Financial Stability Review – May 2016

Conclusions of the Financial Stability Review:

+ Europe’s financial system showed resilience in face of rising vulnerabilities stemming from emerging market economies and financial market turbulence over the past six months;

+ Economic and financial vulnerabilities persist in the form of high legacy debt, both public and private, and a weak economic recovery;

+ Euro area banking sector repair continues amid challenges to profitability and, in some countries, high stocks of non-performing loans.

• Primary Source

ECB: Press Release, 24.05.16: Euro area systemic stress contained despite bouts of global financial market turbulence https://www.ecb.europa.eu/press/pr/date/2016/html/pr160524.en.html

EUObserver, 25.05.16: ECB warns that populist uprise is bad for business https://euobserver.com/economic/133540

The Wall Street Journal, 24.05.16: ECB Warns Against Rise of Populism http://www.wsj.com/articles/ecb-warns-against-rise-of-populism-1464091203

Reuters, 24.05.16: Risks to euro zone financial stability have increased, ECB warns http://uk.reuters.com/article/uk-ecb-stability-risks-idUKKCN0YF1IJ

ESO: Background information: Financial Stability Review, 2004- http://www.europeansources.info/record/website-financial-stability-review-2004/

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