Tesco
Financial Stability Review May 2014
Report

Financial Stability Review May 2014

European Central Bank
ECB, 2014
Get the Report

Read or listen offline

audio autogenerado
  • 0.5×
  • 0.75×
  • 1×
  • 1.25×
  • 1.5×
  • 1.75×
1×
audio autogenerado

Editorial Rating

7

Qualities

  • Analytical
  • Overview

Recommendation

In its semiannual report on the euro zone’s economy and financial system, the European Central Bank sounds a note of cautious optimism, tempered with plenty of warnings about what could still go wrong with the area’s feeble recovery. Many of the troubled euro-zone nations have made good progress in addressing their fiscal problems, and the area’s banks have raised capital and shed assets, though – as the latest stress tests revealed – several financial institutions still need to do more. But the continuing fragility of the global recovery, as well as potential economic and geopolitical upsets in emerging markets, offer numerous challenges to the euro area’s prospects. Though the ECB’s report is formal in tone, getAbstract recommends this authoritative assessment of the euro-zone economic powerhouse to executives, economists and investors.

Take-Aways

  • Both “legacy issues” and “emerging issues” due to external conditions like the “global search for yield” threaten the euro zone’s economic and financial progress.
  • The euro zone faces three risks: the reversal of the global need for higher returns, the “re-emergence of sovereign debt sustainability concerns” and “continuing weak banks.”
  • Euro-zone economies will grow for the first time since early 2011, but the area will likely lag behind other regions in growth and will need “further rebalancing.”

About the Author

The European Central Bank is the central bank for the euro and oversees the monetary policies of the euro zone.

Comment on this summary or Comenzar discusión