EBF WEEKLY + FINANCIAL REGULATION AGENDA
for the week starting Monday 7 December 2020 An overview of the main banking stories this week and a look ahead to key events in European banking and financial regulation for the upcoming week, brought to you by the European Banking Federation.
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What to expect from next weekâs ECB monetary policy meeting? |
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Expectations are high for next Thursday's ECB monetary policy meeting. At the October meeting, ECB president Christine Lagarde broke with an unwritten communication principle of her predecessor, Mario Draghi, to ânever pre-commitâ. Instead, Lagarde de facto pre-announced a new ECB action to be taken next week, calling it a ârecalibrationâ of all instruments. The reasons for the new ECB action are clear: with the second lockdown, the September projections have become outdated and too optimistic. The eurozone economy needs fresh support to get through the second lockdown and to start recovery in 2021. However, this is not a crisis in which monetary policy is the main actor, but rather fiscal policy. The ECB is very well aware of this situation and knows that excessive new monetary stimulus is unlikely to be a gamechanger for the economy. Therefore, while still remaining vague enough to keep options open, Christine Lagarde will try to signal next week that this new round of monetary action will really be the last. Read more |
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Thursday-Friday: European Council and Euro Summit in Brussels |
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Next Thursday and Friday EU leaders will meet for the Euro Summit in the 27 EU Member Statesâ format. The EU leadersâ discussion will concentrate on areas where convergence of views is the greatest. Progressing step-by-step on issues such as the completion of the banking union, and the reform of the European Stability Mechanism (ESM), to sign the revised ESM treaty and to launch its ratification, a fundamental step towards strengthening the resilience of the European Monetary Union. Strengthening the international role of the euro becomes both the logical continuation of and a new frontier in the Economic and Monetary Unionâs overall agenda, developed over the past five years and making the international economy less vulnerable to shocks linked to a single dominant currency. The European Council will also address these issues, as well as challenges related to the EU climate change objectives, Covid-19 and the external relations with the EUâs Southern Neighbourhood. Euro Summit Agenda EU Council Agenda |
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Agenda for next week Monday 7 December: RiskMinds International: Global Risk Regulation Virtual Summit. EBF Senior Director Prudential Policy & Supervision Gonzalo Gasos speaking Tuesday 8 December: European Council: Horizontal Working Party on Cyber Issues meeting EBF Information Sharing Task Force virtual meeting EBF BSC-Banking Union Section virtual meeting with DG FISMA Wednesday 9 December: QED virtual conference on the MiFID/MiFIR review: Data & Consolidated Tape EBF Brexit Task Force virtual meeting Thursday 10 December: Friday 11 December: Oliver Wyman webinar with the 30% Club: Women and Finance in A World With COVID-19 EBF RBA/KYC Task Force virtual meeting EBF Information Sharing Task Force virtual meeting EBF AML & Financial Crime Committee virtual meeting For more events check the EBF planning calendar HERE *All events take place in Brussels unless stated otherwise |
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FROM THE MEDIA this week
Reuters: EBA revives relief measures for Covid-hit loans
European Union regulators have revived guidance to allow banks to grant a new round of loan repayment holidays to coronavirus-hit customers without triggering a big surge in provisioning that would crimp the flow of credit, Reuters reported. The European Banking Authority (EBA) said that, due to the second wave of COVID-19 infections, guidance for banks that expired on Sept. 30 was being reactivated until March 31, 2021. Read more
FT: European bank bonds rally on stronger economic prospects
Growing optimism about Europeâs economic recovery has pushed investors to buy bank bonds, lowering lendersâ financing costs to levels last seen before national lockdowns began sweeping the continent, teh Financial Times reported. Read more (âŹ)
Politico: Michel Barnier on a tight leash in high-stakes Brexit endgame EU countries are getting so nervous about concessions in the final phase of the Brexit negotiations they've reminded the EU's chief negotiator Michel Barnier not to cross the bloc's red lines just to clinch a deal with the U.K. "We are millimeters from the bottom line of the mandate. For some issues, we're even on the red line, and we don't want to cross it," one EU diplomat told Politico. Read more
DW: Eurozone finance ministers agree on bailout fund reform
The long-awaited reforms come against the backdrop of the second wave of the COVID-19 pandemic, reported German broadcaster Deutsche Welle (DW). The main aim is to ease access to credit lines for member states during times of financial and economic crisis. Read more
Bloomberg: Bundesbank deputy says not time for bank dividend return
Bundesbank Vice President Claudia Buch says now isnât the time for the ECB to lift its de facto ban on banks paying dividends, according to an interview in Frankfurter Allgemeine Zeitungâs Sunday edition, Bloomberg reports. Read more El Confidential Yves Mersch |
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FROM THE MEMBERS this week
FFI: Finnish financial services in the UK cut off at the end of the year
âAlthough the looming Brexit deadline of 31 December will go by unnoticed by most Finns, it may have dramatic effects on permanent UK residents who use Finnish financial services. After the British exit from the European Union, Finnish financial sector entities must obtain a licence to provide services in the UK, Finance Finland reports (FFI). Read more
UK Finance: Ethical principles for advanced analytics and AI UK Finance published a set of ethical principles for advanced analytics and artificial intelligence in financial services. These can serve as a resource to help firms implement these technologies responsibly and safely. Read more
