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ECB: euro area home prices could see 'disorderly fall'; financial stability outlook remains fragile: FSR
ECB SAYS EURO AREA HOME PRICES COULD SEE 'DISORDERLY FALL': FSR
— *Walter Bloomberg (@DeItaone) May 31, 2023
ECB SAYS FINANCIAL STABILITY OUTLOOK REMAINS FRAGILE: FSR
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ECB: VULNERABILITIES OF FINANCIAL SYSTEM REVEALED BY RATE HIKES.
— Breaking Market News (@financialjuice) May 31, 2023
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Financial Stability Review, May 2023
This spring saw considerable financial turbulence, with the spotlight increasingly turning on systemic risk concerns following a series of bank failures outside the euro area. While the fallout experienced by euro area banks was limited, these events have served as a powerful reminder of the importance of ensuring that banking system fundamentals are sound, in an environment where financial conditions are being tightened to tackle elevated inflation around the world. Price stability remains as crucial as ever for durably preserving financial stability. Tighter financing conditions to forcefully address high inflation ... (full story)
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Financial stability outlook remains fragile, ECB review finds
According to the May 2023 Financial Stability Review published today by the European Central Bank (ECB), the outlook for euro area financial stability remains fragile, in the context of recent banking stress outside the currency union. While economic conditions have improved slightly, uncertain growth prospects paired with persistent inflation and tightening financing conditions continue to weigh on the balance sheets of firms, households and governments. Furthermore, an unexpected deterioration in economic conditions or financial tightening could lead to disorderly price adjustments in either or both financial and ... (full story)