Rising energy costs could increase market volatility and make it harder for governments, businesses and households to repay debt, the ECB said.
A giant Euro sign at the European Central Bank (ECB) headquarters in Frankfurt am Main, Germany, on Nov. 6, 2024. Kirill Kudryavtsev/AFP/Getty Images
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The European Central Bank (ECB) has warned that non-bank financial firms and companies hit by trade and energy shocks could heighten market stress and pose greater risks to eurozone banks.
The findings were published on May 27 in the ECB’s Financial Stability Review, as the war in the Middle East and energy supply disruptions continue to pressure Europe’s economy.
