On 16 November 2022, the European Central Bank published its half-yearly Financial Stability Review. It gives an overview of potential risks to financial stability in the euro area. The Review’s key conclusions are:

• The risks to financial stability have increased further, primarily as a result of upside risks to inflation and downside risks to growth.
• Significantly higher volatility and losses have been observed on the financial markets since the outbreak of the war in Ukraine. There has been a reversal of the search for yield (i.e. high-risk investments in a low-interest environment).
• The ECB believes that maintaining macroprudential buffers is contributing significantly to the stability of the financial system.