European Banking Authority Increases Oversight on Non-Bank Financial Institutions, Including Crypto

The European Banking Authority (EBA) is increasing its efforts to assess the potential impacts of strains in non-bank financial institutions (NBFIs), including those related to crypto assets. EBA Chair José Manuel Campa expressed concerns over contagion and the need to understand the interconnectedness between banks and various financial entities. The move reflects a proactive stance by regulatory authorities to enhance the resilience of the financial sector against emerging risks, particularly in the evolving landscape of digital assets and cryptocurrencies. The evaluation of indirect links between banks and NBFIs seeks to enhance regulatory measures and fortify the financial system against potential vulnerabilities.