EBF MORNING BRIEF Monday 31 May 2021 Good morning. Here are the top news stories and events in European banking, financial regulation and EU policy, brought to you by the European Banking Federation.
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FROM THE MEDIA
Bloomberg: ECB to scrutinize gender diversity when banks name top officials
Bloomberg reports that the European Central Bank (ECB) will seek to ensure lenders respect national frameworks and their own rules on gender diversity when naming top officials in an industry that’s still dominated by men. Women only account for a quarter of top management at European banks and a third of their Boards, said Andrea Enria, who leads the ECB’s supervisory board. Many European banks lack diversity policies and those that do have them “still have a long way to go in terms of implementing them fully,” Enria adds. Read more
Reuters: France's Villeroy says bank dividend curbs should be lifted in September
Restrictions imposed last year on bank dividend payouts due to the economic crisis caused by the pandemic are likely to be lifted in September, Francois Villeroy de Galhau, Head of the ACPR French financial regulator said. While the European Central Bank (ECB)’s final decision is due by the summer break, there is no need to maintain those measures beyond next year. According to Reuters, Villeroy also said regulators were closely looking at the risk that a rise in bankruptcies could pose for banks, but so far had not detected a significant increase. Read more
VOX EU/CEPR: Financial integration and structure in EMU during the corona crisis
The coronavirus health crisis also had a strong impact on financial systems. This column discusses its effects on euro area financial integration and financial structure. It illustrates how decisive monetary, fiscal and prudential policy responses first contained and then reversed the initial sharp fragmentation in asset prices across member countries. Overall cross-border asset holdings, however, still have to recover. The emerging alignment between common monetary and fiscal measures through the adoption of the three European safety nets and the Next Generation EU recovery programme seem to have been a game-changer in this regard. The resilience of financial re-integration to potential future shocks to the Economic and Monetary Union (EMU), however, should be monitored going forward. The different phases of the pandemic also went along with sizeable shifts between different corporate financing tools and different financial intermediaries, VOX EU/CEPR reports. Read more |
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MAIN EVENTS EBF Banking Committee for European Social Affairs virtual meeting
For a full-year overview of key financial regulation events: click here
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FROM THE EBF MEMBERS
NVB: Banks and customers working together to finance a green economy
Legislation and regulations from the European Sustainable Finance Action Plan (SFAP) must ensure a green European economy. The policy instruments in the SFAP, such as the recent EU Taxonomy, are "primarily designed to help institutional investors - pension funds, insurers, asset managers and private banking operations - to invest more sustainably and to combat 'greenwashing'", Hans Biemans, Chair of the Taxonomy Working Group of the European Banking Federation (EBF) and Managing Director and Head of Sustainable Markets at ING explains. In turn, banks can help customers in their sustainable transition, the Netherlands Bankers Association (NVB) reports. Read more (NL)
Finance Denmark: Danish financial organizations call for action on Fintech talent shortage Finance Denmark, Copenhagen Fintech, the Confederation of Danish Industry, and Forsikring & Pension have presented a joint press release with nine recommendations to the Danish Parliament on how to strengthen talent development in Fintech to ensure the competitiveness of the industry. Despite progress in the Danish Fintech industry, there is indeed a great need for talent if the sector is to maintain momentum. Read more (DK)
UK Finance: Lenders call on the government to review financial support for struggling homeowners
Support for Mortgage Interest (SMI) helps struggling homeowners, but critical changes are needed to make sure households are helped before their financial situation deteriorates. As it stands, homeowners are left to wait 39 weeks to claim SMI. The Building Societies Association and UK Finance are calling for permanently reducing the wait time to access SMI from 39 weeks to 13 weeks while allowing people on Universal Credit to claim SMI if they are working reduced hours. SMI is a loan and not a benefit, meaning that changes will have a very limited impact on the government purse. Read more |
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FROM THE INSTITUTIONS
EBA: Staff Paper on Testing capacity of the EU banking sector to finance the transition to a sustainable economy
The European Banking Authority (EBA) has published a Staff Paper on Testing capacity of the EU banking sector to finance the transition to a sustainable economy. The paper aims to identify vulnerable exposures, improve understanding of financing needs and support the greening of the financial sector. Read more
ESMA: Guidance on Funds’ marketing communication
The European Securities and Markets Authority (ESMA) has published the final report on its Guidelines under the Regulation on cross-border distribution of funds. The Guidelines specify the requirements that funds’ marketing communications must meet, including being identifiable as such, equally describing the risks and rewards while containing clear, fair and not misleading information. Read more
ECB: A turning point in the pandemic
The outlook has brightened, but the recovery still depends on continued policy support, Executive Board member at the European Central Bank (ECB), Isabel Schnabel tells Reuters. Asset purchases under the PEPP will depend on financing conditions and the inflation outlook. There will be no mechanical tapering. Read more
European Commission weekly schedule
Find out more about the European 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
European Parliament weekly schedule Find out more about the Parliament's engagements and activities for the upcoming week. Read more |
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FROM THE EUROPEAN BANKING FEDERATION
EBF calls for next steps to strengthen economic recovery in Europe: EBF Board Communiqué
The Board of the European Banking Federation (EBF) reiterated that European banks stand ready to continue supporting businesses and households amid growing uncertainty over the pace of the economic recovery. The EBF board also highlighted the need to evolve the policy response to ensure a ‘soft landing’ to the new normal and expressed confidence in governments’ commitment to avoiding a ‘cliff-edge’ effect. Read more
EBF & S&P Global Market Intelligence: Managing Credit Risk during the COVID-19 Crisis & Recovery Phase in Europe
Over the past year, the European banking industry has been hit by volatile markets, worsening economic conditions and business continuity challenges. Highlights from the EBF and S&P Market Intelligence webinar on the impact across the banking landscape and how default assessment plays a pivotal role in the recovery are now available. Speakers' presentations and full webinar available HERE |
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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 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 |
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