EBF MORNING BRIEF Wednesday 16 December 2020 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 Bloomberg: The case for keeping EU’s negative rates where they are The ECB's negative interest rates remain divisive. But there’s a stronger case to be made for allowing euro zone borrowing costs to fall lower, especially at this stage of the pandemic, than there is for backing away from them now, writes Bloomberg. Read more (€)
Risk.net: Banks in outer EU grew loan reserves most through Covid
Data from EBA shows that banks in Czechia, Hungary, Romania and Bulgaria were among those that built up their coverage ratios for troubled loans the most across the European Union over the 12 months to end-June, reports Risk.net. Read more (€) Project Syndicate: the ECB’s new stealth mandate Over the course of the pandemic, the ECB has effectively adopted a new mandate, perhaps having concluded that its inflation target is unattainable without more fiscal stimulus, writes Melvyn Krauss, a senior fellow at Stanford University’s Hoover Institution. Read more |
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MAIN EVENTS today ESMA Board of Supervisors meeting For more events check the EBF planning calendar HERE
*All events take place in Brussels unless stated otherwise
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FROM THE EBF MEMBERS Finance Denmark: Banks reported over 42,000 money laundering cases Finance Denmark reports that, in the first three quarters of 2020, banks have notified the authorities of more than 42,000 cases of suspected money laundering. Read more (DK) UK Finance: Parcel delivery scams in run up to Christmas UK Finance is warning consumers to be vigilant against criminals looking to defraud them by posing as parcel delivery companies, as more people across the country are expected to shop online this Christmas than ever before. Read more NVB: Banks involve customers and stakeholders in decision-making The Dutch Banking Association (NVB) gives the floor to employees from their member banks about how banks involve customers and other stakeholders in their policy and decision-making. Read more (NL) Finance Norway: Negative consequences for many Norwegian banks Finanstilsynet (Norwegian Financial Supervisory Authority) directive weakens the competitive position of a large part of the Norwegian banking industry in the real estate development loans market, says Finance Norway. Read more (NO) |
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FROM THE INSTITUTIONS
ECB asks banks to refrain from or limit dividends until September 2021
ECB recommended that banks exercise extreme prudence on dividends and share buy-backs. To this end, the ECB asked all banks to consider not distributing any cash dividends or conducting share buy-backs, or to limit such distributions, until 30 September 2021. The recommendation also reflects an assessment of the stability of the financial system and was made in close cooperation with the European Systemic Risk Board. Read more EBA: Basel III reforms - 2019: Q4 update and Covid impact The EBA published its updated ad-hoc impact study on the implementation of Basel III in the EU in response to the EU Commission’s call for advice (CfA). The study is based on a sample of 99 banks and has a reference date of December 2019. Read more
BIS: Dealing with bank distress: Insights from an extensive database
According to a recent study of BIS, bank distress episodes tend to be followed by recessions, whose severity varies significantly across episodes. There are two interrelated sets of explanations for such variation. One relates to the initial economic conditions, notably the macro-financial imbalances with which countries enter distress. Another relates to the policies deployed. Read more
IMF: What to do when low-for-long interest rates are lower for longer
Central banks have played a pivotal role in easing financial conditions in response to the COVID-19 shock, and helped avert a catastrophic downturn, IMF reports. However, their work is far from done. Yet more monetary stimulus will be needed to support economic recovery, and central banks are implementing innovative new strategies to provide it. Read more |
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The European Banking Federation and fTLD Registry Services (fTLD) are partnering to educate the European banking sector about the cybersecurity role .BANK plays in protecting banks against Business Email Compromise (BEC) scams, phishing and spoofing attacks that lead to breaches, identity theft and financial fraud. fTLD administers the .BANK domain and the EBF has served on its Advisory Council since 2013. To learn more about the security benefits of .BANK, visit https://www.register.bank/ebf/ or contact fTLD at EBF@fTLD.com. |
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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. 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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