Banks & Non-Banks Financial Risk Report Released

The ECB and ESRB issued a joint report analyzing financial stability risks arising from linkages between banks and the non-bank financial intermediation sector. The report identifies vulnerabilities and potential contagion channels between the two sectors, emphasizing the need for enhanced monitoring and regulatory oversight. The analysis aims to inform policy decisions aimed at mitigating systemic risks and ensuring the stability of the financial system. This report will likely lead to new regulatory measures to limit bank exposure to non-bank entities.

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