( www.forbes.com ) FRANKFURT (AFX) – EU financial stability may be ‘seriously’ impacted by recent rapid growth of the hedge fundsindustry, said Edgar Meister, chairman of the ECB’s Banking Supervision Committee.
‘For example, hedge funds can seriously affect financial stability through their largest creditors and counterparties, meaning banks,’ Meister said.
‘But most banks dealing with hedge funds have advanced risk management standards,’ he said on presenting the ECB’s annual report on banking stability.
