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ECB Says Risks to Financial Stability Have Eased as Threat of Recession Recedes

By Paul Hannon

 

The eurozone's financial system faces less acute threats to stability as it appears increasingly unlikely that the currency area's economy will slide into a deep recession, the European Central Bank said.

However, the central bank warned that geopolitical and policy uncertainty remains "elevated" and that the potential for economic or financial shocks remains "high."

"Geopolitical risks continue to cloud the outlook for financial stability," ECB Vice-President Luis de Guindos said Thursday.

"While financial stability conditions have improved in line with reduced recession risks and lower inflation, it remains crucial that we build further on the resilience of the financial system."

 

Write to Paul Hannon at paul.hannon@wsj.com

 

(END) Dow Jones Newswires

May 16, 2024 04:29 ET (08:29 GMT)

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