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Challenges For Banks In 2025: Balancing Innovation And Stability

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  • Ana-Maria BORES

    (Stefan cel Mare University of Suceava, 720229, Romania)

Abstract

The year 2025 represents a decisive moment for the European banking sector, caught between the pressure of digital innovation and the need to maintain financial stability. This article investigates how banks are managing the balance between innovation—driven by artificial intelligence, cryptoassets, tokenization, and instant payments—and stability, reinforced by new European regulations such as CRR3/CRD6, DORA, MiCA, AMLA, and the AI Act. The study shows that innovation is an essential driver of competitiveness and efficiency, but it also carries additional risks: cyber vulnerabilities, reputational exposure, and compliance pressures. At the same time, stability remains the foundation of the banking system, requiring adequate capitalization, robust governance, and advanced risk management practices. The central conclusion is that the relationship between innovation and stability is not one of opposition, but a structural necessity. Banks that succeed in integrating emerging technologies into a solid framework of prudence and compliance will be able to ensure both resilience and long-term profitability.

Suggested Citation

  • Ana-Maria BORES, 2025. "Challenges For Banks In 2025: Balancing Innovation And Stability," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 13(1), pages 146-153, February.
    • Handle: RePEc:scm:ejafbu:v:13:y:2025:i:1:p:146-153
    DOI: 10.4316/EJAFB.2025.13115
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