EBF MORNING BRIEF Wednesday 14 July 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
Reuters: Analysis: Digital rivals? Central bank e-cash plans prompt lenders to wade in
As central banks dabble with digital currencies, commercial lenders are ramping up efforts to influence policy and technical plans, Reuters reports. Lenders are funding research, teaming up with tech companies and central banks on pilot projects while stepping up lobbying. Trade groups like the European Banking Federation (EBF) and the U.S. Chamber of Commerce are also working on the issue. The implications of CBDCs are “concerning”, the EBF said in an email, adding: “Given the potentially far-reaching impact of the digital euro, the EBF is keen to see a more structured dialogue with the European Central Bank and the European banks to work closely together on this project”. Read more
FT: The European school of central banking is no more
Last week the European Central Bank completed its strategy review ahead of schedule, to much less fanfare than the Federal Reserve’s equivalent update two years ago. But behind this subdued reception lies a notable normalisation of the eurozone institution, FT's Martin Sandbu reports. Read more (€) VOX/CEPR: Climate change will unevenly impact the European financial system Climate change will impact those parts of the financial system most exposed to its disruptive effects. This column by VOX analyses a new financial stability risk mapping for the EU financial system. It highlights a high level of risk concentration, both in European regions subject to climate hazards as well as economic sectors with diverse carbon emission intensities. Long-term scenario analyses suggest that the risks will be best addressed through proactive policies that directly contain global temperature rises. Read more |
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MAIN EVENTS For a full-year overview of key financial regulation events: click here |
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FROM THE EBF MEMBERS
CBA: Launch of the "Cyber Campaign"
The pandemic situation and the transfer of people online have created ideal conditions for hackers and online fraudsters. Data from the Czech Banking Association (CBA) show that attacks on bank clients are growing rapidly. Besides, attackers' methods are also evolving and, due to low public awareness, not all attacks can be systematically prevented. This is among the reason why the banking association joined forces with the Police of the Czech Republic and ESET and is launching an educational "Cyber Campaign". Read more (CZ)
Finance Finland: The interest rate pandemic has not shaken Finns' confidence in the employment pension system
Finns' confidence in the pension system has remained strong, according to the Pension Barometer of the Finnish Centre for Pensions (ETK). The interest rate pandemic has therefore not undermined Finns' confidence in the pension system, Finance Finland reports. As in previous years, confidence is strongest among the oldest age groups. Read more (FI)
UK Finance: Response to Bank of England Financial Stability Report
Responding to the Bank of England's Financial Stability Report, David Postings, Chief Executive of UK Finance, said: "As the UK’s economic outlook improves, we welcome the PRA’s decision to return to its normal approach to dividend payments. The banking and finance sector has been vital in supporting the UK economy during the pandemic, and is committed to playing a full role to back the economic recovery". Read more |
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FROM THE INSTITUTIONS
ECB: Our 2% inflation target: simple, solid, symmetric
Bringing together staff from the entire Eurosystem was key for the strategy review process, and listening to the people was a real learning experience, says European Central Bank (ECB) President Christine Lagarde in an interview with the Financial Times. "The new strategy gives us the ability to be flexible around 2%, as we recognize that 2% is not a ceiling and there will be oscillation. I'm not saying that it is more accommodative, but I'm saying that the tools are there and we recognize their effectiveness", she adds. Read more
ESMA: Risks arising from payment for order flow
The European Securities and Markets Authority (ESMA) is issuing a public statement to remind firms that the receipt of payment for order flow (PFOF) raises significant investor protection concerns. It also highlights key MiFID II obligations aimed at ensuring firms act in their clients’ best interests when executing their orders. Read more
EBA: Guidelines for the use of data inputs in the expected shortfall risk measure under the Internal Model Approach
The European Banking Authority (EBA) published its final Guidelines clarifying the requirements that the data inputs used to determine the scenarios of future shocks applied to modellable risk factors should meet. The Guidelines, which are part of the deliverables included in the roadmap for the new market and counterparty credit risk approaches, will be applicable from 1 January 2022. 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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