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Recent Editions
Risk Channel
North America
Federal Reserve Governor Stephen Miran has called for a reworking of Wall Street regulations before policymakers weigh other economic questions around the central bank’s balance sheet. “For many years, financial regulation mostly moved in one direction, increasingly restricting the banking sector,” Miran said, going on to observe that there was regulatory over-reach following the 2008 financial crisis, which caused many traditional banking activities to migrate away from the regulated sector. “While I have no bias against nonbank financial companies, credit allocation should be driven by market forces, not regulatory arbitrage,” he said.
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Risk Channel
UK/Europe
EU regulators have designated 19 major tech firms - including Amazon Web Services, Google Cloud, and Microsoft - as critical third-party computing providers to the financial sector under the Digital Operational Resilience Act (DORA). The law, active since January 2025, allows EU-level regulators to directly oversee these companies to ensure operational resilience. The move addresses concerns about widespread cloud service outages disrupting banking systems. Firms including IBM, LSEG, and Microsoft welcomed the designation and pledged to strengthen cybersecurity compliance. The UK plans to follow suit with a similar regulatory regime by 2026 as concerns grow over financial system vulnerabilities tied to tech reliance.
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