Financial stability vulnerabilities have eased but the outlook remains fragile, ECB finds

From ecb.europa.eu

Euro area financial stability conditions have improved as recession risks decline, but markets remain exposed to possible adverse macro-financial and geopolitical surprises Tight financial conditions are testing the resilience of vulnerable euro area households, firms and governments, while downturn in property market presses real estate firms Euro area banks have been a source of resilience, but low market valuations suggest challenges remain, notably related to asset quality, funding and revenues Financial stability in the euro area has benefited from an improving economic outlook, with inflation steadily declining ... (full story)