ECB flags risks from low interest rates, Greek situation

London

THE European Central Bank (ECB) said on Thursday that record-low interest rates were putting insurance firms and banks under increasing pressure and warned that any sell-off in stocks and bonds could damage the eurozone's recovery.

In its twice-yearly Financial Stability Review, the ECB also said risks from Greece for the eurozone's governments had "increased sharply" but that their borrowing costs and growth prospects were being helped by measures such as the ECB's bond-buying programme.

The negative side-effect of that though was the squeeze it was putting on insurance firms which are finding it increasingly difficult to find assets that pay out enough to cover their costs, and for banks in terms of their profitabilit…