📰 EBF Morning Brief - Tuesday 5 May

FROM THE MEDIA

Q1 bank earnings: BNP Paribas, Intesa San Paolo

Profit at eurozone's largest lender BNP Paribas fell by 33.1% in the first-quarter as the coronavirus crisis hit equity trading and prompted the bank to set aside more than half a billion euros in loan provisions, says Reuters. Italy's second biggest bank by assets Intesa SanPaolo is expected to report results for the first quarter this afternoon. Reuters BNP Paribas Intesa SanPaolo

Reuters: Bank investors confused with variations in accounting rule

The world’s top banks are calculating their potential losses in different ways, with puzzling outcomes for investors, reports Reuters. The discrepancies are rooted in the interpretation of new accounting rules called IFRS9, which have been designed to promote transparency and stability by making banks account for loan losses earlier. Read more

Euractiv: Covid-19 hits adoption of stricter online payments rules

European retailers are asking for more time to adopt stricter rules to protect online shoppers, but consumer organisations say the demand is “completely unacceptable” as e-commerce fraud has increased during the coronavirus crisis, says Euractiv. The confinement measures adopted across the world to contain the spread of COVID-19 has fuelled online shopping. And with it, the volume of scams and other strategies used by criminals to steal consumers’ financial details and data. Read more

Bloomberg: ECB funding fix will likely ease costs to pre-virus levels

According to Bloomberg, the European Central Bank’s plan to pump a deluge of cash into the euro area’s banks extended the three-month Euribor easing run to the longest since January as the region’s markets returned from a long weekend. It’s a relief for borrowers, who saw the three-month Euribor rate rise 30 basis points in a little over a month despite ECB attempts to boost lending, as companies raced to cushion their coffers in the face of unexpected losses inflicted by the virus crisis. Read more

Euractiv: German state aid could boost EU economy

Germany’s decision to take full advantage of the EU’s relaxed state aid rules could be “a locomotive” for Europe but a strong recovery fund is needed to avoid distortions in the internal market, EU competition chief Margrethe Vestager told MEPs, says Euractiv. Read more Bloomberg

EBF MEMBERS IN THE NEWS

Spain: Corporate government, shield against the coronavirus

The regulatory framework surrounding the financial sector has evolved significantly since the beginning of the financial crisis in 2008, with a more than an exponential increase in the number of requirements faced by credit institutions, which has translated into higher levels of capital and liquidity. Read more (ES)

UK: Expect the unexpected: How to prepare for business continuity

Whether it is geopolitical challenges, social unrest, weather storms, major events or the current global pandemic, it is clear that disruption has become the new norm. Traditional Business Continuity Plans (BCP) are often created for major disruption and lack the flexibility needed to support the varying degrees of daily disruption. Read more

Germany: Banking industry criticizes plans for financial transaction tax

The German Banking Industry (DK) again warns against the introduction of a Financial Transaction Tax (FTT), even in the reduced form of a pure "share tax". It is an alibi project that does more harm than good. Read more

Finland: Digital education provides relief from unemployment

The availability of online training must be improved on a fast schedule so that Finns can acquire skills that support employment. The labour market organizations have published their joint proposals on what training measures Finland needs to overcome the interest rate crisis. Read more (FI)

Denmark: Private customers get help from the bank

98% of Danes have been in contact with their bank for financial assistance. This shows a new analysis from Finans Danmark based on reports from four of the largest banks. Read more (DK)

WEDNESDAY 27 MAY - ONLINE WORKING SESSION
How to use a .BANK domain for
cybersecurity defense

Join us to learn why a move to the gated .BANK domain is a bank’s best option for cybersecurity against phishing and spoofing attacks and Business Email Compromise (BEC) leading to breaches, identity theft and financial fraud. A verified .BANK domain creates trusted websites and email channels; a trust that is necessary when adding digital banking products and services for new customer acquisition and enhancing existing relationships. INFO & REGISTRATION

FROM THE INSTITUTIONS

ECB: The monetary policy response to the pandemic emergency

In an ECB Blog post, Chief Economist Philip R. Lane discusses the macroeconomic scenarios developed by ECB staff to illustrate the possible impact of the pandemic. He also explains the current monetary policy and outlines the approach to setting the future course of monetary policy. Read more

EBA: Technical standards on reporting requirements for market risk

The European Banking Authority (EBA) published its final draft Implementing Technical Standards (ITS) on specific reporting requirements for market risk. Read more

ESRB: The making of a cyber crash

The ESRB has published a report entitled “The making of a cyber crash: a conceptual model for systemic risk in the financial sector.” Read more

BIS: Stocktake report on climate-related financial risk initiatives

The Basel Committee has published a stocktake report on climate-related financial risk initiatives. This is the first report by the high-level Task Force on Climate-related Financial Risks. Read more

FSB consults on the adequacy of financial resources for CCP resolution

The Financial Stability Board (FSB) published a public consultation report on Guidance on financial resources to support CCP resolution and on the treatment of CCP equity in resolution. Read more

WHO and EIB strengthen efforts to combat Covid-19

The World Health Organization and the European Investment Bank announced that they will boost cooperation to strengthen public health, supply of essential equipment, training and hygiene investment in countries most vulnerable to the Covid-19 pandemic. Read more

EBF Blueprint for an Anti-Money Laundering Policy
Lifting the Spell of Dirty Money

Based on four priorities, Harmonise, Cooperate, Empower and Be Smarter. the European Banking Federation has formulated 20 concrete policy recommendations that are elaborated in the 40-page EBF blueprint ‘Lifting the Spell of Dirty Money’. The EBF presented its recommendations on on 10 March. Full AML Blueprint

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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European Banking Federation