EBF MORNING BRIEF Monday 20 April 2020 Good morning. Here the top news stories and events in European banking, financial regulation and EU policy, brought to you by the European Banking Federation. Recommend the EBF newsletters to a colleague. Click here to sign up! |
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FROM THE MEDIA FT: ECB pushes for eurozone bad bank to clean up soured loans European Central Bank officials have held high-level talks with counterparts in Brussels about creating a eurozone bad bank to remove billions of euros in toxic debts from lenders’ balance sheets, reports the FT. The plan to deal with debts left over from the 2008 financial crisis is being pushed by senior ECB officials, who worry the coronavirus pandemic will trigger another surge in non-performing loans (NPLs) that risks clogging up banks’ lending capacity at a critical time. Read more (€) Bloomberg: Banks seek to set aside billions for bad loans post-Corona Banks are in talks with auditors and rivals to determine which economic forecasts can be justified to avert stashing large amounts of money, reported Bloomberg on Friday, while banks will likely try to spread out provisions over a period of 18 months. Read more Euractiv: Europe needs at least €500 billion from institutions Europe will need at least another €500 billion from European Union institutions to nance its economic recovery after the coronavirus pandemic, on top of the agreed half-a-trillion package, the head of the euro zone bailout fund said according to Euractiv. Read more Bloomberg: ECB is flexible and could do more if needed The European Central Bank could take further action if needed to support the euro area through the economic crisis sparked by the coronavirus outbreak, policy makers at the institution said according to Bloomberg. Read more Reuters: Italy PM calls for EU solidarity in support of coronabonds Italian Prime Minister Guiseppe Conte has repeated calls for the European Union to issue common euro zone bonds to demonstrate the bloc’s solidarity in tackling the coronavirus crisis, says Reuters. Meanwhile, FT columnist Wolfgang Munchau argues that when northern Europeans discuss eurobonds or similar instruments, they frame the debate in terms of solidarity and charity or, in the Dutch case, as a gift, and not as an insurance premium. Read more FT(€) S&P Global: Banks face elevated money-laundering risks amid crisis A hike in coronavirus-related financial crime is presenting new challenges for banks, which could face significant reputational and regulatory repercussions if they are found to have acted unethically during the crisis, says S&P Global MI. Read more |
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EBF MEMBERS IN THE NEWS UK: In times like these we learn to govern again In times of distress, businesses can often reap the rewards of efforts they made during calmer periods. The Financial Conduct Authority (FCA)’s consultation on operational resilience ensured that this idea has dominated senior conversations since last year. Read more Luxembourg: Sustainable Finance track for Economics students In September 2020, Finance and Economics Masters students in their second year of study at the University of Luxembourg will be able to choose Sustainable Finance as their specialisation. This new track, supported by a Chair in Sustainable Finance, will give students the skills they need to face a rapidly evolving economic context where climate change is creating risk and uncertainty at all levels of the corporate structure. Read more Germany: How can we better use data during and after Covid-19 crisis? The current corona pandemic shows us what possibilities modern technologies have created to analyse, combat and manage crises. By aggregating data and methods of artificial intelligence (AI), for example, researchers found evidence of the outbreak of a new disease in the Chinese province of Hubei even before WHO experts saw it coming. Read more (DE) Denmark: 98 out of 100 companies have been assisted by the bank Reports from four of Denmark's largest banks show that 98 per cent of companies - large and small - who have approached the bank for help during the corona crisis have been met. The four banks have helped a total of 4700 companies - of which 4200 small and medium enterprises - with approx. 62 billion crowns. This shows a new statement from Finans Danmark. Read more (DK) Ireland: No wages and salaries payment delay Banking & Payments Federation Ireland (BPFI) is advising businesses that due to the upcoming European May Day holiday, payment requests for wages and salaries due on the 1st May should be submitted earlier to ensure employees receive their pay on time. Read more |
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FROM THE INSTITUTIONS EU Parliament: Proposed amendments to the Treaty establishing ESM EU Parliament has published an in-depth analysis of the proposed amendments to the treaty establishing the ESM. Following discussions around an ESM instrument to deal with the coronavirus outbreak, this paper also addresses the agreement reached at the 9 April Eurogroup. Read more ECB provides temporary relief for capital requirements for market risk ECB Banking Supervision provided temporary relief for capital requirements for market risk. These measures include the ECB to temporarily allow lower capital requirements for market risk and to move aims to maintain market-making activities and market liquidity. This decision will be reviewed by the ECB after six months. Read more BIS: Macroeconomic effects of Covid-19: an early review BIS has published a report on the macroeconomic effects of Covd-19. It finds that the short-term costs of Covid-19 will probably dwarf those of past epidemics, due to the unprecedented and synchronised global sudden stop in economic activity induced by containment measures. Read more EIOPA: The impact of Covid-19 on the occupational pensions sector EIOPA has issued a statement on principles to mitigate the impact of Covid-19 on the occupational pensions sector. They recognise the stabilising role that institutions for occupational retirement provisions (IORPs) can play as long-term investors in the current economic climate. Read more EIB establishes EUR 25 billion guarantee fund in response to Covid-19 The EIB group has established a €25 bn guarantee fund to deploy new investments in response to the Covid-19 outbreak. The fund will enable the EIB Group to scale up its support for European companies up to an additional €200 billion – with a focus on SMEs. Read more Commission supports the INATBA Covid Task Force The European Commission and the European Blockchain Partnership support blockchain initiatives that can help address challenges posed by the Coronavirus outbreak. The International Association of Trusted Blockchain Applications (INATBA) launches the Covid-19 Solutions Task Force, which aims to build a database of the blockchain solutions that address challenges caused by the Coronavirus outbreak. Read more Commission calendar for this week Find out more about the Commission's engagement and activities for the upcoming week. Read more European Central Bank weekly schedule Find out more about the ECB's engagements and activities for the upcoming week. Read more EU Parliament agenda Find out more about the Parliament's engagements and activities for the upcoming week. Read more |
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Banking in a Digital World: Drivers and Trends BANKING ESSENTIALS WEBINAR TUESDAY 19 MAY 15:30  |
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 The European Banking Federation and fTLD Registry Services (fTLD) are partnering to educate the European banking sector about the cybersecurity role .BANK plays in protecting banks against Business Email Compromise (BEC) scams, phishing and spoofing attacks that lead to breaches, identity theft and financial fraud. fTLD administers the .BANK domain and the EBF has served on its Advisory Council since 2013. To learn more about the security benefits of .BANK, visit https://www.register.bank/ebf/ or contact fTLD at EBF@fTLD.com. |
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ABOUT THE EUROPEAN BANKING FEDERATION The European Banking Federation is the voice of the European banking sector, bringing together national banking associations. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere. |
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