Sharply increased interest rates in combination with a weak economy could lead to higher loan defaults.
(Photo: dpa)
Frankfurt The European Central Bank (ECB) sees increased risks for the financial system in the euro zone in view of rising energy prices, high inflation and the weak economy. “In our view, risks to financial stability have increased, while a technical recession in the euro area has become more likely,” said ECB Vice President Luis de Guindos when presenting the central bank’s semi-annual Financial Stability Report on Wednesday.
People and businesses are already feeling the effects of rising inflation and a weakening economy.
In its report, the ECB identified the four biggest risks for the financial system. An overview:
1. High inflation and lower growth
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
Continue
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
Continue