 2026, to better prepare banks for potential cyclical risks stemming from global uncertainties. The Bank also clarified that no Cypriot Investment Firms (CIFs) were designated as O-SIIs for 2024, as they do not meet the EU thresholds outlined in the Capital Requirements Directive and Regulation.

Despite Cyprus’s generally positive economic outlook, the CBC and regional authorities underscore the importance of ongoing vigilance. Both the European Systemic Risk Board and the ECB have recently highlighted increased risks across the EU financial system, calling for proactive measures. The combination of global geopolitical developments, economic uncertainties, and technological risks underscores the need for continuous, adaptable regulation to sustain financial stability.

In summary, while EU banks and Cyprus’s financial sector demonstrate considerable resilience, the evolving geopolitical and macroeconomic environment requires local and European regulators to remain alert and ready to implement necessary policy adjustments.

Source: Noah Wire Services

Verification / Sources

https://cyprus-mail.com/2025/10/03/eu-banks-resilient-but-risks-remain-from-instability-warns-esrb - Please view link - unable to able to access data
https://cyprus-mail.com/2025/10/03/eu-banks-resilient-but-risks-remain-from-instability-warns-esrb - The European Systemic Risk Board (ESRB) has released a report highlighting elevated risks to financial stability in the European Union due to ongoing geopolitical uncertainties. Despite a partial reduction in trade uncertainty following the agreement between the United States and the European Union on tariffs, the ESRB emphasizes the need for authorities to closely monitor the impact of this agreement on the behavior of European businesses, households, and the financial sector. The report also notes an increased appetite for risk, leading to asset valuations reaching historic highs that now appear inconsistent with underlying macroeconomic fundamentals. The ESRB warns that investor optimism could quickly turn into risk aversion if economic or political uncertainty intensifies. However, recent stress tests on European banks indicate that the sector remains resilient to potential challenges. The report also addresses public debt risks, highlighting weak medium-term growth prospects and deteriorating primary fiscal balances in some countries, often linked to political uncertainty. Additionally, the ESRB cautions that worsening security threats could further increase defense spending, thereby adding to fiscal pressures. Regarding cryptocurrencies, the ESRB announces plans to publish a report addressing stablecoins, crypto-investment products, and multifunctional financial groups, underlining the vulnerabilities embedded in schemes with issuers located outside the European Union and calling for an immediate policy response. The report also highlights that differing regulatory approaches may result in inequalities in prudential supervision. Finally, the ESRB approves the release of a report by its Advisory Scientific Committee on artificial intelligence and systemic risk, recognizing the benefits of artificial intelligence while examining how reliance on a small number of providers or uniform models may generate common exposures in financial markets and amplify existing or new risks. This report is expected to be published in the coming weeks.
https://cyprus-mail.com/2025/01/21/cbc-takes-action-to-bolster-banking-resilience - The Central Bank of Cyprus (CBC) has implemented significant measures over the past two years to strengthen the financial resilience of the nation's banking system. These actions, detailed in its 2023 macroprudential policy report to parliament, aim to mitigate systemic risks and ensure stability in the financial sector. In 2024, the CBC introduced updated capital requirements for Cypriot banks identified as Other Systemically Important Institutions (O-SIIs). Five major banks—Bank of Cyprus, Hellenic Bank, Eurobank, Astrobank, and Alpha Bank—have been designated as O-SIIs and are required to maintain specific capital reserves over the next three years. The revised reserve requirements, effective from January 2024, specify that the Bank of Cyprus must maintain a reserve of 1.875 per cent for 2024, which will rise to 1.9375 per cent in 2025 and further increase to 2 per cent in 2026. Hellenic Bank is required to hold 1.25 per cent in 2024, with incremental increases to 1.50 per cent in 2025 and 1.75 per cent in 2026. Additionally, Eurobank’s reserves are set at 0.75 per cent for 2024, 0.875 per cent for 2025, and 1 per cent for 2026. Meanwhile, Astrobank and Alpha Bank are required to maintain a consistent reserve rate of 0.25 per cent across all three years. The CBC also reassessed the countercyclical capital buffer (CCyB) to respond to evolving systemic risks. In June 2023, the CCyB was increased from 0.5 per cent to 1.0 per cent, with implementation set for June 2024. A further increase to 1.5 per cent was decided by January 2025, effective from January 2026. These adjustments reflect the CBC’s recognition of heightened systemic risks due to global economic uncertainties, geopolitical tensions, and their potential impact on Cyprus’ macroeconomic environment. The aim is to channel a portion of banks’ profits towards resilience, creating larger reserves to absorb potential losses during crises. Following a collaborative review with the Cyprus Securities and Exchange Commission, the CBC concluded that no Cypriot Investment Firms (CIFs) qualify as O-SIIs for 2024. The review determined that CIFs do not meet the thresholds set by the EU’s Capital Requirements Directive (CRD) and Regulation (CRR). As a result, no CIFs fall under the O-SII framework. The CBC chose not to implement certain macroprudential measures adopted by other EU countries. For instance, Belgium’s decision to impose a 6 per cent systemic risk buffer on retail banking exposures and Portugal’s sectoral buffer of 4 per cent were deemed unnecessary for Cyprus. Similarly, Denmark’s measure to introduce a 7 per cent buffer for non-financial entities in real estate and construction was also excluded. The CBC emphasised the importance of a proactive approach to financial stability in its report. While the Cypriot financial system remains resilient, the CBC highlighted the need for vigilance due to persistent uncertainties in the global and domestic macroeconomic environment.
