The European Central Bank (ECB) has intensified supervisory checks on major European banks regarding their access to U.S. dollar funding amid concerns linked to policies under the Trump administration. Sources indicate that some of the EU's largest banks, including UBS, JPMorgan Chase, Goldman Sachs, Morgan Stanley, Citigroup, and Deutsche Bank, are evaluating unprecedented scenarios in which the Federal Reserve might not provide dollars in times of financial stress. ECB supervisors have requested banks to assess their dollar funding needs in crisis situations, reflecting apprehensions about potential disruptions in dollar liquidity. Both ECB and Federal Reserve representatives have declined to comment on these supervisory activities. ECB officials, including Vice President Luis de Guindos, have highlighted ongoing trade tensions as contributing factors to financial market volatility. Additionally, there are concerns within the ECB that the U.S. could allow European banks to collapse if dollar liquidity is constrained. Meanwhile, ECB Governing Council member Martins Kazaks noted that the ECB is approaching its terminal interest rate and that the U.S. dollar is expected to remain the global reserve currency despite risks of a shallow, short recession. The ECB continues to monitor risks such as trade conflicts, high debt levels, and market volatility as key challenges for the eurozone economy.