EBF MORNING BRIEF Wednesday 19 May 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
FT: Germany’s highest court rejects fresh challenge to ECB
Germany’s constitutional court has rejected the latest attempt to block the European Central Bank (ECB) from buying sovereign bonds, turning the page on a six-year legal challenge against the eurozone’s flagship monetary policy programme. The Financial Times (FT) reports that the country’s highest court decided not to revisit its ruling of May 2020, when it ordered Germany’s parliament and central bank to scrutinize the impact of the ECB’s asset-purchase scheme. Read more (€)
Reuters: EU reassessing role of natural gas in green finance rules
The European Union’s landmark rules to classify green investments may need to accommodate natural gas, the European Commission said, as Brussels weighs a politically fraught decision on how to treat the fossil fuel. A decision is due this year, before the climate change-related section of the taxonomy takes effect in 2022, Reuters reports. Read more
EURACTIV: The real reason we need a digital euro
The European Central Bank (ECB) will decide this summer whether to continue its plans for digitalizing the euro. With bankers pushing back, the major advantage of a digital euro has gained little attention. Central bank digital currencies (CBDCs) have many benefits, but do any of them apply to the EU and justify the ECB considering CBDCs? According to EURACTIV, the major drivers are financial inclusion, enhanced payment efficiency and programmability of payments, meaning the possibility to algorithmically specify rules for future transactions in a digitalized economy. 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
ABI: Monthly Report - May 2021
The monthly Report on the evolution of financial and credit markets by the Italian Banking Association (ABI) provides insights on the main credit and financial market variables and economic phenomena. In April 2021, loans to households and non-financial corporations in Italy were up by +4.2% while interest rates on new loans remain at record low levels. Also, the average interest rate on total bank funding from customers is 0.47%. Read more (IT)
SBA: The Swiss banking sector is viewed very favorably
The biannual opinion survey conducted on behalf of the Swiss Bankers Association (SBA) reveals what the public thinks about the reputation and services of banks in Switzerland and their role in society. A large majority of respondents from almost all political camps say they have a positive perception of banks, and the SME credit programme, sustainability and trust are the main drivers behind the perceived good positioning of Swiss banks. Read more (FR)
Finance Finland: Legacy of COVID-19: Financial sector employers and employees share the same view on hybrid work
According to a survey for financial sector workers examining the impact of COVID-19 on working culture, employers and employees in the banking and finance sector believe that the sector will continue with the hybrid model combining remote work and office time. "Advantages have been increased flexibility, easier balancing of family and work, and more undisturbed working hours. Employers feel that employees have become more independent” says Katja Repo, Director of competence development and digitalization at Finance Finland. Read more |
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FROM THE INSTITUTIONS
ECB: Corporate zombification: post-pandemic risks in the euro area
Policy measures aimed at supporting corporates and the economy through the coronavirus pandemic may have supported not just otherwise viable firms, but also unprofitable but still operating firms often referred to as “zombies”. A preview of the European Central Bank (ECB) Financial Stability Review revives the debate about how these zombies affect economic recovery while stressing that tackling the risk of zombification requires the consideration of reforms to insolvency frameworks, and better infrastructure for banks to manage non-performing loans. Read more
EBA: Plans for the 2021 EU-wide Transparency exercise and EBA Risk Assessment Report
The European Banking Authority (EBA) announces that the annual 2021 EU-wide Transparency exercise will be carried out in autumn and the information on banks’ exposures and asset quality during the crisis will be released to market participants. The exercise will cover the figures from the second half of 2020 and the first half of 2021. The exercise is planned to be launched in September and the results are expected to be published at the beginning of December, along with the EBA Risk Assessment Report. Read more
EFRAG: Commissioner McGuinness urges to work on Draft Sustainability Reporting Standards
In a letter, Commissioner McGuinness invites the European Financial Reporting Advisory Group (EFRAG) to launch as soon as possible the necessary technical work to develop draft sustainability reporting standards. This work is to be undertaken in parallel to the negotiations of the proposed Corporate Sustainability Reporting Directive (CSRD). The Commissioner also asks EFRAG to move ahead with governance reforms. Read more |
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FROM THE EUROPEAN BANKING FEDERATION
ESAs Joint Consultation paper on Taxonomy-related sustainability disclosures (SFDR RTS): EBF response
The European Banking Federation has responded to the ESAs Joint Consultation paper on Taxonomy-related sustainability disclosures (SFDR RTS). Click here to read the EBF full position.
DG FISMA’s Crisis management and Deposit Insurance (CMDI) framework consultation: EBF feedback
A good moment to take stock of the EU Crisis Management and Deposit Insurance (CMDI) framework. DG FISMA’s CMDI review consultation raises important questions. EBF shares thoughts on possible clarifications, improvements, and the next steps. Click ‘here’ to read our detailed feedback to DG FISMA or ‘here’ for a short summary of our main points. |
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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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