EBF MORNING BRIEF               Tuesday 5 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


POLITICO: European banks debate rival to US payment giants

Politico report that a coalition of European banks will decide whether to put together a payments product that rivals Mastercard and Visa. There is strong desire to expand EU sovereignty in this area and break US dominance, with EU data laws in mind, Politico note. Deutsche Bank, Commerzbank, BNP Paribas, ING, Santander, UniCredit and BBVA are among 22 backers of an effort, dubbed the European Payments Initiative (EPI), that’s seeking to move the EU’s cross-border payments industry beyond the influence of Washington. Read more


Bloomberg: Banks start dropping clients to dodge costs tied to ESG risk

According to Bloomberg, European banks are beginning to drop clients that pose a climate risk rather than face the possibility of higher capital requirements. Banks are raising prices, denying loan requests, “de-selecting industries and in some cases clients,” said Jacob Gyntelberg, director of the economic and risk analysis department at the European Banking Authority (EBA). Read more


CoinDesk: CBDC impact on banking could be manageable: BIS report

Three new reports by a Bank for International Settlements (BIS) working group analyze policy options and practical implementation issues of a retail CBDC. All reports were compiled by a working group of seven central banks (The Bank of Canada, the Bank of England, the Bank of Japan, the ECB, the Fed, Sweden’s Sveriges Riksbank, the Swiss National Bank) and the BIS. Read more

MAIN EVENTS


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FROM THE EBF MEMBERS


NVB: Basel IV rules for banks also have an impact on the customers

Rules for banks are established at an international level. That is what the Basel Committee on Banking Supervision does. Since the financial crisis, the rules on the amount of capital that banks must hold for the risks they run have been tightened drastically. The Basel IV reform will have a major impact on Dutch and European banks. In the long run, there will probably also be an impact for the customer, foresees Onno Steins, a senior adviser at the Dutch Banking Association (NVB). Read more (NL)


AEB: Your finances, your future

Since 2014, the Foundation of the Spanish Banking Association (AEB) and the Junior Achievement Foundation have developed the program 'Your Finances, your future' to impart basic financial, cybersecurity, and sustainability knowledge in schools. In the development of the program, the volunteers employed by the banks work hand in hand with the teaching staff. "Financial education is one of the best tools that we can transmit to young people so that they are capable of making good decisions for individuals and for society as a whole", José Luis Martínez Campuzano, spokesperson for AEB said. Read more (ES)


UK Finance: Local digital currencies 

The British government’s 'Build Back Better' agenda stresses not only the need for sustainable development to instill resilience into local economies but also the role of digitalization as driver of recovery. According to UK Finance, one way this can be achieved is by adopting a digital currency in local economies, namely geographically limited "Stablecoins” designed to serve specific areas or regions. Read more

FROM THE INSTITUTIONS

 

European Commission: Banking on the future: keynote address at the European Banking Summit 2021

The European Commission has published Commissioner McGuiness’ speech to European Banking Summit 2021. In her keynote speech, she emphasized that banks have remained robust despite the economic challenges, and she highlighted the need for a completed Capital Markets Union and Banking Union. On Basel III, she stressed that the European Commission’s proposal will meet the EU's international commitments to address remaining flaws in the prudential framework without leading to a significant increase in overall capital requirements. Read more


ECB: Banks' risk-taking within a banking union

This paper published by the European Central Bank (ECB) studies the relationship between banks’ size and risk-taking in the context of supranational banking supervision. Consistently with theoretical work on banking unions and in contrast to analyses emphasizing incentives underpinned by the too-big-to-fail effect, results find an inverse relationship between banks’ size and non-performing loan growth for a sample of European banks. Read more


European Parliament: ECB monetary policy: Strategic review

The European Parliament has published a briefing on the European Central Bank’s Strategic Review. According to the review, the revised monetary policy strategy brings the ECB's overall strategic orientation closer to its central bank peers, shifting away from curbing high inflation towards ensuring it does not dip too low, while also building climate considerations into the policy framework. Read more

FROM THE EBF


Proposal for a regulation laying down harmonised rules on AI act: EBF response

The European Banking Federation (EBF) welcomes the opportunity to comment on the European Commission’s proposal for a Regulation laying down harmonized rules on Artificial Intelligence (AI Act). The Act aims to develop an ecosystem of trust for AI in the EU, which encourages investment, aims to strengthen competitiveness, and ensures that AI systems respect fundamental rights and EU values. It is essential for these rules to strike a balance between regulating high-risk AI use cases and supporting innovation, including proportionate requirements, no unjustified barriers or restrictions, and no duplication. Read more


ESMA consultation on RTS 1 & 2 under MiFIR: EBF high-level comments

The EBF would like to thank ESMA for the opportunity to comment on the proposed changes on RTS 1 & 2 under MIFIR. The EBF would like to share some concerns regarding this consultation on the following: mandate, timing, alignment between MAR and transparency requirements under MIFIR, and streamlining. 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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