ECB: Euro area financial stability environment remains challenging
|The European Central Bank (ECB) is out with its Euro area Financial Stability Review, with the key highlights noted below.
Top stability risks include weak bank profitability, increased risk-taking among shadow banks.
Search for yields across shadow banking may exacerbate the build-up of vulnerabilities.
Residential real estate overvaluation exceeds 7%; commercial real estate price growth cooling but valuations still stretched.
Public debt positions manageable currently, despite deteriorating macroeconomic environment.
The shared currency pays little heed to the ECB report, as EUR/USD tests the key 1.1050 support amid broad-based US dollar strength induced by risk-aversion, in response to the latest US-China political woes.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.