EBF MORNING BRIEF Tuesday 13 October 2020 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: collapse of global tax talks could cost $100 billion, OECD says The global economy could shed more than 1% of output if international talks to rewrite cross-border tax rules break down and trigger a trade war, the OECD said on Monday, after countries agreed to keep up negotiating to mid-2021, Reuters reports. Nearly 140 countries agreed on Friday to extend talks, after the pandemic outbreak and U.S. hesitation before the presidential election squashed hopes of reaching a deal this year. Read more
Forbes: The Path Forward For European Investment Banking
The return on equity for the top 9 global investment banks in 2019 was 10.1%, but absent the top five American banks, that figure plummets to 2.4% RoE. There is not a single full-service investment bank in Asia or Europe that generates real economic profit, writes Forbes. Their cost bases are too high and their ability to successfully service multiple business lines – which requires technology differentiation and high capital levels – is questionable. Read more
Bloomberg: Stanford Economists Win Nobel Prize for Research on Auctions
Two Stanford University academics who helped design the U.S. auction that allocates mobile-phone frequencies will share the 2020 Nobel Prize in economics, Bloomberg reports. Paul Milgrom and Robert B. Wilson, who won’t be traveling to Stockholm to receive the award due to the Covid-19 crisis, have had their ideas applied to sales of everything from aircraft landing slots to fishing quotas. Their theories are even evolving to encompass renewable energy markets. Read more FT: BoE asks banks how ready they are for negative rates The Financial Times writes that the Bank of England has begun a fact-finding mission to see whether banks could cope if the central bank wanted to introduce negative interest rates to support the UK economy. On Monday the BoE wrote to banks it regulates asking them about their readiness to deal with a zero or negative bank rate. Read more (€) Guardian |
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MAIN EVENTS today EFRAG General Assembly virtual meeting Financial Future Workshop “The Banking Union” – EBF head of Prudential Banking & Supervision Gonzalo Gasos speaking EBF Brexit Task Force virtual meeting For more events check the EBF planning calendar HERE
*All events take place in Brussels unless stated otherwise |
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COMING UP TODAY AND TOMORROW: UNEP FI Global Roundtable FINANCING A RESILIENT FUTURE Virtual event, 13-14 October, 14.00 CEST
UN Environment Programme Finance Initiative (UNEP FI) is hosting its 16th Global Roundtable virtually on 13–14 October 2020, in collaboration with Responsible Investor. UNEP FI’s biennial Global Roundtable (GRT) is a major global agenda-setting event on sustainable finance. Held under the theme of “Financing a Resilient Future”, the GRT will bring together decision-makers, experts and thought leaders on a virtual event platform, and help shape approaches to integrating environmental, social and governance (ESG) issues and accelerating sustainable banking, insurance and investment. To find out more and register please visit: unepfi.org/grt2020 |
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FROM THE EBF MEMBERS
UK Finance: Making life easier for merchants
UK Finance’s 2020 Fraud Report highlighted that remote purchase fraud, also known as card-not-present (CNP) fraud was the most common form of payment card fraud in the UK. A remote purchase transaction is made where the cardholder is not there in person and this type of fraud occurs when a criminal uses stolen card details to buy something on the internet, over the phone or through mail order. It was responsible for losses of over £470 million in 2019 alone of which over £359 million was e-commerce. Read more
SBA: New investment tax threatens recovery The government and its support parties ignore the fact that another tax on banks' operations and customers is hitting Sweden's jobs, entrepreneurship, investments and competitiveness hard, writes the Swedish Banking Association's (SBA) CEO Hans Lindberg in the Swedish newspaper Digest Industri. Read more (SE)
Finance Denmark: New special tax is bad news for Danes
The government, the Socialist People's Party, the Unity List and the Danish People's Party have entered into an agreement on the right to early retirement. The agreement is financed, among other things, by introducing a special tax on the financial sector. It is an unsustainable financing solution, warns Finance Denmark. Read more (DK)
NVB: Digital with people at the centre: bank & politics in conversation
Banks support Dutch Minister Hoekstra's recent Fintech action plan and also the European Digital Finance Strategy. But in this rapidly changing context, how can banks and government together ensure that the Netherlands remains a leader in accessible (digital) financial services? This was the subject of an online discussion between the Dutch Banking Association (NVB) and members of the Lower House Finance Committee. Read more (NL) |
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FROM THE INSTITUTIONS
ECB: Complementary but independent
There are strong complementarities between fiscal and monetary policy in a low interest rate environment, says Executive Board member Isabel Schnabel at the Interparliamentary Conference on Stability, Economic Coordination and Governance in the European Union. Using fiscal and structural policies more actively now will support price stability and foster central bank independence. Read more ESA dismisses case against ESMA on alleged non-application of EU law The Joint Board of Appeal of the European Supervisory Authorities (ESAs – European Banking Authority, European Insurance and Occupational Pensions Authority, and European Securities and Markets Authority) published its decision in the appeal case brought by Mr Howerton against the European Securities and Markets Authority (ESMA). The Board of Appeal’s decision considered as inadmissible the Appellant’s claim that six national financial supervisory authorities and ESMA should have taken supervisory steps in relation to an alleged non-application of Union law. Read more EBA: Creditworthiness assessment for consumer credit across the EU The European Banking Authority (EBA) responded last week to the EU Commission’s consultation on the proposed new consumer agenda where it called for harmonisation of the creditworthiness assessment process for consumer lending across the EU. The EBA response focuses on the revision of the Consumer Credit Directive (CCD) and builds on the recent EBA Guidelines on loan origination and monitoring. Read more OECD: Tax Report to G20 Finance Ministers & Central Bank Governors OECD has updated the OECD Secretary-General Tax Report to G20 Finance Ministers and Central Bank Governors. In addition to an update on the progress made addressing the tax challenges arising from the digitalisation of the economy, the report provides the latest progress on other G20 deliverables: notably on tax transparency with the 2019 AEOI figures, implementation of the BEPS standards & capacity building for developing countries. Read more
BIS: Stress-testing banks during the Covid-19 pandemic
In response to the Covid-19 pandemic, a number of authorities that regularly conduct stress tests on individual banks adjusted their approach. They performed ad hoc exercises to assess the vulnerability of banking sectors as a whole. These exercises are different from regular ones in terms of key features such as objectives, design and methodologies, and communication, writes Patrizia Baudino, Senior Adviser at the Bank for International Settlements (BIS). Read more |
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Join and register for free
CYBERSECURITY & RESILIENCE:
THE BASIS OF IT ALL IN DIGITAL INNOVATION ONLINE webinar, Thursday 22 October, 15:30 CEST
Tune in and listen to Pentti Hakkarainen, ECB representative, Member of the Supervisory Board, speaking at 'Cybersecurity & Resilience: the basis of it all in digital innovation', our webinar taking place on 22 October at 15:30
Do not forget to register: http://ebf.eu/events/cyber-security-resilience/ |
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The European Banking Federation and fTLD Registry Services (fTLD) are partnering to educate the European banking sector about the cybersecurity role .BANK plays in protecting banks against Business Email Compromise (BEC) scams, phishing and spoofing attacks that lead to breaches, identity theft and financial fraud. fTLD administers the .BANK domain and the EBF has served on its Advisory Council since 2013. To learn more about the security benefits of .BANK, visit https://www.register.bank/ebf/ or contact fTLD at EBF@fTLD.com. |
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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. The EBF 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. |
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