Financial shock - Crisiscenter

According to the European Central Bank, a financial shock is an unexpected failure in the financial sectors which have a significant impact on the economy. Examples of financial shocks include liquidity crises, currency or country devaluations, stock market crashes, debt crises, trade wars, etc.

Causes

Consequences

What can you do?

There are no specific recommendations for this risk.

Check out our general advice to follow before, during, and after an emergency.

Impact and probability

The figures relating to probability and impact describe an extreme financial shock. The BNRA theoretically describes such a scenario as follows:

A financial shock lasts more than 9 months.
There are various consequences: a rise in public debt (up 10% of GDP), a rise in unemployment (up 30%), a serious impact on the exchange rate and a drop of over 15% in the PMI index.

How should you interpret these results?

Within the BNRA, experts assessed three scenarios for each risk: considerable, major or extreme. On each page, you will find the results of the scenario with the highest score based on the combination of likelihood and impact. This does not mean that this scenario will occur or is the most likely. Read more here about how to correctly interpret the results.

Probability

Very weak

Human impact

Weak

Societal impact

Weak

Environmental impact

No impact

Financial impact

Very strong

What do the authorities do?

The FPS Economy is responsible for financial services in our country.

The National Bank of Belgium supervises the financial system.

Risks and causes