The European Banking Authority will conduct a joint investigation with the European Systemic Risk Board and the Financial Stability Board.
The European Banking Authority (EBA) is to investigate the interconnectedness of legacy banks with non-bank financial institutions (NBFIs).
The European Union’s banking regulator, the European Systemic Risk Board (ESRB) and the Financial Stability Board (FSB) will assess hedge funds, private equity and crypto platforms.
The intention was announced by the chair of EBA, José Manuel Campa, in a Jan. 3 interview with the Financial Times. Campa believes that the whole “underlying chain in NBFIs” should be traced to understand the scale of the potential for contagion between banking and non-banking financial institutions in a stress situation:
