📝EBF Morning Brief - Tuesday October 31 2023: Europe’s top banking supervisor says fragmenting market raises risks

EBF MORNING BRIEF Tuesday 31 October 2023

FROM THE MEDIA

FT: EU top banking supervisor says fragmenting market raises risks

The increasing fragmentation of Europe’s banking system is a “faultline” that heightens financial vulnerability and saddles everyone with higher costs, the European Central Bank’s outgoing head of supervision Andrea Enria has warned. Enria told the Financial Times (FT) that the gap between loan and savings rates has boosted lenders’ profits and prompted some countries to introduce windfall taxes on the sector. This was in part due to the lack of cross-border competition across the single currency bloc. Read more

Reuters: ECB hawks take aim at rate cut bets for first half of 2024

Two European Central Bank (ECB) policymakers pushed back against market bets that the ECB will start cutting interest rates in the first half of next year and undo some of its recent efforts to fight high inflation, Reuters writes. Read more

S&P Global Market Intelligence: European banks face profit, liquidity hit from possible reserve requirement hike

Eurozone banks may suffer billions of euros in lost profits and be forced to deal with tighter liquidity from a potential increase in the reserves they are required to hold at the European Central Bank (ECB). The aggregate pretax profit of eurozone banks hit €170 billion in 2022, according to S&P Global Market Intelligence data. That profit could drop by about €5.61 billion in the event of an increase.Read more

MAIN EVENTS

Council Working Party on Financial Services and the Banking Union (Financial Services)

Council Working Party of Financial Counsellors

Santander International Banking Conference 2023 (Wim Mijs, EBF CEO and Alexandra Maniati, EBF Senior Director, Innovation & Cybersecurity speaking)

The Financial Times ‘Energy Transition’ Summit

FROM EBF MEMBERS

Finance Denmark: Students learn about personal finance

Every year, primary school pupils have the chance to acquire knowledge about interest rates and budgets thanks to a series of financial literacy lessons offered by Finance Denmark in cooperation with the Danish Association of Mathematics Teachers. Read more (DK)

UK Finance: The rise of AI in financial services

The use and exploration of artificial intelligence in the financial sector have accelerated rapidly in recent years, with the explosion of generative AI bringing a new wave of digital change and the conversation around AI to the mainstream. UK Finance explores the opportunities and challenges related to AI. Read more

Finance Latvia: New type of fraud: asked to 'expose' dishonest bank employees by transferring money to safety

A new type of fraud has become popular with customers receiving calls notifying them of suspicious activity in their account due to the actions of dishonest bank employees. Finance Lativia urges to report such calls and reminds people that neither banks nor the police will ever ask people to hand over cash or disclose their data. Read more (LAT)

FROM THE INSTITUTIONS

ECB: The monetary policy stance

"Interest rate hikes are being transmitted forcefully to financing conditions, pushing inflation down," says European Central Bank (ECB) Vice-President Luis de Guindos. According to de Guindos, rates are at levels that, maintained for sufficiently long, will substantially contribute to the 2% inflation goal. Read more

ESMA: Analysis of the evolution of the EEA share market structure after the application of MiFID II

The European Securities and Markets Authority (ESMA) published an article on the evolution of the European share market structure from 2019 to 2022, following the implementation of the Markets in financial instruments directive (MiFID II). Specific focus is given to the impact of the UK’s withdrawal from the EU, given its pivotal role in equity markets. Read more

EBA: Technical package for phase 3 of 3.3 reporting framework

The European Banking Authority (EBA) published the technical package for the third phase of version 3.3 of its reporting framework. This provides the standard specifications that include the validation rules, the Data Point Model (DPM), and the XBRL taxonomies to support the new reporting on Interest Rate Risk in the Banking Book (IRRBB). Read more

FROM THE EBF

New EBF Vacancies! Work with us!

Visit our Vacancies page to learn more about the opening positions at the EBF. Read more

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

European Banking Federation