EBF WEEKLY BRIEF                                Friday 17 July 2020


These are the top stories in European banking, financial regulation and EU policy from this week with a preview of the main news events next week, brought to you by the European Banking Federation. 
 

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EBF NEWSLETTERS DURING THE SUMMER SEASON


As Europe switches into its summer rhythm we adjust our newsletter publications accordingly. The daily EBF Morning Brief will be halted and will resume in the first week of September. The EBF Weekly Brief will continue once a week on Friday at midday until the end of August. The European Banking Federation wishes you a pleasant, healthy and relaxing summer. 

FROM THE MEDIA today

 

Reuters, Politico: EU seeks deal on stimulus for Covid-hit economy

EU leaders will seek to overcome their differences over a proposed stimulus to kick-start economic growth stifled by the coronavirus, writes Reuters. It is the first in-person summit since the coronavirus crisis hit, under pressure to reach a deal on the bloc's long-term budget and an economic recovery fund, writes Politico in its Live Blog. The summit could last for several days. Read more Politico Euractiv
 

FT: EU accelerates plans to borrow €100bn in Covid-19 relief effort

Brussels is fast-tracking plans to borrow €100 billion to fund aid to countries hit hard by the coronavirus pandemic, after officials were inundated with applications for cheap loans under a programme set up in April, writes the Financial Times. Read more (€)
 

CNBC: ECB leaves rates and stimulus program unchanged

The European Central Bank opted Thursday to keep its interest rates and emergency coronavirus stimulus program unchanged, while it monitors the economic strength of the euro zone, reports CNBC. According to Bloomberg, Christine Lagarde said she won’t let monetary policy be constrained during the recovery phase. Read more Bloomberg EUReporter FT(€)
 

Euractiv: US-EU Privacy Shield struck down by European court

The EU Court of Justice has ruled that a transatlantic agreement used by thousands of companies to transfer data between the EU and US does not protect the privacy of European citizens, report various media. Read more BBC Bloomberg ArsTechnica
 

Disruption Banking: A leap forward for EU's ESG reporting framework

The European Commission is pushing on numerous fronts as policymakers look to shift ESG to the centre stage in financial services. Meanwhile bank sector representatives, including the European Banking Federation are calling for a common EU-wide ESG data register and further regulatory harmonisation, says Denisa Avermaete, Senior Policy Adviser Sustainable Finance in an interview with Disruption Banking. Read more


European banks in the news: Nordea, Danske Bank, Swedbank

Nordea Bank, based in Helsinki and the largest pan-Scandinavian banking group, reported that its second-quarter net profit declined 64 percent to 243 million euros from last year's 681 million euros, writes Nasdaq. Danske Bank, Denmark largest lender, beat second-quarter net profit expectations and saw a rebound in lending activity which positively affected its net interest income, reports Reuters. Swedbank reported profits better than market forecasts as it booked lower costs and despite the coronavirus pandemic, reports Morningstar. Nordea Danske Bank Swedbank

FROM THE INSTITUTIONS this week


ECB: Governing Council’s latest monetary policy decisions

At Thursday's meeting, the Governing Council of the ECB decided the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.50% respectively. Read more ECB's Lagarde introductory statement


ECJ: EU court rules EU-US data protection agreement invalid

The European Court of Justice has invalidated Decision 2016/1250 on the adequacy of the protection provided by the EU-US Data Protection Shield, but considers standard contractual clauses for the transfer of personal data to processors established in third countries valid. Read more


Commission: Long-term programmes and future investment are at risk

After analysing the draft conclusions for the 17 July EU summit, EP negotiators warn that proposed budget cuts endanger long-term investment in research, youth or the digital sector. EP negotiators delivered Parliament’s detailed comments on the 65-page draft conclusions (‘negotiating box’) presented by European Council President Charles Michel last Friday, which will form the basis of the summit starting on 17 July. Read more


ESMA begins recruitment process for new Chair of the Authority

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published a vacancy notice to fill the position of Chair of the Authority. The current Chair, Steven Maijoor, having served the maximum number of ten years allowed under the ESMA Regulation, will leave the post on 31 March 2021 and ESMA now starts the process of finding his successor. Read more


ECB: The euro area bank lending survey – Second quarter of 2020

The results of the July Bank Lending Survey by the European Central Bank show a continued upward impact of the coronavirus (Covid-19) pandemic on firms’ loan demand, largely driven by emergency liquidity needs. At the same time, banks also reported broadly unchanged credit standards on loans or credit lines to firms in the second quarter of 2020. Read more


