EBF IN THE NEWS

EBF MEMBERS IN THE NEWS

FROM THE MEDIA

Politico: US counts most corona cases, EU death tolls keep rising

Corona infections in the United States passed those of Italy and China late on Thursday. Many other countries around the world see death tolls rising. With live updates, Politico reports on the latest figures and developments from European countries. Read more

FT, Reuters: Europe's banks reconsidering dividends, buybacks

Various media report that European banks are reconsidering dividends in order to be more resilient against the economic fallout of the Covid-19 pandemic. The FT reports that the European Banking Federation has written to the ECB to say the region’s lenders are prepared to stop hoarding capital for dividend payouts and refrain from share buybacks this year so they can lend more to companies and consumers hit by coronavirus, In Austria, a European solution would be welcomed, according to Der Standard. Banks in other countries such as Norway and Sweden and also Spain's Santander are reconsidering dividends, says Reuters. Belgium's finance minister Thursday said it would not be right if banks pay out dividends amid these times, reports De Tijd. FT (€) MilanoFinanza Reuters Der Standard (DE) Reuters II De Tijd (NL) 

GlobalCapital: ECB takes flexible stance on bond buying plan

The European Central Bank has announced it would be removing the self-imposed limits on its holdings of sovereign debt for its €750 billion pandemic emergency purchase programme, report various media. According to the FT analysts say the move could trigger legal challenges. Almost all constraints that applied to the ECB’s previous asset-purchase programmes have been removed or significantly loosened, according to the legal decision detailing the ECB’s latest plan, which was published on Wednesday night in the official journal of the EU. The ECB also announced it has no plans to deploy its OMT emergency bond purchase scheme and sees it as an inappropriate tool to fight the coronavirus crisis, says Reuters. Read more(€) FT(€) Reuters

Bloomberg: EU leaders struggle to progress with economy tanking

European leaders struggled to agree on a concrete strategy to contain the fallout from the deadly coronavirus, leaving key details to be hammered out in the weeks ahead, reports Bloomberg. The heads of government also pledged to make their emergency measures compatible with the principles set out in the Green Deal, notes Bloomberg in another story. With thousands of people falling ill and hundreds dying every day from the pandemic, the leaders spent much of Thursday arguing over whether a joint communique would hint at financial burden sharing as a way to repair the damage to their economies. Earlier this week, finance ministers had passed the buck to the leaders but the leaders passed it right back. Read more Bloomberg II FT(€) The Guardian

FROM THE INSTITUTIONS

Joint EU statement following G20 Leaders' videoconference

Commission President von der Leyen and Council President Michel have given a joint statement following the G20 Leaders’ videoconference. The Presidents insisted that G20 countries should coordinate their macroeconomic policies, mobilising all instruments available, to mitigate the economic downturn, support workers and companies most affected. The EU called on G20 members to assist each other in repatriating citizens stranded abroad who wish to return home. Read more

EBA: Prudential framework in light of Covid-19 measures

The EBA has provided clarity to banks and consumers on the application of the prudential framework in light of Covid-19 measures. It calls for flexibility and pragmatism in the application of the prudential framework and clarifies that, in case of debt moratoria, there is no automatic classification in default, forborne, or IFRS9 status. It also insists on the importance of adequate risk measurement and expects institutions to prioritise individual assessments of obligors’ likeliness to pay when possible. Read more

Eurogroup: Main results

The Eurogroup discussed further policy responses to the Covid-19 economic fallout, following the invitation of members of the European Council on 17 March. Governments and institutions in the EU are taking decisive measures said Eurogroup President Mário Centeno. First, there is a clear increase in our fiscal response. In one week alone, the total amount of the fiscal measures at the national level has doubled and is now estimated at 2% of GDP. Liquidity support schemes for firms and workers have been scaled up from 10% to more than 13% of GDP. Second, coordinated measures at the European level are being deployed, supplementing national efforts. Third, a debate has started on additional forms of support to reinforce crisis management and prepare the ground for economic recovery. Read more
 

Commission: Covid-19: Temporary Framework for State aid measures

The European Commission published a communication which sets out the possibilities Member States have under EU rules to ensure liquidity and access to finance for undertakings, especially SMEs that face a sudden shortage in this period, in order to allow them to recover from the current situation. These rules will not apply after 31 December 2020. Read more

FSB: Covid-19: Coordinating financial sector work

The FSB encourages authorities and financial institutions to make use of the flexibility within existing international standards to provide continued access to funding for market participants and for businesses and households facing temporary difficulties from COVID-19, and to ensure that capital and liquidity resources in the financial system are available where they are needed. Many members of the FSB have already taken action to release available capital and liquidity buffers, in addition to actions to support market functioning and accommodate business continuity plans. 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.