https://cyprus-mail.com/2025/01/21/eba-publishes-stress-test-scenarios-for-cyprus-economy - The European Banking Authority (EBA), in coordination with the European Systemic Risk Board, has released macroeconomic scenarios to assess the resilience of banks in Cyprus as part of the EU-wide 2025 stress test. The scenarios, which include baseline and adverse projections, aim to evaluate the financial sector’s ability to withstand negative economic and financial shocks while identifying systemic risks. Under the baseline scenario, Cyprus’ economy is projected to grow by 3 per cent in 2025, 3.1 per cent in 2026, and 3 per cent in 2027. Conversely, the adverse scenario foresees a contraction of 2.5 per cent in 2025, followed by a steeper decline of 4.7 per cent in 2026, before a modest recovery of 0.7 per cent in 2027. Growth for 2024 is estimated at 3.7 per cent, based on historical data. The EBA's stress test scenarios are designed to assess the resilience of banks in Cyprus to various economic shocks, providing valuable insights into potential vulnerabilities and the effectiveness of existing risk management strategies within the banking sector.
https://cyprus-mail.com/2025/01/15/cbc-cites-geopolitical-risks-in-raising-buffer-rate-to-1-5-per-cent - The Central Bank of Cyprus (CBC) has announced an increase in the countercyclical capital buffer (CCyB) requirement for licensed credit institutions from 1 per cent to 1.5 per cent. The change, aimed at addressing heightened cyclical systemic risks, will take effect on January 14, 2026. In its statement, the CBC explained that the current buffer level of 1 per cent was deemed insufficient, prompting the adjustment. The increase directs part of the banks’ profitability toward strengthening their resilience, creating a larger capital reserve to absorb losses during crises or extreme events, thus ensuring the uninterrupted flow of credit to the real economy. While Cyprus’ economic outlook remains positive, the CBC cautioned against rising global uncertainties that could impact the domestic macroeconomic environment and the banking sector. The likelihood of potentially severe adverse events in the global economy has increased, primarily due to geopolitical developments and disruptions. The CBC highlighted several key risks, including the potential escalation of the conflict in the Middle East, the further internationalisation of the war in Ukraine, and a growing trend toward protectionism. These factors could result in significant new trade restrictions, posing challenges to the macroeconomic environment and the Cypriot banking sector. Additionally, the CBC pointed to a rising risk of reputational damage within the financial sector. Elsewhere, the central bank underscored that its decision aligns with broader concerns across the European Union (EU). Both the European Systemic Risk Board (ESRB) and the European Central Bank (ECB) have identified increased financial stability risks within the EU in recent months. In an announcement released on December 5, 2024, the ESRB’s general board called for the EU to reassess its financial resilience needs amidst a shifting environment, underscoring the importance of bolstering the financial system’s robustness.
https://cyprus-mail.com/2025/08/02/bank-of-cyprus-delivers-strongest-stress-test-performance-to-date - The European Central Bank (ECB) and the European Banking Authority (EBA) have published the results of the 2025 EU-wide stress test, showing that the euro area banking sector is resilient even under a severe economic downturn scenario. Following the publication of the results, the Bank of Cyprus (BoC) announced that it achieved its best-ever outcome in this year’s stress test, reflecting what it described as a very strong balance sheet quality, profitability, and robust capital base. The stress test was conducted by the EBA in cooperation with the ECB and national supervisory authorities. The Bank of Cyprus participated in the exercise as part of the sample of the smaller financial institutions in the euro area supervised by the Single Supervisory Mechanism (SSM). This year’s outcome places the Bank of Cyprus in bucket 1, the highest level, for maximum CET1 ratio depletion, minimum CET1 ratio, and minimum Tier 1 leverage ratio. The bank added that it had achieved a maximum Common Equity Tier 1 (CET1) ratio depletion of less than 300 basis points, a minimum CET1 ratio of at least 14 per cent, and a minimum Tier 1 leverage ratio of at least 6 per cent. This result has only been achieved by six out of the 45 SSM banks that took part in the exercise. The stress test is not a pass-or-fail exercise but is instead intended to provide information about the resilience of the European banking sector under an uncertain and changing macroeconomic environment. According to the ECB, the adverse scenario assumed an escalation in geopolitical tensions, causing significant, negative, and prolonged impacts on trade and confidence that affect private consumption and investment at both national and global levels. At the end of the three-year projection horizon in the adverse scenario, the ECB said the aggregate CET1 ratio of the euro area banking system would stand at 12 per cent, four percentage points lower than its starting point. The ECB said the exercise covered 96 euro area banks under its direct supervision, including 51 large banks assessed by the EBA and 45 medium-sized banks such as the Bank of Cyprus. The banks tested projected combined losses of €628 billion from deteriorating credit, market, and operational risk, which was an increase from the €548 billion recorded in the 2023 stress test. Despite these losses, the ECB said

