ECB links ‘fragile’ financial stability to weak macroeconomy


Stress in the eurozone financial sector has "fallen markedly", but vulnerabilities between sovereigns, banks and the macroeconomy persist, according to the ECB's latest financial stability review, published yesterday.

ECB vice-president Vítor Constâncio, announcing the review, said financial stability remains "fragile" in the eurozone, and linked much of the ongoing risk with member countries' weak growth.

The review identifies four "key risks" to financial stability in the eurozone: a decline i

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