## Euro Area Policies: Financial System Stability Assessment

_IMF Staff Country Reports, July 23, 2025_

## Source details

**Canonical URL:** [Euro Area Policies: Financial System Stability Assessment](https://www.imf.org/en/publications/cr/issues/2025/07/24/euro-area-policies-financial-system-stability-assessment-568894)

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## Bibliographic details
- Published: July 23, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229017923.002

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### System resilience and recent shocks
- The euro area financial system "had proven resilient through multiple shocks, supported by significant bank capital and liquidity buffers."
- The sector "is currently experiencing heightened volatility."
- At the outset of the FSAP:
  - "inflation was declining"
  - "monetary policy easing"
  - "economic recovery was gradually gathering strength"
- Since the FSAP began:
  - "geopolitical tensions and trade policy uncertainty have since clouded the outlook, amplifying financial market volatility."

### Nonbank financial intermediation (NBFI) and market structure
- "Nonbank financial intermediation (NBFI) has expanded rapidly, diversifying the financial landscape."
- Market integration and depth remain constrained: "renewed efforts to create deeper and more integrated markets remain hindered by national fragmentation."

### Key policy and supervisory themes
- Subjects highlighted in the assessment:
  - Anti-money laundering and combating the financing of terrorism (AML/CFT)
  - Asset and liability management
  - Crime
  - Financial Sector Assessment Program
  - Financial sector policy and analysis
  - Financial sector stability
  - Liquidity
  - Stress testing
- Keywords emphasized: AML/CFT, area financial system, euro area banking system, Europe, Financial Sector Assessment Program, Financial sector stability, FSAP finding, Global, infrastructure regulation, Liquidity, liquidity Risk metrics, market scenario, market volatility, Stress testing

### Publication metadata and practical notes
- Publication title: Euro Area Policies: Financial System Stability Assessment
- Publication date shown on page: July 23, 2025
- Format: IMF Staff Country Reports
- Available actions indicated: Download PDF, More Formats on IMF eLibrary, Order a Print Copy, Create Citation, Share

*International Monetary Fund — Euro Area Policies: Financial System Stability Assessment (July 23, 2025).*

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- **1eurea2025002**
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_Source: https://www.imf.org/en/publications/cr/issues/2025/07/24/euro-area-policies-financial-system-stability-assessment-568894_