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A top US banking regulator told banks on Thursday to be more vigilant about guarding against unlikely but extreme risk as Russia’s invasion of Ukraine and the surge in crypto trading has created a range of new financial threats.

Image: Reuters

He cited the potential spread of the conflict in Europe, Russian cyber attacks, and further surging inflation as risks banks need to stay on top of with internal scenario testing. “It doesn’t take a lot of mental gymnastics to envision scenarios where multiple tail risks materialise simultaneously or in rapid sequence,” he warned.

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