Regulators Not up to Speed on Banks’ Digital Marketplaces, EU Watchdog Says

European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium on May 5, 2021. Yves Herman/Reuters

LONDON—Regulators have little understanding of risks from banks creating digital marketplaces with tech companies and a framework is needed to spot potential contagion if things go wrong, the European Union’s banking watchdog said on Tuesday.

The European Banking Authority’s warning is the latest sign that financial regulators are starting to pay more attention to Big Tech’s increasing links with finance, such as in cloud computing.