ECB's Financial Stability Review, December 2006

The European Central Bank published its December 2006 Financial Stability Review on 11 December. In the report the ECB said the euro area financial system has proven resilient to adverse disturbances.

"Although there was a bout of volatility across a broad range of financial markets during May and June 2006, markets comfortably absorbed disturbances and no major financial institution was significantly impacted," the report said.

"Earlier concerns that an idiosyncratic collapse of a large hedge

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