The European Banking Authority (EBA), an independent EU authority that works to ensure an effective and consistent level of regulation and supervision across the European banking sector, intends to take a series of steps aimed at finding out how stresses in non-bank financial institutions (NBFIs), including crypto-related entities, may affect lenders.
According to the Financial Times, the potential contagion of problems at these institutions to the banking sector have highlighted the need to "dig deeper into the links between banks and other financial firms."
José Manuel Campa, president of the EBA, has stated:
"We should be doing more and we are going to be doing more. We need to have an understanding of the whole underlying chain in NBFIs."
The regulator has previously taken steps in order to ascertain the role that cryptocurrencies can exert on system stress. For example, in November it published draft rules on liquidity and capital requirements for stablecoin issuers.