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Euro area financial stability environment remains challenging
Low interest rates support economic activity, but there can be side effects Signs of excessive risk-taking in some sectors require monitoring and targeted macroprudential action in some countries Banks have further increased resilience, but have made limited progress in improving profitability Downside risks to global and euro area economic growth have increased and continue to create financial stability challenges, according to the November 2019 Financial Stability Review (FSR) of the European Central Bank (ECB). Low interest rates should support economic activity in the euro area, but may also encourage excessive ... (full story)