🧵The financial stability outlook remains fragile, with tighter financing conditions testing the resilience of people, firms, property markets and governments.
Read more about how the financial system is faring in our Financial Stability Review https://www.ecb.europa.eu/pub/financial-stability/fsr/html/index.en.html
1/5
Banking sector stress in the United States and Switzerland has greatly affected financial markets.
Tensions are likely to continue, with heightened bond market volatility on both sides of the Atlantic
2/5
Euro area banks have remained resilient in the face of recent banking sector stress in the United States and Switzerland, thanks to their robust capital and liquidity positions
3/5
Firms in the euro area have benefited from a strong post-pandemic recovery, lower energy prices and high profits.
Yet, the outlook for firms is still uncertain, especially for those with higher debt levels, lower earnings and smaller liquidity buffers
4/5
Housing markets in most euro area countries have started to cool.
Prices could fall more as banks tighten their credit standards for loans
5/5
