Netherlands Bank flags risk from ECB asset purchases

ECB actions could cause 'excessively risky' behaviour

netherlands-bank-2
The Netherlands Bank

The European Central Bank's (ECB) unconventional policies have buoyed market sentiment, but carry other risks, according to the Netherlands Bank's latest financial stability review, published yesterday.

Unconventional monetary policy by the ECB has encouraged economic recovery and reduced "unrest" on financial markets, the Netherlands Bank said. However it warned that similar periods of calm in the past had presaged the build-up of imbalances.

"The flip side of the low volatility and the

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