July 7, 2020

Volume X, Number 189

July 07, 2020

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July 06, 2020

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ECB Publishes Bi-Annual Financial Stability Review

On May 26, the European Central Bank (ECB) published its 2020 bi-annual financial stability review (the Review).

In the Review, the ECB provides an overview of the potential risks to financial stability in the EU. A summary of the ECB’s key points are set out below:

  1. the COVID-19 pandemic prompted extreme financial market sell-offs and stress;
  2. corporations and households face lower income and rising debt burdens;
  3. fiscal measures provide essential support to the EU economy and its participants, but they have increased the public debt burdens;
  4. EU banks are well capitalized with reasonable liquidity buffers, but are nonetheless likely to face significant losses and further pressure to profitability as a result of the COVID-19 pandemic; and
  5. policy measures alleviate near-term risks to financial stability, but certain medium-term vulnerabilities have risen, including tighter financial conditions and fragile functioning in some markets, and a significant increase in debt burdens.

The Review is available here.

©2020 Katten Muchin Rosenman LLPNational Law Review, Volume X, Number 150

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About this Author

Carolyn H. Jackson, International Attorney, Katten Muchin law firm
Partner

Carolyn Jackson is a partner in Katten Muchin Rosenman UK LLP and is a Registered Foreign Lawyer. She provides US financial regulatory legal advice to a broad range of market participants, including commercial banks, investment banks, investment managers, broker-dealers, electronic trading platforms, clearinghouses, trade associations and over-the-counter derivatives service providers.

Carolyn guides clients in the structuring and offering of complex securities, commodities and derivatives transactions and in complying with US securities and commodities laws...

+44 0 20 7776 7625
Nathaniel Lalone, Katten Muchin Law Firm, Financial Institutions Attorney
Senior Associate

Nathaniel Lalone, a partner at Katten Muchin Rosenman UK LLP, has a broad range of experience in the regulation of financial products and financial markets, and frequently provides regulatory and compliance advice to trading venues, clearing houses and buy-side firms active in the over-the-counter (OTC) derivatives, futures and securities markets. He is actively involved in advising clients on the implementation of MiFID 2 and MiFIR in the European Union as well as the international reach of US financial services regulation. He also has significant experience with structuring and documentation relating to OTC derivatives and structured products.

Prior to joining Katten, Nathaniel was a member of the US Regulatory and the Derivatives and Structured Finance practices at Allen & Overy LLP.

+44 0 20 7776 7629
Neil Robson, private equity fund managers counselor, Katten Law Firm, London
Partner

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...

44-0-20-7776-7666