ECB fears ‘abrupt reversal’ of global search for yield

ECB in Frankfurt
European Central Bank

The potential for an "abrupt reversal" of the global search for yield is the main threat to financial stability in the eurozone over the next 18 months, according to the European Central Bank (ECB).

In its latest financial stability review, published today, the ECB also highlights weak bank profitability and, to a lesser extent, the sustainability of sovereign debt as key risks.

Underlying each of these risks is the "weak, fragile and uneven economic recovery" in the eurozone, which is at odds w

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