| EBF WEEKLY BRIEF Friday 15 May 2020
These are the top stories in European banking, financial regulation and EU policy from this week and preview of next week's highlight, brought to you by the European Banking Federation.
|
Recommend the EBF newsletters to a colleague. Click here to sign up! |
|
|
EBF Board: committed to supporting clients in Covid-19 era |
|
EBF Board members met on Friday in a video conference for their 130th meeting and reiterated their unwavering commitment to supporting businesses and households in overcoming the severe financial challenges posed by the Covid-19 pandemic. The Board underlined that the sector’s responsible, constructive and proactive engagement with clients and authorities will continue as long as is necessary. “Banks are part of the solution and the way forward. As restrictions begin to ease, EBF will play their full role in restarting the real economies where they are present and continue to always do the right thing,” says EBF President Jean Pierre Mustier. The Board exchanged views on actions and initiatives taken by banks since the outbreak started and noted that banks across Europe have swiftly adapted so that they could continue providing essential services under challenging conditions. In an unprecedented crisis such as the one we face at present, it is unfortunately inevitable that the consequences of the downturn will be felt by consumers and businesses. EBF Board Communiqué |
 |
|
Ecofin to discuss Covid-19 measures in European semester |
|
European economic and finance ministers will meet virtually for the Ecofin Council on Tuesday 19 May. According to the agenda, ministers will exchange views on the progress achieved on the EU's response measures taken to tackle the Covid-19 crisis. The Commission and the European Central Bank will present to the Council their assessment of the economic situation. Ministers will also hold a discussion following presentations by the Commission of its approach to further strengthen the EU's fight against money laundering and terrorist financing. The new action plan aims at better protecting the EU financial system from AML risks. Furthermore, the EU presidency will inform ministers of the preparation of Council conclusions on the European Semester 2020 country reports. Read more |
|
Brexit & CRR on the ECON committee meetings' agenda next week |
|
The European Parliament has published the agenda for two extraordinary ECON Committee meetings on Monday 18 May and Wednesday 20 May. On Monday, views on amending regulations regarding adjustments to the Capital Requirements Regulation (CRR) proposed by the Commission in response to Covid-19 will be exchanged, followed by a vote. The Commission recognised some amendments to the CRR are required to improve banks' capacity to lend and to absorb losses. On Wednesday, the Committee will vote on its recommendations on the European Union's future relationship with the United Kingdom. The UK is hoping to up the pace towards a free trade agreement, as well as striking deals on various matters including air transport, energy and law enforcement. The European Union insists that all key areas are treated in parallel. Agendas |
|
FROM THE MEDIA today
Politico: Europe's upcoming supervision mandate to fight dirty money
According to Politico, the European Commission is set to create a watchdog to enforce the bloc’s anti-money laundering rules but the plan has already faced scepticism. Executive Vice President Valdis Dombrovskis presented the plans for enhanced EU supervision as part of the AML action plan. The Commission’s plan also outlines initiatives to harmonize and update anti-money laundering safeguards while improving communication channels among financial intelligence units, the agencies in each country that analyze information from banks and other businesses obliged to report on suspicious activities. Read more EUObserver
Bloomberg: 2008 crisis provides lessons for virus bailouts in EU Similar to the financial crisis a decade ago, EU competition watchdogs had to oversee massive state bailouts doled out to a banking system on the brink of collapse, writes Bloomberg. In contrast with the banking-crisis response, new EU rules warn bailed-out companies to shun “aggressive commercial expansion” and “excessive risks.” With a credit crunch threatening to topple global economies, the EU stepped in to ensure loans started flowing but with strict conditions. Der Spiegel notes that the combination of rising private and public debts also have a dark side and could lead to a 'post-crisis crisis' where Europe's economy will enter into zombie mode. Read more Der Spiegel
Reuters: European financial stability threatened by junk bonds The European Union’s financial system may not cope on its own with a looming wave of credit rating downgrades caused by the coronavirus pandemic, which may disrupt funding markets, the European Systemic Risk Board said, according to Reuters. The European market for high-yield bonds is too small to absorb a raft of downgrades to “junk” comparable to the one in the last financial crisis and warned about the knock-on for banks, insurers and companies. Read more
Bloomberg: ‘Green Swan’ risks pushes for joint climate action The coronavirus pandemic that’s sent the global economy into a tailspin highlights the need for international collaboration to tackle crises like climate change, according to the Bank for International Settlements. Much like global warming, the disease outbreak meets the criteria for being a “Green Swan,” writes Bloomberg. Read more
Reuters: Spanish banks' ECB borrowing rises to 16-month high in April Spanish banks borrowed 167.5 billion euros in April from the European Central Bank, a 17% increase from March to the highest level in 16 months amid the coronavirus pandemic, writes Reuters based on Bank of Spain data. Read more |
|
FROM THE INSTITUTIONS this week
ECB: Update on economic and monetary developments
