| EBF MORNING BRIEF Thursday 7 October 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
Reuters: Euro zone banks continue to reduce soured credit
Euro zone banks continued to record a decline in soured loans in the second quarter, Reuters reports. Non-performing loans (NPLs) at the bloc’s 114 biggest banks dropped to 422 billion euros from 455 billion three months earlier and the ratio of bad debt fell to 2.32% from 2.54%. However, the underlying performance of the corporate sector has been weakened and the ECB has already warned banks that once government measures are removed, some borrowers are bound to face payment difficulties. Read more
Bloomberg: Macron backs Villeroy for second ECB term
According to Bloomberg, French President Emmanuel Macron nominated Bank of France Governor Francois Villeroy de Galhau for a second term, opting for stability in one of the most important appointment decisions on European Central Bank (ECB) policy making for years to come. The appointment of Villeroy for another six-year term is subject to hearings at the National Assembly and Senate finance committees. Read more
Finextra: BIS issues Facebook stablecoin warning
The rise of Big Tech and its incursions into payments through projects such as Facebook's Diem stablecoin, could concentrate market power and threaten financial stability, challenge bank business models, and fragment the monetary system, warns Bank for International Settlements (BIS) General Manager Agustín Carstens. As reported by Finextra, Carstens said that a regulatory response to these concerns could involve using competition policy, data governance and imposing financial stability requirements. Read more |
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MAIN EVENTS
Thursday 7 October
Friday 8 October
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ACAMS 'The EU's AML Action Plan – Are You Ready?' webinar. EBF Chief Policy Officer Sebastien De Brouwer -
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EBF Exco Financial Crime Strategy Group meeting -
EBF meeting on Banking Package -
EFRAG Board meeting
For a full-year overview of key financial regulation events: click here
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REPLAYS AVAILABLE!
European Banking Summit 2021:
BANKING ON THE FUTURE
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 | The fifth European Banking Summit dedicated to 'Banking on the future' brought together 450 experts, senior policymakers, and key stakeholders to discuss the future of the banking industry and the role of banks in society. Topics included regulation, the green transition, and digital transformation, with panels taking deep dives into the detail.
Have you miss it? The replays of the event are now available. Watch NOW |
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FROM THE EBF MEMBERS
Finance Norway: Five requirements for the state budget
On Tuesday 12 October, the government will present its proposal for the state budget for 2022. Finance Norway expects this to prioritize growth-promoting measures that contribute to new jobs and green competitiveness in the Norwegian economy. In addition, the budget should further develop public-private digital collaboration and increase efforts in the fight against cybercrime. Read more (NO)
UK Finance: Decision-making success in a post-pandemic world
Over the past 18 months, the banking industry has shown its resilience in the face of the pandemic. UK Finance has examined three key considerations for the banking industry moving forward. Notably, a shift towards strategic decision-making is key along with a focus on transparency. Cloud-based technology platforms will be the key to success for banks in the years ahead, UK Finance adds. Read more
Finance Finland: Already 1.2 million Finns invest in funds
Fund saving is more popular than ever and the most popular of all forms of investment. 1.2 million Finns invest in funds, and 37 per cent of them are lower-ranking employees or the working population. This is evident from Finance Finland's recent Savings, Credit Use and Payment Methods study. Read more (FI) |
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FROM THE INSTITUTIONS
EBA Risk Dashboard points to stabilizing return on equity in EU Banks but challenges remain for those banks with exposures to the sectors most affected by the pandemic
The European Banking Authority (EBA) published today its Risk Dashboard for the second quarter (Q2) of 2021. The data indicate that banks are benefitting from the economic recovery with RoE remaining broadly similar to the previous quarter. Capital ratios remained stable and there was a further decline in NPL ratios. Operational risks remain elevated mainly due to cyber and ICT related risks. Read more
BIS: Regulating big tech in the public interest
Agustín Carstens, General Manager at Bank for International Settlements (BIS) discusses how Big Techs offer payments, credit, insurance and wealth management in every region of the world. In his speech, he addresses the scenarios for future growth and the possible public policy responses with regards to the main challenges of Big Tech in finance. The latter includes risks for financial stability, fair competition and data governance. Read more
ECB: Supervisory banking statistics for the second quarter of 2021
The European Central Bank (ECB) have published supervisory banking statistics for the second quarter of 2021. Aggregate non-performing loans ratio fell further to 2.32% (down from 2.54% in previous quarter), with stock of non-performing loans declining to €422 billion (down from €455 billion in previous quarter). Read more |
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FROM THE EBF
European Commission consultation on the functioning of the EU securitisation framework: EBF response
The European Banking Federation (EBF) has responded to the targeted consultation of the European Commission on the functioning of the EU securitisation framework. The EBF welcomes the initiative of the European Commission to comprehensively review the EU securitisation framework. For the securitisation market to develop, any legislative proposal under the European Commission’s Capital Markets Union Action Plan will need to address the prudential treatment and the reporting obligations. Particular points for attention are the capital non-neutrality, the significant risk transfer process, the liquidity treatment of securitisations, and disclosure obligations under the ESMA templates. Read more
EBA consultation on review on Guidelines for the Supervisory Review and Evaluation Process: EBF response
The European Banking Federation (EBF) has responded to the consultation of the European Banking Authority (EBA) on its review of Guidelines on common procedures and methodologies for supervisory review and evaluation process. The response comments on the inclusion of ML/TF risks in the SREP Guidelines, the recognition of Single Point of Entry (SPE) and Multiple Point of Entry (MPE) structures, the inclusion of climate risk in P2G as well as the diversification between risks and geographies. Besides, particular attention is paid to the setting of Pillar 2 Guidance, Pillar 2 requirement and Pillar 2's guidance for excessive leverage along with the principle of proportionality, temporary capital add-ons, and transparency with regard to decisions made in the context of Pillar 2. Read more
EBA consultation on credit risk adjustments in the context of risk weights: EBF response
The European Banking Federation (EBF) has responded to the consultation of the European Banking Authority (EBA) regarding the amendments to RTS on credit risk adjustments in the context of the calculation of risk weights. The EBF supports the EBA amendment, which is an important step in the implementation of the European Commission NPLs (non-performing loans) Action Plan. The amendment gives support to the secondary markets for NPLs. However, the EBF suggests some amendments to the EBA proposal, which would enhance the clarity of the proposal. Read more
EBF Vacancies: Work with us!
Visit our Vacancies page to learn more about the opening positions at the EBF. 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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