Financial conditions have deteriorated worldwide and exhibit an unusual degree of uncertainty regarding their future evolution. After a long period of low interest rates and abundant liquidity, the monetary tightening revealed vulnerabilities in the banking sectors of certain developed economies. The turbulence that began in March following the failure of several banks has been mitigated by the swift and coordinated action of policy makers. Since then, the risks of abrupt asset price corrections and capital outflows have grown, especially in emerging economies. In a context where monetary policy may need to remain tight for longer in the developed world, market sentiment remains fragile regarding these countries’ banks and concerns remain about the extent and magnitude of latent vulnerabilities. Locally, the impact of these events has been limited, as the economy continues to resolve the effects of macroeconomic imbalances accumulated in recent years. In this process, the financial position of households has tightened, and saving rates have turned negative. Meanwhile, firms have been gradually reducing their indebtedness in the aftermath of the pandemic. The greater use of credit cards and credit lines among both households and businesses— has translated into greater exposure to interest rates, while defaults have returned to pre-pandemic levels, and the situation does not suggest the presence of elements of systemic risk. The local banking system has sufficient liquidity and solvency to withstand the stress scenario and —in view of the recent international banking situation— it differs in terms of its business model, regulation, and supervision. During the pandemic years, agents used up their savings and turned to borrowing to navigate the most severe crisis of recent times. The recomposition of their capacities to face new shocks has occurred at different speeds, and it is crucial for this process to go on. Going forward, it is essential to prioritize initiatives that promote saving and strengthen the financial system’s capacity to cushion adverse events.