The financial system faces four risks!



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The financial system faces four risks! | News from the economy

The financial stability assessment report published by the European Central Bank in its yatırım report on financial stability describes four risks to the financial system :, sudden rise in risk premiums, increase in debt, low profitability of banks and outflows from Avrupa investment funds.

The European Central Bank (ECB) has published the report "Assessment of financial stability" on the euro area. The report says that the threats on the financial markets have increased since May and adds: "The financial stability environment of the euro area is more difficult since May.With high contributions and low risk premiums, the financial system has become more vulnerable and, on the positive side, the growth of the economy and the flexibility of the developed banking sector continue to foster financial stability in the euro area.

The ECB report pointed out that risks to global growth prospects have become more apparent since May due to the resurgence of trade protectionism and emerging market challenges.

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In its report, the ECB identified four risks to the financial system, namely a sudden rise in global risk premiums, rising debt, low profitability of banks and outflows of investment funds.

The bank sees a dangerous market reaction to political uncertainties, while the value of assets is relatively high at the moment and warned that in case of political uncertainty, these values ​​could fall quickly.

In its report, the ECB showed signs of falling real estate prices in the euro area and pointed out that risks in the mutual fund industry, especially outside the banking sector, had risen.

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