Eurozone banks show “early signs of stress”, ECB warns
High interest rate will test eurozone’s resilience while some non-banks are at risk, review says
Eurozone banks are facing “early signs of stress” including higher default rates and payment arrears, the European Central Bank (ECB) said today (November 22).
More broadly, the ECB’s financial stability review warned an adverse macroeconomic environment and geopolitical risks threaten financial markets’ stability. These risks could also be “amplified by vulnerabilities in some non-bank financial institutions”, it added.
The eurozone’s GDP has remained stagnant through 2023, and in the third
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