Dutch regulator, the Autoriteit Financiële Markten (AFM), issued a press release on Tuesday, warning that the Iran war is putting further pressure on financial stability.
The AFM said the conflict is increasing market volatility and raising risks for both the Dutch and the global financial system. The warning is directed at the financial sector.
The release comes after the Financieel Stabiliteitscomité (FSC), which includes the AFM, De Nederlandsche Bank, and the Dutch Ministry of Finance, said in April that the outlook for Dutch financial stability was at “code oranje.”
The FSC cited escalation in the Middle East, rising energy prices, disruptions to global business activity, and the risk of sharp corrections in financial markets. It also flagged risks tied to high equity valuations, especially in technology, and growth in private credit.
AFM chair Laura van Geest had separately urged consumers and companies in April to build cash buffers amid geopolitical uncertainty.
Tuesday’s release continues the tougher tone of Dutch supervisory messaging on geopolitical risk since the spring.
