Financial institutions

We assess the effectiveness of supervisory activities in mitigating credit risk stemming from banks’ commercial real estate portfolios. We analyse two activity types deployed by European banking supervisors: (a) on-site inspections, which assess in depth banks’ risk-taking and internal controls, but can only be selectively applied, and (b) off-site targeted reviews, which survey risk management practices across institutions, are less intrusive but are applied more widely.

This report summarises the methodologies used in the fifth wave of the Eurosystem Household Finance and Consumption Survey, which provides household-level data collected in a harmonised way in the 20 euro area countries at the time of collection, as well as in the Czech Republic and Hungary. The total sample size comprises almost 90,000 households. Although the survey does not refer to the same time period in all countries, the most common reference period for the data is 2023.

The paper documents models used to analyse the interactions and trade-offs between price and financial stability at the European Central Bank. The paper describes a simple conceptual framework to think about the short- and medium-term trade-offs between price and financial stability. Short-term trade-offs arise whenever current inflationary pressure is high, but the financial system is experiencing stress. Medium-term trade-offs arise whenever current inflationary pressure is low, but risk is building up in the financial system.

Meeting held 15 December 2025