- Uneven economic impact of pandemic implies risks concentrated in specific sectors and countries
- Banks asset quality holding up, but profitability weak and potential for credit risk to worsen
- Disorderly corrections in financial market segments may affect non-banks that have large exposures to corporates with weak fundamentals
The uneven economic impact of the pandemic means that financial stability risks are concentrated in specific sectors and countries, often with higher pre-existing vulnerabilities, concludes the May 2021 Financial Stability Review (FSR) of the European Central Bank (ECB).
As the euro area emerges from the third wave of the pandemic, risks to financial stability remain elevated and have become more unevenly dist…
Read the full article at: https://www.miragenews.com/ecb-review-sees-elevated-financial-stability-562725/
