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Financial stability report : december 2018

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      <subfield code="a">Financial stability report</subfield>
      <subfield code="b">: december 2018</subfield>
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      <subfield code="a">Although the prolonged low interest rate environment continues to pose significant challenges to insurers and pension funds, the risk of a sudden reassessment of risk premia has become more pronounced over recent months. Considerable political and policy uncertainty, trade tensions and gradual monetary tightening triggered a sharp corrections in equity markets, in particular for emerging markets. While the direct exposures of European insurers and pension funds on (affected) emerging markets is limited, they could still be impacted through their interconnectedness with banks and potential spillovers effects following further 'flight-to-quality' investment behavior</subfield>
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