The European Central Bank (ECB) published its semi-annual Financial Stability Review on 26 November 2025. It provides an overview of potential risks to financial stability in the euro area.

The key conclusions are:

• Financial stability vulnerabilities remain elevated, given uncertainty over geoeconomic trends and tariff impacts.
• High asset valuations carry the risk of sharp adjustments that could challenge and be amplified by non-banks.
• A challenging fiscal outlook in some advanced economies could test investor confidence and lead to stress in sovereign bond markets.
• Credit risk exposures to tariff-sensitive firms and growing funding risk exposures to non-banks could pose challenges for banks during periods of economic or market stress.