"Governor Cook Highlights Geopolitical Tensions' Impact on Financial Stability"

In a speech at the Central Bank of Ireland, Governor Cook emphasized the importance of financial stability and discussed the risks and vulnerabilities in the financial system. While acknowledging the progress made in boosting resilience since the Global Financial Crisis, Cook highlighted concerns regarding valuation pressures, excessive borrowing by businesses and households, financial-sector leverage, and funding risks. He also mentioned near-term risks such as inflationary pressures, potential losses in real estate markets, banking-sector stress, market liquidity strains, and geopolitical tensions. Cook emphasized the need for vigilance and stronger oversight to mitigate these risks and enhance the stability of the global financial system.