EBF WEEKLY + FINANCIAL REGULATION AGENDA
for the week starting Monday 18 January 2021

An overview of the main financial regulation and banking stories this week and a look ahead to key events for the upcoming week, brought to you by the European Banking Federation.

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Banking Union and NPLs to be discussed by finance ministers

European finance ministers are to meet again on Monday and Tuesday. Euroroup President Paschal Donohoe (photo) is due to report on the state of progress of the banking union. He is also due to discuss renewed efforts for the European deposit insurance scheme (EDIS) across the single currency area. In an interview last week Mr Donohoe said that "there is a renewed responsibility on those within the Eurogroup to look at how we can deepen the foundations of the euro and deepen the economic architecture of it”, given the economic toll from Covid-19. On Tuesday, together with colleagues from non-euro countries, finance ministers will hear from Portugal which will present its Ecofin work programme for the EU presidency in the first half of this year. EU finance ministers are expected to discuss the EU Commission's action plan for tackling non-performing loans in the aftermath of the pandemic. The proposed strategy aims to ensure that EU households and businesses continue to have access to the funding they need throughout the Covid crisis.  Read more

FINREG AGENDA for next week

Thursday 21 January:

• EBF Brexit Task Force meeting

• Governing Council of the ECB: monetary policy meeting followed by a press conference. Livestream

• European Parliament plenary meeting

FROM THE MEDIA this week

EU TAXONOMY FOR SUSTAINABLE ACTIVITIES

Join us at the EBF-UNEP FI event 26-27 Jan.

Join us together with the United Nations Environment Programme Finance Initiative (UNEP FI) on 26 and 27 January for an online event to mark the launch of our joint EU Taxonomy report: Testing the application of the EU Taxonomy to core banking products: High level recommendations. REGISTER

FROM THE EBF this week

Digital Euro: EBF presents its views to ECB

The European Banking Federation (EBF) has submitted its views on the introduction of a digital euro as a central bank digital currency to the European Central Bank (ECB), which closed its public consultation on this topic on Tuesday. EBF welcomes detailed discussions with sufficient time prior to a decision on a project launch, and stands ready to engage with the ECB in conducting additional assessments and applying investigative tools beyond the launched public consultation. Read more

FROM EBF MEMBERS this week

Finance Norge: Necessary assets made available for landslide victims

Finance Norge reports that landslide victims in Gjerdrum receive help in retrieving first necessity personal belongings. The insurance companies' residual value rescue service (RVR), administered by Finans Norge, organizes and finances the work. Read more (NO)

SwissBanking: Banks support the new proposal for the CO2 law

The Swiss Bankers Association (SBA) advocates for a "yes" on the CO2 law, to be voted by referendum later this year. The SBA pursues the ambition to position Switzerland as the leading international hub for sustainable finance, as the new CO2 law would create reliable framework conditions and effectively support the transformation to a more sustainable economy. Read more (DE)

NVB: Consumer confidence in banks stable, with an upward trend

The Dutch Banking Association (NVB) reports that confidence in the banking sector has remained stable over the past year, with a slight increase during the year, according to the Banking Confidence Monitor 2020 that the Ipsos agency conducted among nearly 12,000 Dutch bank customers. Read more (NL)

CBA: Donations to help against the earthquake

The Croatian Banking Association (CBA) invites citizens and companies to responsibly donate to citizens affected by the earthquake. Namely, some citizens suffered great material damage and other consequences of the earthquake. Read more (HR)

GREEN BANKING AND GREEN CENTRAL BANKING:
WHAT ARE THE RIGHT CONCEPTS?

ILF conference on Monday 25 January
 

Wim Mijs, CEO of the EBF, will moderate at the high-level conference of the Institute of Law and Finance (ILF) at Goethe University on Monday 25 January. Christine Lagarde, President of the ECB, will deliver the keynote address. EBA Chair Jose Manuel Campa, John Berrigan, Director General, DG FISMA, and Bundesbank President Jens Weidmann as well as the CEOs of Deutsche Bank and Rabobank are among the top names on the speaker line-up. 

REGISTER

FROM THE INSTITUTIONS this week

ECB issues supervisory guidance on consolidation among banks

The European Central Bank on Tuesday published its guide on how it plans to use its supervisory tools to facilitate sustainable consolidation among banks. The ECB encourages banks to engage with supervisors early on and explain its expectations in a guide, which also benefited from banks’ input. Read the full guide

EBA points to a further rise in capital and leverage ratios

The European Banking Authority (EBA) published its quarterly Risk Dashboard together with the results of the Risk Assessment Questionnaire. The Q3 data shows a rise in capital ratios, and an improvement in the NPL ratio, while the return on equity (RoE) remained significantly below banks’ cost of equity. The Risk Dashboard includes, for the first time, data on moratoria and public guarantee schemes. Read more

Lagarde defends ECB economic outlook even as banks cut forecasts

The European Central Bank’s latest projections for economic growth in the euro area are still “very clearly plausible” despite the resurgent coronavirus and renewed lockdowns, President Christine Lagarde said. Read more

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, with active members in 32 countries. 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.

European Banking Federation