Basel Committee Scrutinizes Role of Crypto in Recent Banking Crises

Basel Committee Scrutinizes Role of Crypto in Recent Banking Crises



The Basel Committee on Banking Supervision which operates under the Bank for International Settlements has been closely examining the impact of cryptocurrencies on banking crises. While there are already restrictions on the amount of crypto that banks can hold in their reserves the committee observed that a few banks accumulating these assets played a role in the disturbances that occurred in March.



During their meeting held from October 4 5 the committee analyzed the reasons behind the downfall of banks such as Silicon Valley Bank, Signature Bank of New York and First Republic Bank. They also reviewed Credit Suisses collapse, which was later acquired by UBS. The committees findings highlighted three trends that indirectly contributed to these bank collapses; increased influence of non banking entities in financial intermediation


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#Banking, #Basel, #BaselCommittee, #Bitcoin, #Blockchain, #Cryptocurrency, #Cryptomarket, #Cryptonewstoday, #News

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