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative presents recent findings from the European Systemic Risk Board (ESRB) as of October 3, 2025. The earliest known publication date of similar content is October 2, 2025, in a Reuters article discussing the ESRB's warning on stablecoins. (reuters.com) The report's focus on EU banks' resilience and associated risks appears to be original, with no evidence of recycled content. The narrative includes updated data and references to recent stress tests, justifying a high freshness score.

Quotes check

Score: 9

Notes: The narrative does not contain direct quotes. The information aligns with the ESRB's recent publications and the Reuters article from October 2, 2025. (reuters.com) The absence of direct quotes suggests the content is original or paraphrased from the ESRB's findings.

Source reliability

Score: 7

Notes: The narrative originates from the Cyprus Mail, a reputable news outlet. However, the ESRB's findings are not directly accessible through the provided search results, which raises some uncertainty about the direct source of the information. The reliance on a single outlet for reporting the ESRB's findings introduces a degree of uncertainty.

Plausability check

Score: 8

Notes: The claims regarding the ESRB's assessment of EU banks' resilience and associated risks are plausible and consistent with recent financial stability concerns. The narrative's focus on geopolitical uncertainties and their impact on financial stability aligns with ongoing discussions in the financial sector. The absence of direct quotes and reliance on a single source for reporting the ESRB's findings introduces a degree of uncertainty.

Overall assessment

Veredict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents recent findings from the ESRB regarding EU banks' resilience amid geopolitical uncertainties. While the content appears original and includes updated data, the reliance on a single source (Cyprus Mail) for reporting the ESRB's findings introduces some uncertainty about the direct source of the information. The absence of direct quotes and the lack of direct access to the ESRB's publications further contribute to this uncertainty. Therefore, the overall assessment is 'OPEN' with a 'MEDIUM' confidence level.

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Geopolitical TensionsFinancial StabilityRegulatory VigilanceCryptocurrenciesArtificial Intelligence

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Cryptocurrencies
Artificial Intelligence

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Nigeria’s pension sector faces growth hurdles as PenCon raises capital thresholds

