The ECB presses banks on dollar financing amid Trump concerns.
EU supervisors intensify demands to reduce liquidity risks, sources say.
Senior bankers assess unprecedented scenarios of dollar retention by the Fed in emergency situations.
The risks of dollar freezing by the Fed amid the crisis stand at 5%, up from the previous 0%, according to a source.
LONDON, May 14 (Reuters) - Supervisors from the European Central Bank are asking some regional lenders to assess their need for US dollars in times of stress, while evaluating scenarios where they cannot rely on turning to the Federal Reserve under the Trump administration, three people with knowledge of the discussions said.
Almost one fifth of the eurozone banks' financing needs are denominated in US dollars, and lenders turn to the markets for short-term funding, which can abruptly close during periods of financial stress. Previously, European central banks turned to the Federal Reserve (Fed), the source of the currency, to offset the shortfall.
