FROM THE MEDIA

Reuters: EU banks shouldn't pay dividends this year, watchdog says

Banks in the European Union shouldn’t be allowed to pay dividends, bonuses, or buy back shares at least until the end of this year, the European Systemic Risk Board (ESRB) said according to Reuters. The ESRB’s recommendation, if followed by the ECB, would extend a eurozone ban on such payouts by three months, or potentially longer, to help banks build up a buffer and withstand the worst economic slump in living memory. The EBF in March acknowledged the initial ECB recommendation on retaining dividend distributions until October. It allowed some 30 billion euro in high quality capital to be retained within the system. Read more Bloomberg

Bloomberg: ECB is ready to help solve German court problem

European Central Bank President Christine Lagarde signaled her institution is willing to play a more active role in responding to a critical ruling by Germany’s constitutional court over its monetary policy, reoprts Bloomberg. Speaking to lawmakers in the European Parliament on Monday, Lagarde said the ECB “will provide any support and assistance that can be helpful” in addressing charges that bond purchases conducted since 2015 to lift inflation might have disproportionate side effects. Read more
 

Euractiv: ECB calls for quick adoption of recovery funds

European Central Bank President Christine Lagarde called on member states to urgently adopt the EU recovery plan, saying any delay could create “negative spillovers” in the markets and increase the costs of overcoming the recession, writes Euractiv. Read more

Law360: Carbon tax for EU economic recovery could be tough sell

The economic fallout from the coronavirus pandemic could prompt European Union countries to expand environmental taxation to help rebuild government coffers, but those measures also could trigger a backlash from a public that is already struggling financially, writes Law360. Read more 
 

Bloomberg: ECB seeks to identify polluters in push for green finance

The European Union should identify companies that harm the environment so that banks and asset managers can better handle the risks stemming from climate change, according to the European Central Bank. Read more

FROM THE EBF

Cyber incident reporting – EBF position (Updated version)

EBF updated its position paper on cyber incident reporting by including a new annex describing the Danish Joint Solution for reports on IT Security Events (FLIIS), a successful example of centralised reporting scheme. The establishment of a centralised hub, aimed at collecting from financial institutions all reports covering incidents and submitting them to the competent authorities, should be considered as the preferred model for reporting of cyber incidents. By fulfilling the above functions, the centralised hub would not only channel and coordinate the submission of reports more quickly and efficiently but also indirectly facilitate the monitoring of cyber risks and trends at the national level. Read more

FINANCE FINLAND WEBINAR
 

ESG data – the capital in the sustainable transition 

11 June 2020, 10-11.45 CET

Finance Finland hosts a webinar with MEP Sirpa Pietikäinen, Hanken School of Economics, Finance Denmark and Finance Norway to discuss the current availability of ESG data and ideas to make it more accessible and usable for e.g. financers, policymakers, researchers and many more. Registrer HERE

FROM THE INSTITUTIONS

ECON: German Court's decision at the heart of the debate with Lagarde

During the Monetary Dialogue and Public Hearing on systemic risk, MEPs questioned ECB President Christine Lagarde on the decision of the German Constitutional Court. MEPs focused almost exclusively on the ECB's actions to mitigate the economic consequences of the pandemic and on the German Constitutional Court's decision on the ECB’s Public Sector Purchase Programme. Read more
 

ESRB: System-wide restraints on dividends and other pay-outs

A number of European Systemic Risk Board (ESRB) member institutions, including EBA, ECB, EIOPA have encouraged banks and insurance corporations in the European Union to refrain from voluntary pay-outs (e.g. dividends, bonuses and share buybacks aimed at remunerating shareholders). This short report discusses complementary macroprudential actions recommended by the ESRB. Read more
 

Eurosystem: Sustainable finance is key to the green transition

Eurosystem supports the European Commission’s work towards a sustainable finance strategy and improved financial disclosure and stands ready to do its part. Eurosystem identified five key priorities and provided a response to the Commission’s public consultations. Read more

EBA releases bank-by-bank data at the start of the Covid-19 crisis

The European Banking Authority (EBA) published the seventh EU-wide transparency exercise. This additional data disclosure comes as a response to the outbreak of COVID-19 and provides market participants with bank-level data as of 31 December 2019, prior to the start of the crisis. The data confirms the EU banking sector entered the crisis with solid capital positions and improved asset quality but also shows the significant dispersion across banks. Read more

ESMA issues latest Double Volume Cap data: MiFID II

The European Securities and Markets Authority (ESMA) updated its public register with the latest set of double volume cap (DVC) data under the Markets in Financial Instruments Directive (MiFID II). Read more

EBF MEMBERS IN THE NEWS

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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