FROM THE MEDIA

Reuters: EU watchdog sets out software capital relief for banks

The safety buffers of banks in the European Union would swell by billions of euros under proposed rules that allow lenders to include the value of software investments like cybersecurity in capital calculations. Currently a bank must deduct the value of software from its capital buffer upfront, adding 36 basis points to its core ratio or mandatory measure of stability. The European Banking Authority (EBA) said banks will be allowed to “amortise” or taper the value of software for capital purposes over three years. It marks a big win for banks who have long argued that current rules put them off updating cybersecurity systems and innovating in digital services for customers. Read more Finextra City AM

Bloomberg: U.K. Ready to Talk Trade Past Johnson Deadline

The U.K. is likely to continue trade talks with the European Union beyond Boris Johnson’s deadline of Oct. 15 as long as the bloc’s leaders signal they are prepared to make a final push. The prime minister will decide whether to carry on or walk away from negotiations after a meeting of EU leaders on Thursday and Friday, a person close to the discussions told Bloomberg. Read more Deutsche Welle Politico

NYT: Bank Earnings Show Diverging Fortunes on Wall Street and Main Street

Trading activity gave the big banks in the U.S. a boost during the third quarter while their consumer businesses slumped. And they aren’t counting on more stimulus, either, the New York Times writes. Hundreds of thousands of small businesses are closing for good. Temporary layoffs at larger companies are becoming permanent. But the country’s largest banks, which together serve a majority of Americans through loans, credit cards or deposit services, are not raising an alarm. Read more

MAIN EVENTS today

Council of the EU: European Council, two-day meeting

Santander International Banking Conference: Rebuilding the future: The next normal

For more events check the EBF planning calendar HERE

*All events take place in Brussels unless stated otherwise

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CYBERSECURITY & RESILIENCE:
THE BASIS OF IT ALL IN DIGITAL INNOVATION

ONLINE webinar, Thursday 22 October, 15:30 CEST

The conference is devoted to cybersecurity and resilience, the basis underlying every field of digital innovation. Taking place during the European Cyber Security Month and building upon the previous annual editions of the (physical) EBF Cybersecurity Conference, this year’s digital event aims to provide to explore the rapidly evolving cyber trends and challenges for banks.

Register here: http://ebf.eu/events/cyber-security-resilience/

FROM THE EBF MEMBERS

NVB: Ethical dilemmas in everyday work

In the fifth part of the Bank & Ethics series, the Dutch Banking Association (NVB) asked bank employees about ethical dilemmas in their daily work. Johan Staes, Rabobank, Chairman of the board, speaks about the way in which he deals with employees as a manager and Choy van der Hooft, ABN AMRO Managing Director, talks about the way in which her bank makes considerations in order to be transparent. She sees that weighing up dilemmas is not always just about evidence but a healthy common sense also plays a role. Read more (NL)

Finance Denmark: Record investment in Danish funds

Investors continue to invest in Danish investment funds despite uncertainty and large price fluctuations, and in the first nine months of the year, new money has been invested for almost DKK 70 billion. which is a record. Interest is particularly concentrated in foreign equities and bonds, which account for more than two-thirds of new investments, says Finance Denmark Kåre Valgreent. Read more (DK)

CBA: Banks offer individual assistance to clients even after moratoria

Banks are closely monitoring and evaluating the entire situation of their clients, in connection with the end of the moratorium on instalments in October. At the moment, we see no reason for the moratorium to be renewed, comments Czech Banking Association (CBA) Vladimír Staňura. Read more (CE)

Finance Norway: Collective bargaining agreement in finance

We are pleased that we were able to find a solution that all parties could accept, with a financial framework that is in line with the front subject, says Finance Norway Runa Opdal Kerr. She has been the employer's leading negotiation during the two days with Finansforbundet and LO. Read more (NO)

AEB: The Federico Prades Prize in its second edition

On 15 October, the president of the Spanish Banking Association (AEB) and its foundation, José María Roldán, will present the Federico Prades Award to Verónica Frisancho, senior economist at the Inter-American Development Bank, for her research on financial education in schools and its impact on the student environment. Read more (ES)

FROM THE INSTITUTIONS

EBA: Final draft RTS on prudential treatment of software assets

The European Banking Authority (EBA) published its final draft Regulatory Technical Standards (RTS) specifying the prudential treatment of software assets. As the banking sector is moving towards a more digital environment, the aim of these draft RTS is to replace the current upfront full deduction prudential regime so as to strike an appropriate balance between the need to maintain sufficient conservatism in the prudential treatment of software assets and their relevance from a business and an economic perspective. The final draft RTS keep a simple approach based on a prudential amortisation of software assets calibrated over a period of maximum three years. Read more

FSB Chair letter to G20 Finance Ministers and Central Bank Governors

The Financial Stability Board (FSB) has published a letter from its Chair, Randal K. Quarles, to G20 Finance Ministers and Central Bank Governors. It states that the FSB will provide a comprehensive report on the financial stability implications of, and policy responses to, the COVID Event to the November G20 Summit, including a holistic review of the market turmoil in March. The holistic review will inform future steps of the FSB in 2021 under the Italian G20 Presidency to improve the resiliency of the NBFI sector while preserving its benefits. Read more

WEF released blockchain the Global Standards Mapping Initiative

The World Economic Forum reported that industry leaders have released the Global Standards Mapping Initiative (GSMI), the first and most comprehensive effort to assess the current state of blockchain. Based on input from over 30 technical standard-setting entities, 185 jurisdictions and nearly 400 industry groups, the reports are accessible to the public and intended to serve as a resource for the blockchain community to develop thoughtful frameworks and standards to propel the industry forward. Read more

EP: The impact of the Wirecard scandal on major banks in the EU

A parliamentary question asked by MEP Eva Kaili from the Socialists & Democrats Group in the European Parliament on the impact of the Wirecard scandal on major banks, investors, auditors and supervisors in the EU has received a response from Executive Vice-President Dombrovskis. The question focused on the responsibility of regulators regarding the activities of Wirecard. Executive VP Dombrovskis responded that EU audit rules require national authorities to supervise statutory auditors’ activities. The Commission expects the German audit oversight body to investigate whether Wirecard’s auditors followed EU rules. Read more

ECB: A review of economic analyses on the potential impact of Brexit

ECB occasional paper 'A review of economic analyses on the potential impact of Brexit' summarises the economic analyses of the potential impact of Brexit on the United Kingdom, European Union (EU) and euro area. Starting with trade in goods and services, it is clear that Brexit will give rise to trade barriers – both tariffs and NTBs – between the EU and the United Kingdom. The impact of these trade barriers will be compounded by the dense network of value chains linking activity in the EU and the United Kingdom. Those tariffs and NTBs, applied to the flow of intermediate goods that today are freely traded back and forth across the Channel, will accumulate at each crossing, increasing the costs of production and narrowing firms’ profits. Read more

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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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