European Central Bank (ECB) Financial Stability Review

Financial stability is understood to mean the ability of the financial system which allows financial institutions, markets and infrastructures to mitigate negative disturbances by allowing seamless and effective switching of financial resources between different financial market participants even in such situations. Otherwise, this could lead to a decline in economic activity.

As part of its mandate to ensure this financial stability, the ECB, like other central banks around the world, has regularly published the Financial Stability Review since December 2003. The aim is to raise awareness of the relevant issues, problems and factors not only for the financial industry but also for the general public. In this sense, it is not a question of identifying the current and most important risks and vulnerabilities, but also of discussing the unlikely in a long-term perspective.

The report comprises three focal points, possibly followed by current special topics. These three topics deal firstly with the robustness of the institutions, markets and infrastructures of the financial system, secondly with the main causes of possible risks and weaknesses and, last but not least, thirdly with the ability of the financial system to cope with crises that arise. This then leads to an assessment of whether and what measures need to be taken.