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PANews news on January 3, according to Jin Shi, citing the Financial Times, José Manuel Campa, president of the European Banking Authority, said that EU regulators will investigate in depth the links between banks and other financial institutions such as hedging funds. There is growing concern that stress across the financial system could spill over. Referring to regulators' efforts to predict how banks will be affected by stress on non-bank financial institutions, including hedge funds, private capital companies and crypto assets groups, he said they need to understand the entire potential chain of non-bank financial institutions.


The European Banking Authority will work with the European Systemic Risk Committee and the Financial Stability Board to better understand how the shadow banking shock will ripple across the system, Campa said. The institution is already assessing banks' balance sheet exposures to non-bank institutions, including loans.
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