Regulation1718 words8 min read28 minutes ago

Renaissance Capital warns that recent capital requirement increases for Nigeria’s Pension Fund Administrators and Custodians could impede industry growth, prompting calls for a more risk-focused approach amid ongoing consolidation efforts.Renaissance Capital Africa has raised concerns over the recent directive from the National Pension Commission (PenCon) to increase the minimum capital requirements for Nigeria’s Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs). While the policy aims to bolster the sector’s financial stability, operational resilience, and long-term sustainability, the firm warns that it might unintentionally hinder growth among PFAs by setting capital thresholds that do not fully align with their actual risk profiles. On 26 September 2025, PenCon revised its capital framework, mandating that PFAs managing assets below N500 billion maintain a minimum capital of N20 billion. For PFAs with assets exceeding N500 billion, the requirement is now N20 billion plus 1% of the amount above N500 billion. PFCs are now required to hold N25 billion plus 0.1% of Assets Under Custody (AUC). These updated rules, which are based on Sections 60(1)(b), 62(b), and 115(1) of the Pension Reform Act (PRA) 2014, are intended to bring Nigeria’s pension regulatory standards more in line with international best practices. They take effect immediately for new licenses, while existing operators are given until 31 December 2026 to comply. Renaissance Capital acknowledges the rationale behind this move, especially given that the AUM of the pension industry has grown significantly—advancing at a compound annual rate of approximately 16% since the 2021 recapitalization that raised PFAs' capital from N2 billion to N5 billion. Much of this expansion stems from strong investment performance and the devaluation of the Naira in 2023 and 2024, which increased asset valuations. Additionally, recent regulatory changes allowing PFAs to diversify into higher-risk investments—such as securities lending, repos, infrastructure, and private equity—have amplified operational and counterparty risks. Consequently, higher capital buffers are seen as necessary safeguards to mitigate these risks. However, Renaissance Capital cautions that the structure of the new requirements—particularly the tiered approach based on asset size—may not accurately reflect the operational risk profiles of large PFAs. Since these firms typically earn a flat 1% fee on AUM and do not directly bear market risk, forcing them to allocate profits into capital reserves could be inefficient. Moreover, the exclusion of statutory reserves from qualifying capital might encourage profit retention rather than capitalization, leading to potential over-capitalization. The firm advocates for a fixed capital requirement model that emphasizes operational risk exposure rather than size-based tiers. They warn that the current tiering incentivizes smaller or larger PFAs alike to limit growth and could distort competitive dynamics within the industry. The anticipated outcome of these new thresholds includes considerable industry consolidation. Renaissance estimates that PFAs will need approximately N275.7 billion additional capital to meet the new standards, with larger firms primarily leveraging group resources to comply. Smaller PFAs are likely to face difficulties, potentially accelerating mergers and acquisitions—a pattern already observed in the 2021 recapitalization cycle, which saw firms like Tangerine Pensions expand through acquisitions and GTBank entering the market by taking over Investment One Pension Managers. Currently, the number of PFAs has decreased from 22 to around 17, following Leadway Pensure's acquisition of PAL Pensions. Going forward, further consolidation could solidify a “Big Five” dominance by firms such as Stanbic IBTC, Access ARM, Leadway-PAL, Premium, and NPF Pensions. For PFCs, the shortfall resulting from the new capital requirements is projected at approximately N28.9 billion. Major players such as First Pension Custodian, Zenith Pensions Custodian, and UBA Pensions Custodian will need to raise N6.4 billion, N8.2 billion, and N14.3 billion respectively. Their affiliations with large banking groups are expected to facilitate these capital increases. Nonetheless, these reforms may influence dividend payout strategies, especially among entities within tier-one banking groups, prompting a focus on profit retention to meet the new capital standards. While group-level dividends might remain relatively unaffected, internal capital allocations are likely to be adjusted in the short term. In sum, PenCon’s push for increased capital adequacy is a vital step toward safeguarding contributor assets and enhancing industry resilience. Nonetheless, striking the right balance between sufficient capital buffers and fostering sector growth remains delicate. It is crucial for regulators and industry stakeholders to monitor how these reforms evolve, ensuring that the restructuring leads to a stable, competitive, and innovative pension industry without discouraging expansion or market vitality. Source: Noah Wire ServicesVerification / Sources https://nairametrics.com/2025/10/03/pencom-n20-billion-recapitalisation-may-discourage-pfas-pfcs-growth-renaissance-capital/ - Please view link - unable to able to access data https://nairametrics.com/2025/09/27/pencom-raises-capital-requirement-for-pfas-to-n20-billion/ - On 27 September 2025, the National Pension Commission (PenCom) announced a significant revision to the capital requirements for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs). The minimum capital for PFAs was increased tenfold, from N2 billion to N20 billion, while PFCs were required to raise their capital from N2 billion to N25 billion. This move aims to strengthen financial stability and operational resilience within Nigeria's pension industry. The new capital requirements are aligned with global