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CEBS consultation on commodities businesses reveals risk areas

A consultation by a group of EU banking supervisors on issues arising from trade in commodities has identified market, operational, legal and liquidity risk as possible problem areas.

The Committee of European Banking Supervisors’ (CEBS) consultation, published on June 15, also said that no generalisations can be made regarding systemic risk.

The CEBS said: “Systemic risk crystallises through contagion transmitted via market participants' direct and indirect interdependencies. While the perceived interconnections may give rise to systemic risk concerns, their extent may depend

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