EBF MORNING BRIEF Tuesday 1 June 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: Banks' stress test results will show need for action
The results of a banking health check the European Central Bank will publish this summer will sound a wake-up call for lenders to take action even if they are unlikely to hold any surprises, ECB governing council member Ignazio Visco said. In an interview with Reuters on Monday, Visco said supervisors were engaged in a constant dialogue with the banks they oversee, and know their situation in detail. Read more
Bloomberg: Crypto assets a great concern, says Irelandâs Central Bank enforcer
The rising popularity of cryptocurrencies is of great concern as âcrypto assets are quite a speculative, unregulated investment", Derville Rowland, one of the top officials at Irelandâs Central Bank says. Besides, attention is also focused on the so-called âgamificationâ of stock investing, which Rowland expects to become an issue for Europe soon. "While thereâs not yet a timeline for any new rules, regulations need to be technology neutral", she said, âso that youâre not getting better protections in older paper based processes then you are in more online processesâ, Bloomberg reports. Read more
BBVA: Carlos Torres Vila: "Banks are moving fast to tackle climate change"
Carlos Torres Vila, BBVA Chairman, discussed with Andrea Enria, Chair of the European Central Bank (ECB)âs Supervisory Board, the role of the financial sector, its corporate governance, digital disruption, and climate change. He explained that climate change and decarbonization represent not only a risk but also an enormous opportunity for both the economy and for banks. Firstly, because of the investments involved, and secondly, because of the importance of advising customers on their ecological transition. Read more |
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MAIN EVENTS IBFed Consumer Affairs Working Group virtual meeting EBF Sectoral Social Dialogue Committee for Banking Working group virtual meeting EBF Chief Risk Officers virtual meeting For a full-year overview of key financial regulation events: click here |
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EBF Digital Thursdays Close-up: A Digital Euro ONLINE / Thursday, 24 June at 13:30 CEST
Central banks around the world are investigating Central Bank Digital Currencies as a response to the emergence of private stablecoin projects and to meet the needs of an increasingly digitalized economy. In Europe, the ECB is expected to announce soon the continuation of its investigation into a digital euro following a public consultation phase. Join our high-level speakers discussing what a digital euro could look like, what could be its features, how it could be best designed and what role banks could play in this design phase and a digital euro ecosystem. Register HERE |
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FROM THE EBF MEMBERS
Finance Latvia: Latvia's banking sector success
Following the best international practice, the Latvian financial sector has proven to be a safe place for investors. The information gathered by the Finance Latvia Association shows that compliance with the highest international standards has been strengthened, comprehensive cooperation mechanisms have been established, opt-out from unmanageable risks have been reached as well as effective internal control systems and good risk management have been put in place. Based on these solid foundations sector will continue to keep up with current trends and provide safe, modern, and sustainable services. Read more
NVB: Do investors care about impact?
Behavioral finance scientist Stefan Zeisberger studied how investorsâ willingness to pay for sustainable investment products responds to the impact of these products. "A sustainable investment, independent of its actual impact, seems to give investors a warm glow", and, "consumers pay for an investment that feels green. Not for a truly greener oneâ, he says. The Dutch Banking Association (NVB) investigates how alarming are these outcomes in the light of the Sustainable Finance Disclosure Directive (SFDR), MiFID II changes, and the EU Ecolabel regime, while asking about Zeisbergerâs advice for banks offering and promoting sustainable products whilst avoiding greenwashing. Read more SBA: The summer session of the Federal Parliament starts On Monday 31 May, the summer session 2021 of the Federal Chambers started. During the session, the Federal Assembly regularly discusses a wide range of issues relating to the financial center. From the Swiss Banking Association's (SBA) perspective, the focus will be on the provisions of the Federal Withholding Tax Act concerning the exemption of interest income from "too big to fail" instruments, draft 1 of the parliamentary initiative "Abolish stamp duty in stages and create jobs" and the revision of the Collective Investment Schemes Act. Read more (FR) |
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FROM THE INSTITUTIONS
ECB: Monetary developments in the euro area: April 2021
The annual growth rate of the broad monetary aggregate M3 decreased to 9.2% in April 2021 from 10.0% in March, averaging 10.5% in the three months up to April. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, decreased to 12.3% in April from 13.6% in March. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 0.3% in April from 0.9% in March. The annual growth rate of marketable instruments (M3-M2) increased to 10.6% in April from 7.0% in March. Read more SRB: Addendum to the approach in the Public Interest Assessment The Single Resolution Board (SRB) has published a revised approach to the Public Interest Assessment policy (PIA) in resolution planning. The updated approach takes into account that a bankâs failure may take place not only under an idiosyncratic scenario but also under broader financial instability or a system-wide event. This consideration strengthens the choice of the best resolution strategy in order to protect the European taxpayer and promote financial stability in the EU. Read more
EBA and ESMA publish provisional list of instruments and funds for the smallest investment firms under the Investment Firms Regulation
The European Banking Authority (EBA), jointly with the European Securities and Markets Authority (ESMA) have published a provisional list of additional instruments and funds that competent authorities may allow to use as own funds for some of the smallest investment firms. The latter include only non-legal persons or jointâstock companies, or those which meet the conditions for qualifying as small and nonâinterconnected investment firms as defined in the Investment Firm Regulation (IFR). The list is provisional and intended to provide guidance to investment firms and competent authorities ahead of the application of the IFR requirements, as of 26 June 2021. Read more |
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FROM THE EUROPEAN BANKING FEDERATION
EBF calls for next steps to strengthen economic recovery in Europe: EBF Board Communiqué
The Board of the European Banking Federation (EBF) reiterated that European banks stand ready to continue supporting businesses and households amid growing uncertainty over the pace of the economic recovery. The EBF board also highlighted the need to evolve the policy response to ensure a âsoft landingâ to the new normal and expressed confidence in governmentsâ commitment to avoiding a âcliff-edgeâ effect. Read more
EBF & S&P Global Market Intelligence: Managing Credit Risk during the COVID-19 Crisis & Recovery Phase in Europe
Over the past year, the European banking industry has been hit by volatile markets, worsening economic conditions and business continuity challenges. Highlights from the EBF and S&P Market Intelligence webinar on the impact across the banking landscape and how default assessment plays a pivotal role in the recovery are now available. Speakers' presentations and full webinar available HERE |
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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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