Coronavirus Response: Commission welcomes 'Best Practices'

The European Commission has welcomed a list of ‘best practices' agreed by the financial sector, and consumer and business organisations, to help further mitigate the impact of the coronavirus pandemic. It sets out concretely how different market participants can support citizens and businesses throughout the crisis. Read more Best practices

SAVE THE DATE

and join us 
 

Digital Innovation, Cybersecurity & Operational Resilience in Finance

INNOVATION AND CYBER THURSDAYS
 

Every Thursday from 22 October to 19 November 2020. Online

Join us for the virtual EBF INNOVATION AND CYBER THURSDAYS
starting on 22 October

 

to hear from and interact with European and international experts, policymakers and stakeholders: How can European banks remain competitive in the EU and globally? What can regulators, supervisors and industry do together to foster innovation, security and resilience in financial services? What lies in the way from agile and cyber secure banks to an innovative and resilient financial ecosystem?

Stay tuned for more to come!

FROM THE MEMBERS this week


Latvia: Banks are entitled to write-off unrecoverable mortgage debts

On 9 July, 2020 the Parliament of the Republic of Latvia approved amendments to the Law “On Credit Institutions” and  the Law “On Personal Income Tax” that entitle credit institutions to unilaterally write off irrecoverable mortgage loans that had been taken before the economic crisis of 2008. The initial idea of the respective amendments was suggested by the Bank of Latvia and was strongly supported and promoted by credit institutions operating in Latvia. Read more

 

Spain: AEB will train 1,200 seniors online in digital skills

The Cibervolunteers Foundation and AEB have launched a new phase of their Expertclick program, with which they will train 1,200 people over the age of 55 in the use of new technologies this year 2020, bringing the total number of beneficiaries since the program began three years ago to 2,500. Read more (ES)


Bulgaria: Submission of applications under the Procedure for deferral

The Executive Board of the Association of Banks in Bulgaria expresses the satisfaction of the banking community with the approval by the Bulgarian National Bank (BNB) of the ABB’s proposal to extend the deadline for submitting requests by bank customers under the Procedure for deferral (“Procedure for Deferral and Settlement of Liabilities Payable to Banks and their Subsidiaries – Financial Institutions”) by 90 days. Read more


Germany: Crisis as an opportunity for more integration

The headlights could hardly be brighter, the expectations could not be higher: With the assumption of the EU Council Presidency on 1 July 2020, the Federal Government is faced with the historic task of navigating the European community of states through the deepest economic crisis since the end of the Second World War and doing everything possible to ensure that a compromise is reached as quickly as possible on the Commission's multi-billion euro reconstruction package writes Kolja Gabriel, Head of European and International Affairs at the Association of German Banks. Read more (DE)


Switzerland: Modernization of the withholding tax

A reform of the withholding tax is needed. Their concept is outdated. It slows down the development of the Swiss capital market. Building on the Federal Council's consultation process, the SBA is proposing a targeted concept. Read more (DE)

FROM THE EBF this week


EBF Vacancy: Media & Communications Officer

The European Banking Federation seeks to recruit, for a full-time position based in Brussels, an experienced Media & Communications Officer who will be instrumental in ensuring a solid presence within traditional and digital media and building relations with all relevant stakeholders. The Media and Communications Officer will also help determine and implement a coherent communication strategy and make sure that the different initiatives within EBF are well-aligned and impactful. Drafting and producing effective communication means are also a structural part of the job. Read more
 

Renewed Sustainable Finance Strategy: EBF response

The European Banking Federation has responded to the European Commission consultation on the Renewed Sustainable Finance Strategy. Full response available HERE


EBF statement on EC initiative on Covid-19 relief measures

The European Banking Federation, along with other financial industry associations and representatives of consumers and businesses in the European Union, notes Tuesday’s announcement by the European Commission concerning best practices in relation to relief measures offered in the context of the Covid-19 crisis. Throughout this crisis, the banking industry has continued to stand with its clients – both businesses and households – in support of the European economy. Read more


Wim Mijs interviewed by EIT Digital CEO Willem Jonker, July 2020

How can the banking sector help to mitigate the impact of the Corona crisis? What is the role – and responsibility – of the European financial sector in boosting entrepreneurship? What impact will the Covid-19 crisis have on the digital transformation of the finance sector? Click here for the interview. EIT's Makers & Shapers videocampaign

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.

This newsletter is published by the EBF Mediacentre.
For questions or suggestions contact mediacentre@ebf.eu

 

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