ECB to Gather More Information from Banks on Geopolitical Risks They Face

Forex - The European Central Bank plans to request more information from banks about their exposure to geopolitical risks. According to sources familiar with the matter, the ECB is preparing to officially increase the importance of potential impacts arising from political events, including wars, on its list of banking supervision priorities for the upcoming years next month. The regulatory body's decision to intensify its scrutiny of geopolitical risks is one of the largest expansions in Claudia Buch's efforts since taking office at the beginning of the year. This decision comes at a time of heightened concerns regarding economic shocks caused by wars in Ukraine and the Middle East, as well as potential trade conflicts resulting from high tariffs imposed by elected President Donald Trump.