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Policy action needed on non-banks amid high financial stability risks, ECB says

( May 27, 2026, 09:32 GMT | Official Statement) -- MLex Summary: The outlook for euro area financial stability is being shaped by geoeconomic stress and energy supply disruptions, and the severity and duration of the fallout remain uncertain, the European Central Bank has said in its latest Financial Stability Review. Against this backdrop, persistent liquidity and leverage vulnerabilities in the non-bank financial intermediation sector called for a comprehensive policy response, it said, pointing out the significant exposures of euro area banks to non-banks and trade- and energy-sensitive firms.See attached report and press release....

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