Financial stability
Financial stability can be defined as a condition in which the financial system – which comprises financial intermediaries, markets and market infrastructures – is capable of withstanding shocks and the unravelling of financial imbalances.
This mitigates the prospect of disruptions in the financial intermediation process that are severe enough to adversely impact real economic activity.
Key vulnerabilities for the euro area financial system
Tightening of financial conditions
Significant increases in debt burdens
Weaker bank intermediation capacity and profitability
Liquidity concerns among vulnerable non-banks
Publications
Financial Stability Review
This biannual publication provides an overview of potential risks to financial stability in the euro area. It aims to promote awareness, in the financial industry and among the public, of euro area financial stability issues.
Macroprudential measures
The ECB is responsible for assessing macroprudential measures adopted by national authorities in the countries subject to ECB Banking Supervision. If necessary to address risks to financial stability, the ECB has the power to apply more stringent measures than those adopted nationally.