best practices and are set to take effect immediately for new licenses, with existing operators given until 31 December 2026 to comply. PenCom emphasized that the review was conducted in line with Sections 60(1)(b), 62(b), and 115(1) of the Pension Reform Act (PRA) 2014, aiming to support the long-term viability of pension operators and ensure the sustainability of the Contributory Pension Scheme (CPS). https://www.thecable.ng/pencom-raises-capital-base-for-pfas-to-n20bn-pfcs-to-n25bn/ - On 27 September 2025, the National Pension Commission (PenCom) announced an increase in the minimum capital requirements for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs). PFAs are now required to maintain a capital base of N20 billion, while PFCs must hold N25 billion. This decision aligns the capital requirements with the assets under management (AUM) and assets under custody (AUC) of the PFAs and PFCs, respectively. The new capital requirements are set to take effect immediately for new licenses, with existing operators given until 31 December 2026 to comply. PenCom stated that the review was conducted in line with global best practices to ensure that capital is proportionate to the risk exposure of the Pension Fund Operators. https://guardian.ng/business-services/pencom-releases-new-capital-requirement-for-pfas-pfc/ - The National Pension Commission (PenCom) has introduced a new capital regime for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to strengthen financial stability and safeguard the long-term sustainability of Nigeria’s pension industry. Under the revised structure, PFAs managing assets above N500 billion must hold a minimum capital of N20 billion, plus one per cent of funds exceeding that threshold. Those with assets below N500 billion are required to maintain a flat N20 billion. The new capital requirements are set to take effect immediately for new licenses, with existing operators given until 31 December 2026 to comply. PenCom emphasized that the measure was necessary to protect operators against macroeconomic shocks, enhance service delivery, and safeguard contributors’ savings. https://independent.ng/pencom-sets-new-capital-base-for-pfas-pfcs-at-n20bn-exercise-ends-dec-2026/ - The National Pension Commission (PenCom) has mandated Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to increase their capital base to N20 billion and N25 billion, respectively, by December 2026. This directive aims to strengthen the financial stability and operational resilience of Nigeria's pension industry. The new capital requirements are set to take effect immediately for new licenses, with existing operators given until 31 December 2026 to comply. PenCom emphasized that the review was conducted in line with global best practices to ensure that capital is proportionate to the risk exposure of the Pension Fund Operators. https://www.ecofinagency.com/news-finances/2909-49102-nigeria-orders-pension-fund-operators-to-recapitalize-by-december-2026 - Nigeria’s National Pension Commission (PenCom) announced on 26 September 2025 that it will require pension fund administrators and custodians to recapitalize by the end of 2026. The regulator increased the minimum capital for PFAs to N20 billion from N5 billion and for PFCs to N25 billion from N2 billion. The recapitalization must be completed by 31 December 2026, with biennial compliance checks and a 90-day deadline to cover any shortfall. PenCom stated that the reform is designed to enhance financial stability, ensure the long-term viability of operators, and align the system with international standards where capital requirements reflect risk exposure. https://independent.ng/pfa-with-over-n500bn-aum-to-raise-capital-to-n25bn/ - The National Pension Commission (PenCom) has mandated Pension Fund Administrators (PFAs) with over N500 billion in Assets under Management (AUM) to increase their capital base to N25 billion from the current N5 billion. This directive is part of PenCom's efforts to strengthen the financial stability and operational resilience of Nigeria's pension industry. The new capital requirements are set to take effect immediately for new licenses, with existing operators given until 31 December 2026 to comply. PenCom emphasized that the review was conducted in line with global best practices to ensure that capital is proportionate to the risk exposure of the Pension Fund Operators. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 10 Notes: ✅ The narrative is current, published on 3 October 2025, and addresses recent developments in Nigeria's pension industry, including PenCom's directive from 26 September 2025. No evidence of recycled or outdated content was found. 🕰️ Quotes check Score: 10 Notes: ✅ No direct quotes were identified in the provided text, suggesting original or exclusive content. 🕰️ Source reliability Score: 8 Notes: ⚠️ The narrative originates from Nairametrics, a Nigerian financial news outlet. While it is a known source, its reputation and editorial standards are not as established as those of global media organisations. This warrants cautious consideration. ⚠️ Plausability check Score: 9 Notes: ✅ The claims align with recent regulatory changes by PenCom, as reported by other reputable sources. The analysis by Renaissance Capital appears consistent with the context of Nigeria's pension industry reforms. However, the potential impact on PFAs and PFCs' growth is a matter of professional opinion and may vary. ⚠️ Overall assessment Veredict (FAIL, OPEN, PASS): OPEN Confidence (LOW, MEDIUM, HIGH): MEDIUM Summary: ⚠️ The narrative is current and addresses recent developments in Nigeria's pension industry. However, it originates from Nairametrics, a source with a less established reputation compared to global media organisations, which introduces some uncertainty. Additionally, the analysis by Renaissance Capital is an opinion that may vary, and the potential impact on PFAs and PFCs' growth is not definitively established. ⚠️

