📝EBF Morning Brief - Thursday 6 April 2023: ECB officials rally behind call that rate hikes will soon end

EBF MORNING BRIEF Thursday 6 April 2023

THE EBF MORNING BRIEF IS TAKING AN EASTER BREAK!

We will be back on Wednesday 12th of April!

Looking forward to seeing you soon for new events and stories in the financial and banking sector.

FROM THE MEDIA

Bloomberg: ECB officials rally behind call that rate hikes will soon end

According to Bloomberg, a growing chorus of European Central Bank (ECB) officials predicts that interest rate increases will soon come to an end, signaling a new found consensus after tensions began to bubble up at their last policy meeting. The Governor of the Bank of France, François Villeroy de Galhau, kicked things off saying the ECB has completed most of the monetary tightening needed to get inflation back under control. Since then, his Governing Council colleagues from Greece, Lithuania and Croatia have sung a similar tune. Read more

S&P Global Market Intelligence: Credit Suisse turmoil poses bank run challenge for European regulators

The collapse of Silicon Valley Bank and the emergency takeover of Credit Suisse Group AG by UBS Group AG will force European banking authorities to develop more effective measures to prevent and stop digitally driven bank runs, S&P Global Market Intelligence shows. Greater scrutiny of lenders' deposits and more thorough analysis of the risks posed by the interconnectedness of the global banking system are also likely to be among the areas addressed as regulators and supervisors respond to the dangers highlighted by the recent turmoil in the sector. Read more

Reuters: Europe's banks ramp up bespoke loan trades to reduce risk

As reported by Reuters, European banks are increasingly turning to bespoke deals with investors such as hedge funds to offload some of the risk on multi-billion euro loan portfolios and improve their financial strength. Banks supervised by the European Central Bank (ECB), the biggest ones in the euro zone, completed a record 174 billion euros ($189 billion) of such deals last year. Read more

MAIN EVENTS

Thursday 6 April

FIC cybersecurity forum

Friday 7 April

FIC cybersecurity forum

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

FROM EBF MEMBERS

BdB: ChatGPT, how useful is generative artificial intelligence for banks?

ChatGPT is the topic of the moment. The versatile new abilities of this chatbot fire the imagination, but also fuel concerns about the future application of such a simple and widely usable artificial intelligence in schools, the world of work and science. The Association of German Banks (BdB) discusses what effects the latest surge in development in the field of generative artificial intelligence (AI) could have on the banking world and how and where can banks and their customers benefit from this. Read more(DE)

Febelfin: The budgetary decision on the DGS contributions undermines the competitiveness of Belgian banks

Febelfin reported the disappointment of the banking sector as regards the government's decision to further increase the deposit guarantee contribution, which Belgian banks pay annually, to an unprecedented level of 1.8% of covered deposits. The percentage of 1.8% of covered deposits must be reached by 3 July 2025. Although the DGS reform has some merits, such as setting an upper limit to be reached, this upper limit of 1.8% is unprecedented in Europe. This measure is a budget measure and undermines the European and international competitive position of the Belgian banks and the role they play in supporting our economy. Read more(NL)

ABBL: Financial education in Luxembourg

The results of the Luxembourg Bankers' Association (ABBL) Foundation/CSSF survey conducted by ILRES in December 2022 showed that in the country residents under the age of 30 have a very low level of knowledge about personal finances. In terms of attitudes towards money, the under-30s are so casual about their budget that they rank 25th out of 26 European countries in terms of attitudes towards their personal finances. The risk of financial vulnerability and over-indebtedness is therefore real for this generation. Read more

FROM THE INSTITUTIONS

ECB: Mind the gap: we need better oversight of crypto activities

Elizabeth McCaul, Member of the Supervisory Board of the European Central Bank(ECB) spoke about the need to identify and close gaps in the global supervision of crypto markets and the need of a better international coordination and stronger consolidated oversight. The current events underscore the crucial role that sound regulation and effective supervision play in maintaining financial stability. Read more

EBA: Call for papers for its 2023 Policy Research Workshop

The European Banking Authority (EBA) launched a call for papers in view of its 12th Policy Research Workshop taking place on 7-8 November 2023 and titled “Interest rate and Liquidity Risk Management, Regulation and the Macro-economic environment”. The deadline for submitting papers is 7 July 2023. Read more

EIOPA: Monthly update of the symmetric adjustment of the equity capital charge for Solvency II

The European Insurance and Occupational Pensions Authority (EIOPA) published the technical information on the symmetric adjustment of the equity capital charge for Solvency II with reference to the end of March 2023. Read more

FROM THE EBF

EBF: Views on Open Finance: towards a fit-for-market approach

To meet real customer needs, boost innovation, and ensure a level playing field, the upcoming Open Finance proposal of the Commission should adopt a market-led approach. The latest EBF Paper calls for voluntary data sharing, supported by a flexible framework of key principles for all market participants, including incentives for data sharing and strong security and consumer protection provisions, including on liability. 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

European Banking Federation