The SAFE Policy Center and the Centre for Economic and Policy Research (CEPR) organize and cordially invite you to attend a web seminar.
The ECB Financial Stability Review November 2025:
Box 5 on stablecoins
Barbara Attinger and Senne Aerts, both ECB
Special Feature B on bank-NBFI links
Daniel Dieckelmann, ECB
Moderator: Florian Heider, SAFE, Goethe University and CEPR
to be held on 3 December 2025, 12:00 - 13:00 CET, online via Zoom
Box 5 on stablecoins
If the market for stablecoins were to experience further significant growth, it could raise financial stability concerns, stemming from stablecoins’ structural vulnerabilities, such as de-pegging risks, and growing interconnections with traditional finance. Major stablecoin issuers now hold assets on a scale comparable to the world’s largest money market funds and have become significant buyers of US Treasury bills. As a result, a run on stablecoins could trigger fire sales and disrupt safe-asset markets. Continued expansion may also shift retail deposits into less stable wholesale funding, leaving banks more vulnerable to shocks. While current risks to euro area financial stability remain limited, divergent global regulations enable cross-border arbitrage and may create spillover risks, underscoring the need for better international regulatory alignment.
Special Feature B on bank-NBFI links
Linkages between euro area banks and entities in the non-bank financial intermediation (NBFI) sector can create systemic risks through two main channels: reliance on short-term liabilities from NBFIs, which are prone to flight risk, and the provision of credit to leveraged NBFI entities like hedge funds and real estate funds. These interconnections are particularly important for euro area global systemically important banks (G-SIBs). While the scale of these linkages is generally contained, they could make euro area banks vulnerable to asset price shocks which, by triggering NBFI funding outflows, retraction of leverage provision to NBFI entities and counterparty credit losses, could lead to forced deleveraging by banks and NBFI entities and asset fire sales. G-SIBs’ loss-absorbing capacity is thus essential to ensure the smooth provision of financial services in times of stress.