ECB secures offline payments and AI fraud detection for digital euro revolution

Payments1381 words7 min read28 minutes ago

The ECB advances its digital euro project by awarding a major contract for offline payment systems and developing AI-driven fraud detection, aiming to enhance privacy, resilience, and security in digital transactions.The European Central Bank (ECB) has wrapped up its framework agreements covering five key parts of its digital euro project—an important move forward, I’d say. One thing that stands out is the contract they awarded for the offline payment system of the digital euro. This went to a consortium led by Giesecke+Devrient (G+D) and included partners like Nexi and Capgemini. Now, this offline feature is seen by the ECB as pretty important because it aims to mimic the privacy and resilience features you'd expect from cash. Basically, it’s about enabling transactions without needing an internet connection or involving third parties like banks or payment providers, which is pretty revolutionary. The offline payment option enables transactions to be settled directly between devices—whether smartphones, cards, or other compatible hardware—without relying on an active internet connection or even power. According to the ECB, this method does a couple of things: it boosts privacy by preventing third parties from recording transaction details, and it also makes the system more resilient—so, even if connectivity drops, payments can still go through. It’s designed to make sure the digital euro is accessible across the entire euro area, working alongside physical cash but offering more digital flexibility. So, the framework they’ve set up involves designing, developing, and partly managing the offline system, and then integrating it into the bigger digital euro setup via the Digital Euro Service Platform (DESP). G+D brings decades of expertise in security tech and currency systems, Nexi is known for innovative payment solutions and point-of-sale tech, and Capgemini is a major player in tech consulting and digital transformation. Dr. Wolfram Seidemann, CEO of G+D Currency Technology, emphasized how they’re committed to delivering a secure and innovative solution that keeps cash-like privacy and trust. Renato Martini from Nexi also pointed out the importance of building resilient payment systems that work even when offline—something that quite a few people probably find reassuring. This all ties into the ECB’s larger plan to boost the eurozone’s financial independence while introducing a digital payment option that’s modern, inclusive, and trustworthy. It’s part of a broader trend among central banks around the world to develop Central Bank Digital Currencies (CBDCs) that preserve the core features of cash, but in a digital format—pretty fascinating, isn’t it? And it’s not just the offline payments that the ECB is working on. They’re also making strides in other areas of their digital euro infrastructure. For example, they’ve teamed up with Feedzai, a Portuguese AI startup, along with PwC, to develop a sophisticated AI system designed to detect fraud risks. This system will analyze behavioral patterns to spot and assess potential fraud in digital euro transactions—helping payment service providers make better decisions about approval. The contract for this fraud detection tech is valued at up to €237.3 million over four years, which shows just how seriously the ECB takes security and fraud prevention in this new digital currency setup. All in all, these contracts paint a picture of a layered, robust approach by the ECB. While the offline payment system ensures privacy and usability even under less-than-ideal conditions, the AI-based fraud detection adds a crucial security layer for an increasingly digital financial world. The whole strategy seems to be about building trust and acceptance, making sure that once the digital euro is rolled out, it’s both safe and user-friendly. Honestly, it’s pretty impressive, right? I find it surprising that they’re covering all these bases so thoroughly, but that’s likely the key to success here. Source: Noah Wire ServicesVerification / Sources https://fintechnews.ch/payments/ecb-digital-euro-offline-payments/78524/ - Please view link - unable to able to access data https://www.capgemini.com/news/press-releases/ecb-concludes-a-framework-agreement-with-gieseckedevrient-and-its-partners-nexi-and-capgemini-to-deliver-offline-solution-for-the-digital-euro/ - Capgemini, in partnership with Giesecke+Devrient (G+D) and Nexi, has been selected by the European Central Bank (ECB) to develop an offline payment solution for the digital euro. This solution aims to enable transactions without internet connectivity, ensuring privacy and resilience akin to cash. The collaboration combines G+D's security technology expertise, Nexi's payment technology innovation, and Capgemini's leadership in technology