ECB Financial Stability Review: Brexit not the main concern for EZ financial stability

Haresh Menghani FXStreet

The ECB's latest Financial Stability Review (FSR), released on Wednesday, revealed that Brexit was not the main concern for Euro-zone's financial stability.

Key points:

• The risk of a rapid re-pricing in global fixed income markets is significant
• Vulnerabilities remain for Euro-area banks from low rates, high npls and weak profitability
• The increasing size of the EZ investment fund sector has the potential to amplify financial stability risks
• Most measures of EZ systemic stress remained at low levels over the past 6 months

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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