The Bundesbank published its annual Financial Stability Review on 23 November 2023. In the review the Bundesbank explains vulnerabilities in the German financial system and highlights risks to its stability.

The European Central Bank (ECB) published its semi-annual Financial Stability Review on 22 November 2023. This provides an overview of potential risks to financial stability in the euro area.

The ESRB has released an issues note with option to enhance the stability of investment funds, especially those with significant exposures to corporate debt and real estate. It presents instruments like Liquidity Management tools to further reduce systemic risks.

According to the ECB’s May 2023 Financial Stability Review, the risks to financial stability have remained elevated since November 2022. Although euro area growth expectations for 2023 have been revised upwards, risks to inflation and other risks are still tilted to the upside. Targeted macroprudential measures are contributing strongly to the stability of the financial system.

The European Systemic Risk Board (ESRB) published a recommendation on vulnerabilities in the European commercial real estate sector on 25 January 2023 (ESRB/2022/09). The recommendation is addressed to microprudential and macroprudential supervisory authorities and to the European Commission.

The Bundesbank published its annual Financial Stability Review on 24 November 2022. In the review the Bundesbank explains vulnerabilities in the German financial system and highlights risks to its stability.

According to the ECB’s November 2022 Financial Stability Review, the risks to financial stability have risen further since May 2022. The probability of recession has increased substantially. Macroprudential buffers are contributing to the financial system’s stability.

The ESRB issued a warning about risks to EU financial stability (ESRB/2022/7). It calls for resilience in the financial system to be preserved or enhanced in order to support the economy if these risks materialise.

According to the ECB’s May 2022 Financial Stability Review, the war in Ukraine has increased the risks to financial stability. However, the European banking system has proved resilient. Challenges could also arise in relation to debt sustainability.

ESRB has published five warnings and two recommendations on medium-term residential real estate vulnerabilities and the assessment of compliance with recommendations issued in 2019 (ESRB/2021/10).