consulting and digital transformation. (capgemini.com) https://www.ecb.europa.eu/press/intro/news/html/ecb.mipnews251002.en.html - The European Central Bank (ECB) has selected providers for five digital euro components and related services. Giesecke+Devrient, in partnership with Nexi and Capgemini, has been chosen to develop the offline solution. This initiative is part of the ECB's efforts to advance the digital euro project, aiming to enhance the euro zone's financial autonomy and provide citizens with a universally accessible means of payment. (ecb.europa.eu) https://www.reuters.com/business/finance/ecb-picks-ai-startup-prevent-digital-euro-frauds-2025-10-02/ - The European Central Bank (ECB) has selected Portuguese AI startup Feedzai, in partnership with PwC, to develop an AI system for assessing fraud risk in digital euro transactions. This system will analyse deviations from users' typical behaviour to help payment service providers decide whether to approve transactions. The contract is valued at up to €237.3 million over four years. (reuters.com) https://www.pressebox.de/inaktiv/giesecke-devrient-gmbh/ezb-schliet-rahmenvereinbarung-mit-giesecke-devrient-sowie-den-partnern-nexi-und-capgemini-zur-bereitstellung-einer-offline-lsung-fr-den-digitalen-euro/boxid/1268153 - Giesecke+Devrient (G+D), in partnership with Nexi and Capgemini, has been awarded a framework agreement by the European Central Bank (ECB) to develop an offline solution for the digital euro. This solution aims to enable transactions without internet connectivity, ensuring privacy and resilience similar to cash. The collaboration leverages G+D's security technology expertise, Nexi's payment technology innovation, and Capgemini's leadership in technology consulting and digital transformation. (pressebox.de) https://finanza.repubblica.it/News/2025/10/02/bce_accordo_con_giesecke%2Bdevrient_nexi_e_capgemini_per_soluzione_offline_per_euro_digitale-255/ - The European Central Bank (ECB) has concluded framework agreements for five digital euro components. Giesecke+Devrient (G+D), in partnership with Nexi and Capgemini, has been selected to provide an offline payment solution. This solution aims to enable offline payments without third-party involvement, ensuring privacy and resilience akin to cash. (finanza.repubblica.it) https://www.mexc.com/en-TH/news/ecb-taps-ai-startup-to-combat-fraud-in-digital-euro-rollout/117199 - The European Central Bank (ECB) has selected Portuguese AI startup Feedzai, in partnership with PwC, to develop an AI system for assessing fraud risk in digital euro transactions. This system will analyse deviations from users' typical behaviour to help payment service providers decide whether to approve transactions. The contract is valued at up to €237.3 million over four years. (mexc.com) Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 10 Notes: The narrative is based on a press release from Capgemini dated October 2, 2025, announcing the conclusion of a framework agreement with the European Central Bank (ECB) for the development of an offline solution for the digital euro. (capgemini.com) This indicates high freshness, as the information is current and directly from the involved parties. Quotes check Score: 10 Notes: The narrative includes direct quotes from Dr. Wolfram Seidemann, CEO of Giesecke+Devrient, and Renato Martini, Digital Banking Solutions Director of Nexi. These quotes are present in the Capgemini press release dated October 2, 2025. (capgemini.com) No earlier usage of these quotes was found, suggesting they are original to this release. Source reliability Score: 10 Notes: The narrative originates from Capgemini, a reputable global business and technology transformation partner. The press release is accessible on Capgemini's official website, indicating a reliable source. (capgemini.com) Plausability check Score: 10 Notes: The claims about the ECB's selection of Giesecke+Devrient, Nexi, and Capgemini for the digital euro offline solution are corroborated by multiple reputable sources, including the ECB's official announcement and Reuters. (ecb.europa.eu) The narrative's language and tone are consistent with official communications, and the details align with known developments in the digital euro project. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is based on a recent press release from Capgemini, dated October 2, 2025, announcing the conclusion of a framework agreement with the ECB for the development of an offline solution for the digital euro. The quotes from Dr. Wolfram Seidemann and Renato Martini are original to this release. The source is reliable, and the claims are corroborated by multiple reputable outlets. The language and tone are consistent with official communications, and the details align with known developments in the digital euro project. Therefore, the narrative passes the fact-check with high confidence.

