ECB Financial Stability Review shows risks increasing as economic and financial conditions worsen

- PRESS RELEASE

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ECBECB
URL: 
https://www.ecb.europa.eu//press/pr/date/2022/html/ecb.pr221116~af58c8e63b.en.htmlhttps://www.ecb.europa.eu//press/pr/date/2022/html/ecb.pr221116~af58c8e63b.en.html
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Saturday, November 26, 2022
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Attention, Reproduction, Household, Food, Review, Corporation, Risk, Face, Communication, European Central Bank, Central bank, ECB, Frankfurt, Income, Renewable energy, Security (finance), Bank, Management
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GERMANY
Summary
Key Points: 
  • - PRESS RELEASE
    ECB Financial Stability Review shows risks increasing as economic and financial conditions worsen
    16 November 2022
    - Households and firms face multiple challenges, including weakening economic outlook, higher inflation and tighter financial conditions
    - Diminished market liquidity raises risk of disorderly asset price adjustments, which could test investment fund resilience
    - Governments should ensure support to vulnerable sectors is targeted and does not interfere with monetary policy normalisation
    Risks to financial stability in the euro area have increased amid soaring energy prices, elevated inflation and low economic growth, the November 2022 Financial Stability Review published today by the European Central Bank (ECB) shows.
  • At the same time, financial conditions have tightened as central banks act to rein in inflation.
  • People and firms are already feeling the impact of rising inflation and the slowdown in economic activity, said ECB Vice-President Luis de Guindos.
  • Our assessment is that risks to financial stability have increased, while a technical recession in the euro area has become more likely.
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