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2026-02-17 00:42:34
[ING: Eurozone Banks Face Funding and Liquidity Risks Due to Links with Non-Bank Financial Intermediaries (NBFIs)] Marine Leleux of ING Group, citing a report from the European Central Bank and the European Committee on Systemic Risk, noted that eurozone banks face funding and liquidity risks due to their links with non-bank financial intermediaries (NBFIs). Leleux stated, "Overall, eurozone banks are net debtors of the NBFI sector, which exposes them to vulnerability in terms of funding and liquidity." She pointed out that eurozone banks rely on non-bank intermediaries for deposits and to purchase bank bonds. "Data shows that short-term and concentrated funding dominates, and if these funding channels dry up, banks will face rollover and redemption risks."
