ECB Financial Stability Review November 2024 - SUERF e-lecture - 20241122

On 22 November 2024, around 140 international experts met for a SUERF BAFFI Bocconi e-lecture on “Key takeaways from the ECB November 2024 Financial Stability Review”.
Against the background of mounting geo-political tensions and structural weaknesses, the euro area economy is facing several challenges. High sovereign debt levels create vulnerabilities and limit fiscal policy scope. Ongoing monetary policy easing in response to a return of inflation towards target has yet to fully filter through to firms’ borrowing costs. The industrial and real estate sectors in several countries are in recession, affecting banks’ asset quality. While moderating somewhat from multi-year highs, banks’ profitability is set to remain above pre-covid levels, as reflected in robust capital and liquidity buffers. While private households’ consumption restraint puts a drag on growth, their increased saving bolsters financial resilience. Exuberance, concentration, and geopolitical uncertainty render financial markets vulnerable to sudden corrections and bouts of volatility. Non-bank portfolios may face valuation risks. A growing investment fund sector is prone to liquidity, leverage and concentration risks, entailing risks from fire sales for euro area bond markets. Macroprudential policies need to ensure resilience by further enhancing its tools and scope to better capture non-bank financial intermediaries.
Speakers and timeline:
00:00:13 - Welcome and Introduction: Ernest Gnan, Secretary General, SUERF
00:03:12 - Presentation of the ECB Financial Stability Review - November 2024: John Fell, Deputy Director General, Macroprudential Policy & Financial Stability, ECB, and SUERF Fellow
00:31:44 - Comments by Stefan Avdjiev, Adviser for Financial Stability, Bank for International Settlements
00:45:03 - Immediate answers by John Fell
00:47:57 - Comments by Nassira Abbas, Deputy Division Chief, IMF Monetary and Capital Markets Department
01:06:12 - Immediate answers by John Fell
01:10:35 - Q&A
01:20:05 - Concluding remarks and farewell
#financialstability #ECB #BIS #IMF #SUERF #FSR
Presentation slides: www.suerf.org/...
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