| EBF MORNING BRIEF Monday 6 September 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
FT: Will the ECB slow the pace of its bond buying?
Silvia Ardagna, chief European economist at Barclays, said to the Financial Times (FT), she expected the ECB to trim its monthly bond purchases under the pandemic emergency purchase programme (PEPP) to €60bn-€70bn a month, from the current rate of €80bn. Ardagna also expects the central bank to raise its growth and inflation projections. Read more (€) Bloomberg: Deutsche Bank’s ESG probe triggers review at asset managers European asset managers are reviewing their ESG labeling and marketing claims following news of probes into the investing arm of Deutsche Bank. According to Bloomberg, anxiety around greenwashing is palpable across the industry. Investment firms across Europe have been trying to establish whether they’ll need to reclassify assets previously identified as ESG, and one major European fund manager even created an internal task force to review ESG procedures and products as a direct consequence of the DWS probes. Read more
Finextra: BBVA Switzerland launches Next Gen digital investment account
The Swiss arm of BBVA is launching a digital investment account that lets users build portfolios based on themes such as climate change and technologies while also providing a cryptocurrency wallet. Called Next Gen, the account offers users to access a full range of online banking services and Iban numbers, Finextra reports. They also get a wallet for storing, purchasing, and selling bitcoins, all integrated with the mobile app. Read more |
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REGISTRATION IS OPEN! European Banking Summit 2021:
BANKING ON THE FUTURE |
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 | The 5th edition of the European Banking Summit will bring together representatives from European Institutions, banks, and top researchers to discuss the industry’s challenges and opportunities and identify new trends. As the European banking sector faces a decisive moment, the discussion focuses on how banks will evolve to serve the emerging needs of society. Mairead McGuinness, EU Commissioner for Financial Services, Financial Stability, and Capital Markets Union will join us and deliver a keynote speech on the future of the sector. Register HERE |
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MAIN EVENTS
For a full-year overview of key financial regulation events: click here
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ABI EVENT Towards a Sustainable Finance for a Sustainable Economy
Thursday, 23 September / ONLINE
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 | On Thursday, 23 September, the Italian Banking Association (ABI) organises a conference titled 'Towards a Sustainable Finance for a Sustainable Economy' as part of the events coordinated by the Italian Presidency of the G20. It will be opened by Antonio Patuelli, ABI President, and Alessandra Perrazzelli, Deputy Director General at Banca d'Italia. A round table with experts from international institutions and market practitioners will follow. Closing remarks will be delivered by Giovanni Sabatini, ABI General Manager. For updates, check the ABI website and read more here. |
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FROM THE EBF MEMBERS
Finance Finland: Reform of banks’ capital requirement regulations could hit hard on lending
If the planned EU implementation of final Basel III standards goes through, many European banks’ capital requirements could rise substantially. In Finland, this would have adverse effects, especially on corporate and mortgage lending. It would damage banks’ capacity to finance economic recovery and green investment. The reform should be implemented according to the original mandate given by policymakers with no significant increase of capital requirements, Finance Finland argues. Read more
BdB: The greatest reform of all time in the DAX
On Friday, the German share index (DAX) underwent its most far-reaching reform in 30 years: 10 new companies have been promoted with the premier class of equity stocks growing from 30 to 40 stocks. The reorganization of the DAX is not a short-term project, but has been planned for a long time with the goal of using the DAX to map the German economy and adapt it to international standards. In this blog, the Association of German Banks (BdB) discusses the reasons behind the reform and the implications for investors. Read more (DE)
NVB: Financing companies by banks increased by almost four billion euros last month
Bank lending to companies during the corona crisis has grown from 60.5 to 64 billion euros in the past month. Since the start of the corona crisis, banks have helped 69,000 entrepreneurs with financing. This is evident from the eighth Corona Monitor bank of this year by the Dutch Banking Association (NVB). Read more (NL) |
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FROM THE INSTITUTIONS
ESMA: EMIR Reporting Guidelines
TheEuropean Securities and Markets Authority (ESMA) will hold an open hearing on EMIR Reporting Guidelines. The hearing is part of ESMA’s consultation on draft Guidelines on a wide range of topics related to data quality, data access, and reporting under EMIR Refit. The hearing will be moderated by the Chair of the Data Standing Committee, Dr Christopher Buttigieg. Read more
BIS: Fritz Zurbrügg: Mortgage and real estate markets: current developments pose risks to financial stability
Fritz Zurbrügg, Vice Chairman of the Governing Board of the Swiss National Bank, discusses developments on the mortgage and real estate markets. "The mortgage and real estate markets play a key role in the banking sector and are thus of great importance to overall financial stability. According to Swiss National Bank's assessment, the strong growth in these markets over recent years has given rise to vulnerabilities, and risks to financial stability have increased", he said. Read more
EIOPA: Monthly update of the symmetric adjustment of the equity capital charge for Solvency II – end August 2021
The European Insurance and Occupational Pensions Authority (EIOPA) has published the technical information on the symmetric adjustment of the equity capital charge for Solvency II with reference to the end of August 2021. Read more |
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FROM THE EBF
ECSAs: The banking sector calls for participation in the development of the EU e-ID Toolbox
The European Credit Sector Associations (ECSAs), submitted joint feedback on 30 August to the European Commission’s initiative for an EU digital ID scheme for online transactions across the Member States. The ECSAs include the European Banking Federation (EBF), the European Savings and Retail Banking Group (ESBG), and the European Association of Co-operative Banks (EACB). The organizations welcome the Commission’s proposal, announced on 3 June, for a regulation establishing a framework for a European Digital Identity, as well as the high ambitions outlined in the initiative, which represent a positive development in the creation of a future-proof EU single digital market. Read more European Commission consultation on CHF LIBOR: EBF response The EBF supports the Commission’s initiative to exercise the power to designate a statutory replacement rate for LIBOR CHF. Such a solution is urgently needed to safeguard counterparties from the risk of contracts discontinuity. The form of regulation guarantees direct and uniform application in all Member States, being immediately binding. The EBF supports the choice of replacing LIBOR CHF with a Swiss Average Rate Overnight (SARON) Compound Rate plus a tenor specific spread adjustment (Spread Adjustment Value). Such replacement will maintain the characteristics of the contracts and instruments, especially in the case of loans, thus guaranteeing continuity of contracts and providing legal certainty with the highest level of consumer protection. Read more
European Commission consultation on EONIA: EBF response
The EBF has stressed in various opportunities the need to find a legal solution and assess the potential terms by which a replacement benchmark would be nominated for EONIA, as well as for LIBOR (in all its currencies). The EBF, therefore, fully supports the Commission’s initiative to designate a statutory replacement rate for EONIA as part of a comprehensive solution for cash and derivative products, as this will provide legal certainty to the transition from EONIA to €STR. Read more |
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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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