The Federal Reserve Bank of New York is tightening its monitoring of European lenders to check their vulnerability amid signs of growing financial stress, The Wall Street Journal reports. It is asking for more data to ascertain if they have reliable access to funds needed for their day-to-day operations.
It also wants their U.S. structures overhauled to insulate them from pressures their parent banks in Europe may face. The Fed has also been talking with New York’s superintendent of financial services to monitor the funding positions of foreign banks.
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