ECB Financial Stability Review: Outlook for financial stability is fragile

In its bi-annual assessment of the Euro area financial conditions, the European Central Bank (ECB) highlighted on Wednesday, “the outlook for financial stability is fragile.”

Additional takeaways

History suggests soft landing difficult, but not impossible.

A weak economy heightens stability risks from hikes.

It's crucial to reach the EU deal on fiscal rules.

Shadow banks have very low liquidity buffers.