In a shock-prone world, preparedness and adaptability are key.
The European Stability Mechanism (ESM) conducted a comprehensive review of its lending volume,
capital adequacy, and financial assistance instruments to assess if
these resources remain fit for purpose.
The review identified how the
toolkit can best be used and further optimised to address the threats to
financial stability stemming from the challenges of today, such as
climate change and geopolitical tensions. (...)
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