EBF WEEKLY + FINANCIAL REGULATION AGENDA
for the week starting Monday 26 February 2024 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 Recommend the EBF newsletters to a colleague. Click here to sign up! |
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FROM THE MEDIA
Reuters: ECB reports record loss for 2023 as rate hikes bite
The European Central Bank (ECB) reported a record annual loss for 2023 and said further losses were likely as its aggressive interest rate hikes forced it to pay out billions of euros to banks. Once all risk provisions are wiped out, a loss of 1.3 billion euros will be carried forward to be offset against future profits, Reuters writes. Read more
FT: The limits of splitting UK and EU financial services
According to an opinion piece published by the Financial Times (FT), the latest decision on clearing is a welcome sign of pragmatism and improving relations between London and Brussels. Both sides are beginning to realize that fragmenting their highly interconnected cross-border financial services trade is neither easy nor desirable. Read more
CoinDesk: Bitcoin ETF approval comparable to 'naked emperor’s new clothes,’ ECB officials say
The approval of spot bitcoin ETFs and the resulting price rally are not proof that the cryptocurrency is a good investment, two officials at the European Central Bank (ECB) said in a blog post seen by CoinDesk. Bitcoin’s price may rise in the short term, but there is no “fair value” from which serious forecasts can be made, they wrote. Read more |
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FINANCIAL REGULATION AGENDA for next week
Monday 26 February
Council Working Party on the Environment Tuesday 27 February Council Working Party on Tax Questions (Direct Taxation) Council Working Party on the Environment Wednesday 28 February Council Horizontal Working Party on Cyber Issues
Thursday 29 February
Council Working Party on Tax Questions (Indirect Taxation) Council Working Party on the Environment
Friday 1 March
Council Horizontal Working Party on Cyber Issues Council Working Party on the Environment |
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FROM EBF MEMBERS
Finance Finland: Corporate sustainability needs EU-level regulation
Finance Finland considers it essential to regulate corporate sustainability due diligence at the EU level. “Harmonised regulation would help companies allocate their responsibility work resources more effectively. Banks and insurers would also have better access to relevant information with which to assess the responsibility of potential targets of investment and insurance”, says Finance Finland’s CEO Arno Ahosniemi. Read more
Febelfin: Transition to a more sustainable housing market
To meet international standards, the Belgian housing market must become significantly more sustainable. As part of Batibouw, the trade fair for construction and renovation professionals, Febelfin intends to highlight the various financing solutions it wishes to promote, while also suggesting a number of policy recommendations. Read more (FR)
Finance Denmark: There are no above-normal earnings in banks
"In a recent post, political spokesman Pelle Dragsted (EL) criticises the banks' increased earnings due to rising interest rates. But this is not a fair criticism. After a long period of extremely low-interest rates, the banks' interest margin is now back to a more normal level. Furthermore, the banks' earnings are on par with other Danish companies", says Finance Denmark CEO Ulrik Nødgaard. Read more (DK) |
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FROM THE INSTITUTIONS
ECB: ETF approval for Bitcoin – the naked Emperor’s new clothes
Bitcoin has failed in the promise to be a global decentralized digital currency. Instead, it is used for illicit transactions. A post by the European Central Bank (ECB) debunked the false promises of Bitcoin and warned of the social dangers if not effectively addressed. Read more
SRB: A more complete toolbox for crisis management in the EU
The current framework works well. However, CMDI offers a great opportunity to legislators to make the crisis management toolkit more flexible, increasing trust and confidence in the crisis management framework. This is the key message of a Eurofi article by Dominique Laboureix, Chair of the Single Resolution Board (SRB). Read more
BIS: Risk-based pricing in competitive lending markets
When banks compete, firms get cheaper loans. But banks’ default risk stays the same. In more competitive markets, banks earn less interest income relative to their credit risk. Does competition make banks more fragile? The Bank for International Settlements (BIS) responds in its latest working paper. Read more |
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FROM THE EBF
New EBF Vacancies! Work with us!
Visit our Vacancies page to learn more about the opening positions at the EBF. Read more |
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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. The federation 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. Website: www.ebf.eu |
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This newsletter is published by the EBF Mediacentre.
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