The European Supervisory Authorities (ESAs) released their spring 2026 update on risks within the EU financial system. The update emphasizes geopolitical tensions and developments in private finance as key areas of concern. Ongoing global conflicts, like those in the Middle East, pose risks through higher energy prices and potential economic impacts. The ESAs are concerned about market volatility and the impact of higher interest rates on funding conditions. Cyberattacks and infrastructure disruptions also represent significant threats to financial stability. Emerging risks in private finance are highlighted due to limited data, low transparency, and complex interconnections. Developments in US private credit funds reveal potential vulnerabilities. Despite these challenges, the EU financial sector has shown resilience, particularly in insurance, IORPs, and the banking sector. The ESAs call for continued vigilance from supervisors and market participants. This vigilance involves proactive risk assessments and prudent management of exposures. Monitoring indirect effects from energy prices and vulnerable sectors is also essential. Financial institutions are urged to closely manage risks associated with private markets, especially in light of upcoming regulatory changes.