FRANKFURT, Germany (AP) — The European Central Bank says broad-based economic growth is keeping banks and markets stable in the 19-country eurozone — but warned that increased risk-taking by investors could mean trouble down the road.
The ECB made its comments Wednesday in its twice-yearly financial stability review. The review aims to keep the public and government officials aware of potential problems that could disrupt the wider economy.
The report said the eurozone’s increasingly robust recovery “is supporting financial stability” and that there’s no widespread overvaluation in eurozone’s financial markets.
But markets remain vulnerable to sudden turns if investors get bad news that changes their risk outlook. The report noted that recent increased risk-taking in financial markets could “sow the seeds for large asset price corrections in the future.”
