The ECB is sounding alarm bells because the financial system is heading toward unprecedented chaos. Banks face a perfect storm of trade wars, cyberattacks, climate disasters and geopolitical tensions that could trigger severe market crashes. Stock prices are dangerously inflated and don't reflect the massive risks lurking beneath the surface.
European banks are fundamentally strong and well-positioned to handle current uncertainties. The banking sector maintains robust capital levels, healthy liquidity positions and low non-performing loans while demonstrating remarkable resilience during recent market volatility. Banks have successfully weathered trade tensions and proven their ability to support economic growth.
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