LBA: S&P AAA rating confirmed again â outlook still stable In its research update at the end of November 2020, the international rating agency Standard & Poor's (S&P) once again confirmed Liechtenstein's country rating of AAA, the best rating possible. The Liechtenstein Bankers Association (LBA) is proud that the outlook remains stable, despite the challenges in overcoming the COVID-19 crisis. Read more
Bankenverband: Five economic policy proposals to go beyond Covid-19 "Uncertainties for 2021 are great, but we see good chances that the economic engine will start up again next year and that the recovery will pick up speed again,â said Christian Ossig, CEO of the Association of German Banks (Bankenverband). Read more (DE)
NVB: Banksâ support to businesses increases to 30.6 billion euros
Since the Corona crisis outbreak in March, the Dutch banks have, in addition to the support package by the government, offered temporary financial relief to 169,000 entrepreneurs. A total of 30.6 billion euros has been made available (an increase from 28 billion four weeks ago) through the postponement of repayments and the provision of additional credit to companies, the Dutch Banking Association (NVB) reports. Read more |
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FROM THE INSTITUTIONS this week
WEF: The global Covid-19 FinTech market rapid assessment study
The World Economic Forum has released results of a study on how the fintech industry has been impacted by COVID-19. This study finds that since the onset of the pandemic, the fintech industry has seen increased growth. In 2020, firms saw an average rise of 13% compared to 11% growth in previous years. Read more
ECB: Payment behaviours are gradually changing
Cash remains the most popular retail payment instrument in the euro area, although its use is declining gradually, the latest study on payment behaviours shows. Consumers are increasingly using cashless payments and the pandemic seems to be accelerating this trend. Read more
Eurogroup reaches agreement on European Stability Mechanism reform
EU finance ministers agreed on the reform of the European Stability Mechanism (ESM) and the early introduction of a common backstop to the Single Resolution Fund in 2022. The agreement is a crucial step towards a stronger and more resilient European banking sector. Read more
BIS: Heads of Supervision endorse direction of Basel Committee work
The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, has endorsed a coordinated approach to mitigating Covid-19 risks to the global banking system. The global banking system entered the Covid-19 crisis with ample capital and liquidity, thanks to the Basel III reforms implemented after the Great Financial Crisis (GFC). A robust regulatory framework underpins confidence in banks' soundness and helps to maintain a level playing field internationally. Read more
European Parliament: Briefing on Digital Services Act
The European Parliament has published a briefing on the Digital Services Act and its pre-legislative synthesis of national, regional and local positions. It suggests that partner organisations would like the following main considerations to be reflected in the discussion of the forthcoming Digital Services Act (DSA): Modernisation of EU legislation on platforms Regional and national stakeholders stress that it is high time to update and harmonise EU rules on online platforms, pointing out that the DSA should address the legal uncertainty and administrative burden stemming from the fragmentation of Union legislation. Read more |
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FROM THE EUROPEAN BANKING FEDERATION this week
âBuild Back Betterâ with strong, resilient and forward-looking banks
Covid-19 has accelerated the urgency and pace of transformation needed across the banking sector as it continues to support households and businesses during these challenging times. Recognizing this need, the banking sector is keen to help society âBuild Back Betterâ and make itself fit for the future in the post-pandemic era. At EY and the European Banking Federation we believe that a strong, resilient and forward-looking banking sector is vital to our growth prospects in Europe. Therefore, we are pleased to announce a Knowledge Partnership that will feed and drive multi-stakeholder dialogue between regulators, supervisors, banks, banking associations and content experts. Read more Banking in Europe: data confirms banks reduced physical presence The European Banking Federation published Banking in Europe: Facts & Figures, its annual update on the banking sector in Europe. The publication shows that the contraction in the European banking sector, both in terms of staff numbers and branches, continued in 2019 as banking customers have continuously, widely and enthusiastically, adopted electronic payments as well as online and mobile banking. Read more EMMA6 - Donât become a link in the money laundering chain On Tuesday, law enforcement authorities from 26 countries and Europol announced the results of the European Money Mule Action âEMMA 6â, a worldwide operation against money mule schemes. Between September and November 2020, EMMA 6 was carried out for the sixth consecutive year with the support of the European Banking Federation (EBF), FinTech FinCrime Exchange, INTERPOL and Western Union. As a result, 4 031 money mules were identified alongside 227 money mule recruiters, and 422 individuals were arrested worldwide. Read more Microsoft and EBF Cloud Banking Forum guidance on exit strategies As part of the EBF cloud banking series on LinkedIn, the EBF Cloud Banking Forum and Microsoft propose guidance for Cloud exit strategies and the testing of exit plans. Read more Cloud Banking at EBF
EBF Innovation & Cyber Thursdays Series - Highlights
Did you miss our Digital and Innovation Thursdays? No worries! You can watch now all the recordings and hear from our European and international experts, policymakers and stakeholders all about Cybersecurity, European Data Economy and Open Finance, Cloud and Digital Currencies, Payments and much more. Read more |
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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 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. |
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