Banks should ‘regularly’ assess clients’ exposure to tariffs – ECB
Rising trade tensions threaten financial stability, bank’s economists say
Rising global trade tensions could jeopardise financial stability and dampen economic growth in the eurozone, researchers from the European Central Bank have said.
In an article published today (May 20), ECB economists Pauline Avril, Paul Bochmann, Stephan Fahr, Aoife Horan, Cosimo Pancaro and Riccardo Pizzeghello say banks should actively monitor their borrowers’ exposure to tariffs. They should also diversify portfolios to minimise risk exposure, and conduct regular stress tests and scenario
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