EU plans sweeping stress test of non-banks

Officials from the main financial supervisory bodies of the European Union are discussing the details of such a systemic stress test for non-bank institutions.

EU plans sweeping stress test of non-banks

Move likely to raise concerns among hedge funds and private credit groups of greater regulatory scrutiny

Drumbeat Gets Louder for Nonbank Regulations

Nonbanks have risen in stature and as key players in the global financial system, especially in the wake of the Great Recession earlier in the millennium. However, hedge funds, private credit entities and FinTechs, along with Big Tech firms, that have become lenders of size and scope may warrant a closer look from regulators, according to bankers. The Federal Reserve Bank of New York said in a Wednesday (May 21) blog post that banks and nonbanks…

Measures should generate concern between hedge funds and private credit groups before possible increase in taxation by regulators

The EU is planning stress testing for hedge funds and private debt companies, after which it may initiate greater supervision of these financial institutions.

12:11 Hedge funds, private investors and other non-banking institutions are playing an increasingly important role in the financial system. European regulators now want to investigate how crisis-proof the...