EU banking watchdog to probe links between banks and crypto entities
The European Banking Authority (EBA) is proposing testing to see if tensions in non-bank financial institutions (NBFIs), including crypto currency-related entities , will impact lenders. According to the Financial Times, EBA chairman José Manuel Campa expressed concern about the need to “deepen the links between banks and other financial firms.” “We should be doing more, and we will be doing more. We need to have an understanding of the whole underlying chain in NBFIs.” José Manuel Campa, EBA chairman The EBA has already taken some action to address the role that crypto currency could play in stressing the system. Last November, the regulator published draft rules on liquidity and capital requirements for stablecoin issuers under the EU’s new Markets in Crypto-Assets (MiCA) regulation. The EBA has also proposed rules requiring individuals with a stake of more than 10% in a crypto company to be screened for convictions or sanctions and directing cryp...