Interdependence of the European Central Bank’s Policy and Financial Stability in the Eurozone

The paper investigates the influence of the European Central Bank's (ECB) policy on financial stability in the Eurozone and proves that before the world financial crisis of 2008–2009 and the European debt crisis, the ECB did not pay enough attention to the maintenance of financial stability. The author evaluates main ECB crisis measures and their impact on financial stability and argues that the unconventional monetary policy measures contributed to economic recovery, but they did not result in complete stabilisation of the European financial system. Moreover, according to the author, the ECB's non-standard measures failed to fulfil the conditions required for acting as a lender of last resort, what continues to threaten the financial stability. In the context of heterogeneity of the Eurozone countries and global financial challenges, the difficulties of maintaining financial stability are principally related to the common currency and the single monetary policy.