War in Ukraine raising eurozone stability risks, says ECB
Non-bank sector vulnerable to higher interest rates, financial stability review finds
The Russian invasion of Ukraine is increasing financial stability risks in the eurozone, the European Central Bank (ECB) warned today (May 25).
The central bank’s latest financial stability review points out the conflict is contributing to higher commodity and energy prices. This is boosting inflation, creating a more uncertain economic outlook for the region. Rising interest rates could also pose a threat to many non-banks, whose bond portfolios face major losses.
The war has “increased
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