The European Central Bank published its semi-annual Financial Stability Review (FSR) on 17 November 2021. The Financial Stability Review provides an overview of potential risks to financial stability in the euro area. It aims at promoting awareness of euro area financial stability issues in the financial industry and the public. Main messages:

• Near-term pandemic-related risks to financial stability have declined as economy rebounds
• Growing vulnerabilities in housing markets and stretched financial asset valuations
• Potential challenges to recovery and inflation outlook from strains in global supply chains and rising energy prices