The ECB has published a report on inflation measurement in times of economic distress as part of the economic bulletin. It finds that the Covid-19-related economic developments pose challenges for inflation analysts. Read more BIS: Climate change: reflections on efficiency versus resilience The BIS has published a paper on central banking and financial stability in the age of climate change. It discusses how to deal with global risks such as climate-related risks, which pose a growing threat to financial stability. Read more
Fed: Jerome H Powell: Current economic issues
Jerome H Powell, Chair of the Board of Governors of the Federal Reserve System, has given a speech about Covid-19 and current economic issues. He discusses the measures taken so far to offset the economic effects of the virus, and the path ahead. Read more
ECB's Fabio Panetta interview with Der Standard
Fabio Panetta, Member of the Executive Board of the ECB has given an interview on the banks’ behaviour during the Covid-19 crisis. He stated that banks are more resilient today than they were a decade ago. Read more Speech by President von der Leyen at the European Parliament Plenary The economic recovery instrument will be focused on where there is the greatest need and the greatest potential said President von der Leyen at the European Parliament Plenary. Together with next EU budget, this will be the ambitious answer Europe needs. Read more
European Parliament: Do not take the EP’s consent on MFF for granted Ahead of this week’s plenary vote on a resolution on the planned new long-term EU budget, Budget Committee Chair Van Overtveldt shared his thoughts in an interview on EP’s Facebook page. Read more
Video conference of the Eurogroup: Main results
In regular format, the Eurogroup agreed on the European Stability Mechanism's Pandemic Crisis Support and discussed the economic situation in the euro area, based on the European Commission's spring forecast. Read more Remarks by Mário Centeno |
|
WEDNESDAY 27 MAY - ONLINE WORKING SESSION
How to use a .BANK domain for
cybersecurity defense
'DotBank' is a global industry initiative. Join us to learn why a move to the gated .BANK domain is a bank’s best option for cybersecurity against phishing and spoofing attacks and Business Email Compromise (BEC) leading to breaches, identity theft and financial fraud. A verified .BANK domain creates trusted websites and email channels; a trust that is necessary when adding digital banking products and services for new customer acquisition and enhancing existing relationships. INFO & REGISTRATION |
|
EBF MEMBERS IN THE NEWS this week
Bulgaria: The economy and the banking sector in Bulgaria
The Association of Banks in Bulgaria has published its quarterly information with key highlights on the economy and the banking sector in Bulgaria in the first quarter of 2020. Read more
Norway: That's why we need debt collection companies
Debt collection companies contribute with confidence that debt is settled. The industry is changing and the corona crisis poses increased payment challenges said Hear Siv Hjellegjerde Martinsen, CEO of Lindorff, in an interview with Finans Norge. Read more (NO)
Denmark: Corona crisis removes banks' profits
The largest Danish banking and mortgage groups suffered a total loss of DKK 2.3 billion in the first three months of the year against a profit of DKK 6.3 billion. This shows a new calculation from Finans Danmark based on the latest accounts of the banks. Read more (DK)
UK: Benefits of diversity and collaboration in business finance
Over 300,000 businesses have had government-supported finance applications approved by accredited lenders and finance providers for almost £15 billion in the last few weeks –double the rate of all lending in the last year. Read more
Belgium: Mobile banking takes a central place in consumers' lives
Mobile banking continues to gain popularity among Belgian consumers. In the last five years, some one million subscriptions have been added each year. Impressive numbers when you consider that mobile banking didn't even exist ten years ago. Read more (NL)
Spain: Voluntary bank moratorium in the face of the crisis
Last March the government adopted a series of measures, included in two Royal Decree-Laws, aimed at alleviating the economic difficulties that the most disadvantaged people are likely to face as a result of the coronavirus crisis. Read more (ES)
Finland: PISA report: Finnish students place second
Of the 20 countries and economies participating in the assessment, Finnish teenagers placed second after their Estonian comrades in the PISA test of financial literacy. Finland has a long and successful history in PISA tests. Read more |
|
EBF IN THE NEWS this week
Cross-Border Payments Regulation – Implementation Guidance
The EBF has published a guidance document on the revised Cross-Border Payments Regulation. The purpose of this document is to help EBF members in their implementation of the Regulation. Read more EBF, EACB, ESBG and EAPB Joint Letter: TARGET2 Securities project The European Banking Federation, together with the EACB, ESBG and EAPB has written to the European Central Bank to request a one-year delay to be considered for the ongoing
consolidation project TARGET2 and TARGET2 Securities. Read more
EBF-BCESA: Joint Declaration on Providing Financial Services
The Joint Declaration on Employment Aspects of Providing Financial Services has been signed by the social partners in the European Banking Sector. EBF-BCESA along with ESBG and EACB signed the Joint Declaration with UNI Europa Finance. Read more
EBF presents new AML/CFT webiste page
The European Banking Federation has redesigned the ALM/CFT page on its website. Have a look at the concrete policy recommendations that EBF has elaborated to move towards a stronger EU-wide approach to fight dirty money. Read more |
|
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. |
|
This newsletter is published by the EBF Mediacentre.
For questions or suggestions contact mediacentre@ebf.eu
Recommend the EBF newsletters to a colleague. Click here to sign up!
|
European Banking Federation
Avenue des Arts 56, B-1000 Brussels, Belgium
|
|
|
|
