The European Central Bank warns of the exposure of major banks in the euro area to a problem

The European Central Bank has warned that major banks in the eurozone could be hit or in trouble if their financial clients such as funds, insurance companies and clearinghouses withdraw their deposits. This could happen if non-bank financial intermediaries (NBFI) are hit by outflows or lose confidence in a bank. .

The ECB stated that "this financing may be highly sensitive to the credit quality of the recipient banks and could amplify the financing pressures that banks face if the soundness of their fundamentals is questioned." The ECB emphasized that “if one or a group of these banks were to become distressed, there could potentially be significant ramifications in terms of the ability of large parts of the NBFI sector to manage liquidity and market risk.”