-
ECB: Financial stability vulnerabilities remain elevated given uncertainty over geoeconomic trends and tariffs impact
Stretched valuations in increasingly concentrated asset markets raise risk of sharp price adjustments Fiscal challenges in some advanced economies could test investor confidence Exposures to tariff-sensitive firms and stronger funding ties with non-banks could strain euro area banks during periods of economic or market stress Euro area banking sector is resilient, with strong profitability and ample capital and liquidity buffers Remaining uncertainties around trade agreements and the longer-term economic and financial effects of tariffs continue to shape the euro area financial stability landscape, according to the ... (full story)