| EBF MORNING BRIEF Tuesday 12 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
FT: Brussels eyes new rules to tighten grip on branches of non-EU banks
The Financial Times (FT) reports that the European Commission is preparing a sweeping overhaul of the regime that allows foreign banks to use lightly regulated branches to operate across the EU, in a move that could push up costs for the industry. The Commission is looking to grant powers to regulators that would allow them to force such branches into subsidiaries if deemed large and risky. The proposal is expected to go online on 27 October. Read more
Bloomberg: ECB’s Knot urges investors to take inflation risks seriously
Investors must be careful not to underestimate inflation risks that could prompt the European Central Bank (ECB) to tighten monetary policy, according to Governing Council member Klaas Knot. “A too abrupt tightening of financial conditions can lead to risks to financial stability and indirectly have a negative impact on the objective of price stability,” according to the Dutch central bank. However, keeping financial conditions accommodative risks negative side effects as a result of investors’ search for yield, Bloomberg wrote. Read more
Reuters: EU hires banks for debut green bond sale-lead managers
The European Union hired banks to sell its first ever green bond, memos from two lead managers seen by Reuters showed, taking its first step towards becoming a major force in the environmentally friendly debt market. The 15-year green bond, due February 2037, will raise 12 billion euros ($13.87 billion), the memos said, making it the largest green bond launch in the government bond market to date. Read more |
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MAIN EVENTS -
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EBF Blockchain Task Force virtual meeting -
EBF Hedge Accounting Working Group virtual meeting
For a full-year overview of key financial regulation events: click here
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REGISTRATION IS NOW OPEN! EBF DIGITAL THURSDAYS 2021
28 October, 4 November, 18 November / ONLINE
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 | The EBF Digital Thursdays 2021 will bring together industry experts, policymakers, and supervisors to explore the key developments in digital finance, driven by regulatory initiatives and industry priorities. Topics will include digital operational resilience, cybersecurity, access to data and infrastructure, open finance and Central Bank Digital Currencies. |
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FROM THE EBF MEMBERS
Finance Finland: European green bond standard
The European Commission has proposed a European green bond standard. The Finnish financial sector supports the idea while stressing that changes in taxonomy definitions must not affect the green label of previously issued bonds. “The proposal is good and reasonable. Aligning the standard with the EU taxonomy for sustainable activities will ensure uniformity and also distinguish the bonds from the other green bonds in the market”, says Elina Kamppi, Head of sustainability at Finance Finland. Read more
AEB: We will achieve it together
The European recovery plan is key for Spain, by facilitating the transition to a greener and more digital economy, with special emphasis on SMEs. "Banks offer their collaboration to the authorities, since they can contribute to promoting the recovery with their capillarity and proximity to the client, anticipating funds and co-financing and promoting projects in areas in which they have knowledge and experience", José Luis Martínez Campuzano, spokesperson for Spanish Banking Association (AEB) says. Read more (ES)
CBA: Economic commentary: Inflation accelerated further to 4.9%
Inflation accelerated further in September from 4.1% in August to 4.9%. This is what emerges from the economic commentary published by the Czech Banking Association (CBA). Acceleration of prices was mainly due to housing-related prices, this category will push inflation higher in the next period due to expected growth in energy prices, especially electricity and gas for households. Read more (CZ) |
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FROM THE INSTITUTIONS
ECB: The monetary policy toolbox
Inflation needs to reach 2% well ahead of the end of our projection horizon and durably for the rest of it, says European Central Bank (ECB) Chief Economist Philip R. Lane at ECB Conference on Monetary Policy. Interest rate policy should not react to inflation shocks expected to fade away. Read more
OECD: International community strikes a ground-breaking tax deal for the digital age
Major reform of the international tax system will ensure that Multinational Enterprises (MNEs) will be subject to a minimum 15% tax rate from 2023. The Organisation for Economic Co-operation and Development (OECD) announced 136 countries have agreed a to a global taxation agreement, including Ireland, Estonia and Hungary. It is now supported by all OECD and G20 countries. Read more
FSB Chair updates the G20
The Financial Stability Board (FSB) published a letter from Randal K. Quarles, FSB Chair to G20 Finance Ministers and Central Bank Governors ahead of their meeting on 13 October. The letter focuses on two key areas of the FSB’s work, namely developing a more resilient non-bank financial intermediation (NBFI) sector and addressing challenges in cross-border payments. 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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