KvardinChain secures top-tier exchange listings, boosting its move into mainstream crypto markets

Digital1309 words6 min read28 minutes ago

KvardinChain progresses from concept to crucial market player by securing listings on Binance, Coinbase, KuCoin and Kraken, positioning its KRN token for widespread utility and institutional adoption.KvardinChain is really set to make waves in the digital asset space now, as it finally moves from just an idea into actual implementation with confirmed listings on some of the biggest crypto exchanges out there. The project, which aims to facilitate decentralized global commerce through its Kvardin Pay and Kvardin Card solutions, has recently secured key agreements to list its KRN token on top-tier platforms like Binance, KuCoin, Coinbase, and Kraken. This isn’t just some basic application submission—it's a solid, final framework that pretty clearly positions KRN as a high-liquidity asset, ready for widespread use by both institutions and everyday traders alike. Having KRN listed on Binance and KuCoin opens up huge opportunities, especially in high-frequency trading markets across Asia and Europe, which should boost retail trading volume quite a bit. At the same time, being on Coinbase and Kraken, both of which are known for strict adherence to regulations, adds a layer of credibility and trust that could entice more institutional investors from North America. This multi-exchange approach means KvardinChain can tap into billions of dollars in liquidity channels, which is essential for onboarding millions of merchants and service providers around the globe. Now, the real utility of KRN gets a big boost from these exchange partnerships. The Kvardin Card and Pay services are designed for fast, real-time transactions, which are attractive to both consumers and merchants because they’re low-cost and settle almost immediately through the Kvardin Currency Exchange Protocol (KCEP). These trading partnerships—well, at least to me—seem to form the backbone of a self-sustaining ecosystem. Merchants and users alike can reliably convert KRN into fiat or other assets on deep, stable markets, making it practical for everyday use—something that’s often missing in the crypto space. There’s quite a buzz in the market right now, and early investors should be aware that the window to buy KRN at pre-listing prices is closing fast. Typically, digital tokens see sharp price increases once they go live on Tier-1 platforms. The upcoming announcements about public launches on Binance and Coinbase are expected to spark a marked influx of both institutional and retail capital—definitely a big deal. And, beyond the immediate market mechanics, there’s a lot of optimism about KvardinChain’s growth potential—probably tied to future brand integrations and even applications in the metaverse. Some market analysts are quite bullish on KRN, expecting it to skyrocket. In fact, some models even project a value of around $0.26 by the end of 2025, which is a significant jump from its initial offering price of just $0.012. The token’s foundation as a decentralized payment method, combined with its AI-blockchain architecture, really underpins these optimistic forecasts. It’s also worth noting that broader developments in the ecosystem highlight how relevant these exchange partnerships are. For example, KuCoin’s collaboration with Holdstation aims to develop blockchain tech and promote education in emerging markets like Vietnam—showing that adoption is growing worldwide. Simultaneously, Kraken and Coinbase keep pushing forward with new products and financial partnerships; Kraken’s launch of its multi-blockchain self-custodial wallet and Coinbase’s partnership with JPMorgan Chase for direct crypto buying are clear signs of traditional finance and digital assets converging more than ever. Additionally, institutional collaborations like Windtree Therapeutics signing a deal with Kraken to manage their BNB treasury emphasize how regulated, mainstream exchanges are crucial in bridging traditional finances with crypto assets. These kinds of trends really contextualize why KvardinChain is so focused on getting listed on these major platforms—it's all about cementing its place in this rapidly evolving institutional crypto landscape. So, in summary, the fact that KvardinChain is now officially listed on Binance, KuCoin, Coinbase, and Kraken isn’t just a tick-box achievement; it’s a big validation of the project’s focus on utility and liquidity. These listings pave the way for faster adoption and likely a boost in the token’s price. As the industry continues to blend more with regular banking and investment channels, KRN’s upcoming launch on these top-tier exchanges positions it quite well—potentially leading the way in decentralized commerce and payments. References: - Paragraph 1 – Source 1 - Paragraph 2 – Source 1 - Paragraph 3 – Source 1 - Paragraph 4 – Source 1, Source 2 - Paragraph 5 – Source 1, Source 3, Source 4, Source 7 - Paragraph 6 – Source 1, Source 5, Source 6 - Paragraph 7 – Source 1 Source: Noah Wire ServicesVerification / Sources https://techbullion.com/kvardinchain-locks-down-binance-coinbase-access-krn-price-surge-imminent/ - Please view link - unable to able to access data https://techbullion.com/kvardin-token-price-prediction-how-recent-partnerships-will-boost-krn/ - This article discusses the potential impact of recent partnerships on the Kvardin Token (KRN) price. It highlights the project's primary use case as a decentralized payment method and speculates on future integrations with major brands and the metaverse. The author predicts that if these developments materialize, KRN could reach $0.26 by the end of 2025, representing a 733% increase from its initial coin offering price of $0.012. The piece also mentions the Kvardin Token's initial coin offering available at Kvardin.com. https://www.binance.com/en/square/post/17458885629906 - Binance Square reports on the strategic partnership between KuCoin and Holdstation, aiming to transform Vietnam's blockchain ecosystem. The collaboration focuses on developing blockchain-enabled applications, enhancing infrastructure, and implementing startup accelerator programs in Vietnam. Additionally, the partnership plans to roll out comprehensive blockchain education initiatives targeting local communities, universities, and broader business collaborations on a global scale. https://www.kucoin.com/news/flash/bunq-partners-with-kraken-to-enable-crypto-trading-in-banking-app - KuCoin News reports on the partnership between Europe's second-largest digital bank, Bunq, and cryptocurrency exchange Kraken. This collaboration integrates crypto trading within Bunq's banking app, marking a significant advancement in the integration of cryptocurrency into traditional financial systems. The move aims to provide Bunq's users with seamless access to crypto trading, enhancing the bank's offerings and aligning with the growing trend of digital finance. https://www.binance.com/en/square/post/6900114925066 - Binance Square shares CoinDesk's report on Kraken's release of its own crypto wallet, entering competition with Coinbase and MetaMask. The new self-custodial 'Kraken Wallet' supports multiple blockchains, including Bitcoin, Ethereum, Solana, and others. The wallet is open-sourced, allowing developers to access and contribute to the code, and emphasizes user privacy by collecting minimal data to function. https://www.nasdaq.com/articles/windtree-therapeutics-announces-strategic-partnership-with-kraken-for-bnb-crypto-treasury-strategy - Nasdaq reports on Windtree Therapeutics' strategic partnership with Kraken to enhance its BNB Crypto Treasury Strategy. The collaboration includes custody, trading, and over-the-counter services, contingent upon shareholder approval of an existing securities purchase agreement. Windtree aims to leverage Kraken’s expertise and secure infrastructure to provide investors with access to the Binance ecosystem, where the BNB token holds significant market value. https://www.kucoin.com/news/flash/coinbase-partners-with-jpmorgan-chase-for-direct-crypto-purchases - KuCoin News reports on Coinbase's partnership with JPMorgan Chase, allowing Chase credit card holders to make direct cryptocurrency purchases on the Coinbase platform. This collaboration marks a significant step in integrating traditional finance with decentralized finance, enhancing accessibility and convenience for users looking to invest in cryptocurrencies using their credit cards. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 3 Notes: The narrative appears to be original, with no substantial matches found in recent publications. However, the KRN price prediction of $0.26 by the end of 2025 is a common estimate for various cryptocurrencies, lacking specificity to KvardinChain. The article includes updated data but recycles older material, which warrants a higher freshness score but should be flagged. The content is based on a press release, which typically indicates high freshness, but the lack of coverage elsewhere and the generic nature of the price prediction suggest potential issues. Quotes check Score: Notes: Source reliability Score: Notes: Plausability check Score: Notes: