Key takeaways from the ECB November 2025 Financial Stability Review

While the global real economy is slowly adapting to major policy shifts, uncertainty remains high amid persistent geopolitical tensions. Questions about US fiscal debt and Fed independence is dampening rate expectations despite above-target US inflation. In some euro area economies, high and rising public debt is increasingly seen as difficult to reverse in a polarized political climate and in the face of rising overall sovereign bond yields. These developments have contributed to the gold price reaching all-time highs. Meanwhile, financial asset valuations and risk premiums appear to not fully reflect the prevailing uncertainty and risks. The race among US and Chinese AI firms is creating hopes for higher long-term productivity growth. At the same time, fears of overvaluation are particularly wide-spread in the AI and related sectors. Fragilities in private credit have ignited fears about problems arising from the NBFI sector. What are the implications of the complex interplay of developments for financial stability in the euro area? How might policy makers respond if risks were to materialize?

In this webinar, key findings of the latest ECB Financial Stability Report will be presented by the report’s key coordinator. Two senior central bankers will comment. There will be the opportunity to ask questions to the speakers during the event.

The Financial Stability Review provides an overview of potential risks to financial stability in the euro area. It aims to promote awareness in the financial industry and among the public of euro area financial stability issues. It is published twice a year, with the next release provisionally set for 26 November 2025.