📝EBF Morning Brief - Monday 3 October: EU watchdog says banks need $1.2 billion to meet capital rules in full

EBF MORNING BRIEF Monday 3 October 2022

FROM THE MEDIA

Reuters: EBA says banks need $1.2 billion to meet capital rules in full

Banks in the European Union will collectively need a further 1.2 billion euros to meet a set of global capital rules in full by 2028, the bloc's banking watchdog said. As reported by Reuters, Ana Botin, president of the European Banking Federation and chair of Banco Santander, told an EBF conference that reliance on banks will increase as EU states and companies borrow more to revive growth and transition to net zero. Read more

Bloomberg: Euro banks shatter uneasy calm as recession fears mount

Europe’s banks have remained sanguine on their outlook for this year. But with recession odds rising, they worry about souring loans. Bloomberg now predicts a roughly 1% contraction in the euro-region economy, starting in the fourth quarter. Read more

Finextra: FCA’s amendment to the 90 day PSD2 rule comes into effect

As of November 2021, the FCA amended the rule and users can now confirm service providers’ access to data using Strong Customer Authentication (SCA). According to Finextra, this change to the regulation will impact all open banking service providers and customers. Read more

MAIN EVENTS

European Parliament plenary session (Strasbourg)

Eurogroup

CEPOL ‘Financial Intelligence and Analysis’ event

European Commission and European Economic and Social Committee 'European Circular Economy Stakeholder Platform' event

For a full-year overview of key financial regulation events: click here

FROM EBF MEMBERS

NVB: More options for Ukrainians to apply for a payment account

As of Monday, October 3, Ukrainian refugees in the Netherlands will have more options to apply for a payment account, with documents that could not previously be used by payment service providers. The new possibilities have been created thanks to intensive cooperation with the Dutch Banking Association (NVB). Read more (NL)

Finance Denmark: Banks' earnings hit by loss in exchange rates

The accounts for the first half of the year for the 14 largest banking and mortgage groups show that profits have fallen primarily as a result of the extraordinary interest rate increases that have characterized the first half of 2022. When interest rates rise, the rate of bonds falls, Finance Denmark says. Read more (DK)

UK Finance: Operational Resilience and Third-Party Risk Management

The operational resilience framework has occupied many waking moments of senior managers at UK financial institutions for the past three years. It has been a compliance requirement since March 2022. According to UK Finance, institutions have invested significant time and effort in reviewing the requirements and working out how best to implement them. Read more

FROM THE INSTITUTIONS

ESAs propose disclosures for fossil gas and nuclear energy investments

The three European Supervisory Authorities (ESAs) have delivered to the European Commission their Final Report with draft Regulatory Technical Standards (RTS) regarding the disclosure of financial products’ exposure to investments in fossil gas and nuclear energy activities under the Sustainable Finance Disclosure Regulation (SFDR). Read more

EBA: Technical package for phase 3 of its 3.2 reporting framework

The European Banking Authority (EBA) published the technical package for phase 3 of version 3.2 of its reporting framework. The technical package supports the implementation of the updated reporting framework by providing standard specifications and includes the validation rules, the Data Point Model and the XBRL taxonomies for version 3.2. Read more

ECB: Monetary policy in a cost-of-living crisis

Falling real wages will weigh on aggregate demand, says European Central Bank (ECB) Executive Board member Isabel Schnabel. But today’s crisis is damaging potential output, and firms’ efforts to protect their profit margins imply that inflationary pressures may remain elevated. Read more

FROM THE EBF

EBF president says that governments, regulators and banks in Europe should work together to accelerate the green transition

Ana Botín, European Banking Federation (EBF) President and Executive Chair of Banco Santander, has urged European leaders to work together with banks to accelerate the transition to net zero in response to the energy and climate crisis. Speaking at the EBF’s European Banking Summit 2022, she welcomed the EU’s ambitious plans to invest in the transitions and highlighted the urgent need for action to end Europe’s current dependency on Russian energy and meet net zero targets. Read more

New EBF Vacancies! Work with us!

Visit our Vacancies page to learn more about the opening positions at the EBF. Read more

ABOUT THE EUROPEAN BANKING FEDERATION

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The federation 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. Website: www.ebf.eu

European Banking Federation