| EBF MORNING BRIEF Thursday 22 July 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
Finextra: New EU AML rules will ensure full traceability of crypto transfers
The European Commission is to extend anti-money laundering rules to the entire crypto sector as part of a wider overhaul of financial crime safeguards. At present, only certain categories of crypto-asset service providers are included in the scope of EU AML/CFT rules, Finextra reports. The proposed reform will extend these rules to the entire crypto sector, obliging all service providers to conduct due diligence on their customers. Read more FT: ‘Forceful for longer’: Investors bet ECB bond buying is here to stay Investors are betting the European Central Bank’s new strategy means it will keep buying bonds for longer, driving yields in the eurozone lower. But the central bank still has its work cut out to convince markets it can hit its revised inflation targets. Christine Lagarde is aware of the challenge, and the ECB president told the Financial Times (FT) this month that the “proof of the pudding will be in the eating”. Read more (€) Bloomberg: Europe’s biggest banks warn of major flaws in ESG metric The EU Green Asset Ratio, intended to reveal how much a bank lends to climate-friendly companies and projects, will offer a distorted picture of reality, according to a Bloomberg survey of 20 major EU banks. Germany’s Commerzbank AG said the green ratios of some banks might look lower due to the specialized lending they do, or because of the regions to which they cater. Banks also voiced frustration over the EU’s decision to implement the Green Asset Ratio at the end of 2022, which is a year before the bloc is due to update wider corporate reporting requirements to include more environmental data. Read more |
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MAIN EVENTS
Thursday 22 July
Friday 23 July
For a full-year overview of key financial regulation events: click here |
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FROM THE EBF MEMBERS
Febelfin: The charter between Febelfin and the government foresees a universal banking service
The digitization of society is advancing rapidly, but not everyone is keeping pace with these developments. It is, therefore, necessary to pay special attention to the group of less or non-digital people. This is why the banking sector and the Belgium government have signed a Charter that defines the principles and modalities of universal banking service, Febelfin writes. The Charter came into force on July 19 and will apply for a period of three years to offer a solution so that everyone can easily pay and manage their money. Read more (FR)
BdB: Krautscheid on EU Commission's new money laundering regulations
Andreas Krautscheid, Chief Executive of the Association of German Banks (Bdb) states that the proposed harmonization of EU rules and the creation of an EU anti-money laundering authority are key factors in the EU-wide fight against money laundering and terrorist financing as well as in further advancing the European single financial market. "Duplication of responsibilities with European or national supervisory authorities must be avoided. The exchange between the obligated companies and the authorities about money laundering issues is also insufficiently clarified”, Krautscheid continues. Read more (DE)
FBF: Towards the establishment of conventional banking mediation for professional clients
French banks are keen to support their customers, especially SMEs, with a personalized approach across the country. Starting from the study by the Observatoire du financement aux entreprises (OFE) on the access of SMEs to banking services, the banking profession has studied the possibility of opening banking mediation to individuals acting for professional needs. The resulting recommendation by the French Banking Federation (FBF) describes the conditions for the implementation of this system by the banks: scope, categories of eligible disputes, methods of implementation. Read more (FR)
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FROM THE INSTITUTIONS
European Commission: Beating financial crime: anti-money laundering and countering the financing of terrorism rules
The European Commission presented an ambitious package of legislative proposals to strengthen the EU's anti-money laundering and countering terrorism financing (AML/CFT) rules. The package also includes the proposal for the creation of a new EU authority to fight money laundering. The aim of this package is to improve the detection of suspicious transactions and activities, and to close loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system. Read more
EBA: Extensive use of central bank facilities drove asset encumbrance ratios up
The European Banking Authority (EBA) published its annual report on Asset Encumbrance. As COVID-19 spread across Europe, banks made extensive use of central bank facilities to strengthen their liquidity buffers and maintain the flow of credit to the real economy. This resulted in the largest yearly rise in the asset encumbrance ratio since data is available. Read more
ESMA: Areas for improvement in compliance with MIFID II suitability requirements
The European Securities and Markets Authority (ESMA) published the results of the 2020 Common Supervisory Action (CSA) on MiFID II suitability requirements. The 2020 CSA has shown that firms comply with key elements of the suitability requirements, but areas of improvement have also emerged. Shortcomings mainly refer to some of the new requirements introduced by MiFID II, notably the requirement to consider the cost and complexity of equivalent products, the costs and benefits of switching investments and suitability reports. Read more |
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FROM THE EUROPEAN BANKING FEDERATION
EBF supports EU’s latest efforts in fight against financial crime
EBF expressed support for the objectives of the European Commission’s Anti-Money Laundering and Countering the Financing of Terrorism Package which aims to strengthen the fight against financial crime in Europe. The banking industry representative also emphasised the need for some specifications to be laid down to ensure that the new EU AML Authority plays a useful role in preserving the integrity of the European Union’s financial system and the security of its citizens. Read more
Assessment of SMEs’ Post-COVID Financial Health:
Joint call for dialogue
EBF has partnered with ten European associations representing SMEs, accountants, financial and guarantee institutions and other key actors in the SME ecosystem in a joint statement calling for dialogue on the assessment of SMEs’ post-COVID financial health at the EU and national levels. We will organise pan-European discussions involving our sectors and the relevant public authorities to ensure a common understanding of the challenges and solutions, and support potential initiatives by our national members to organise cross-sectoral national meetings, reflecting country specificities and needs. Read more
Targets for addressing the four challenges of cross-border payments consultation: European Banking Associations response
EBF together with other banking sector associations has responded to the Financial Stability Board’s consultation on Targets for Addressing the Four Challenges of Cross-Border Payments. Overall, we appreciate the initiative for global action. However, we believe that such a complex overhaul of the global payments system requires a thorough analysis as well as an analysis of the whole system, in order to define a target date. Right now, the targets are a strong challenge for all parties involved, and some adjustments to the proposed targets are needed. 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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