EBF WEEKLY + FINANCIAL REGULATION AGENDA
for the week starting Monday 26 April 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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EC/OECD-INFE joint project to develop a financial competence framework for the EU |
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On Monday 26 April, the EC and the OECD/INFE will launch a joint project to develop a financial competence framework for the EU. The new project will reflect recent and emerging issues, including financial digitalisation and sustainable finance. EC and the OECD/INFE want to establish common terminology and framework at the EU level for informing the development of financial literacy policies. EBF CEO Wim Mijs together with Commissioner McGuinness, Professor Annamaria Lusardi, MEP Susana Solís Pérez, MoneyWise Platform Head Olaf Simonse and Bruegel Deputy Director Maria Demertzis, will take part in a panel discussion organised by the EC/OECD-INFE for the virtual launch of the project. Read more Agenda |
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FINANCIAL REGULATION AGENDA for next week Monday 26 April: Tuesday 27 April : Thursday 29 April: -
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EBF's Chief Economic Group virtual meeting with IMF as guest speaker
For a full-year overview of key financial regulation events: click here |
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FROM THE MEDIA this week
CNBC: European Central Bank holds fire ahead of crunch June meeting
The European Central Bank decided on Thursday to keep its policy unchanged while market players look for clues on when its massive monetary stimulus might start to be wound down. “Preserving favorable financing conditions over the pandemic period remains essential to reduce uncertainty and bolster confidence, thereby underpinning economic activity and safeguarding medium-term price stability,” ECB President Lagarde said at a press conference on Thursday. Read more
FT: The eurozone is taking the lead in testing the digital currency waters
Public consultation by the European Central Bank is one step ahead of counterparts but it may face a more sceptical audience, writes FT's Martin Sandbu. Last week the European Central Bank published the responses to a completed public consultation, itself the follow-up to a concept paper its task force published in October. Fabio Panetta, a member of its executive board, attended a hearing in the European Parliament. This puts the ECB a step ahead of its major counterparts in engaging the public. Read more (€)
Reuters: UK to review bank rules as London looks for post-Brexit boost
Britain launched on Tuesday an independent review of banking capital and proprietary trading rules that is set to pit banks against their regulator as London’s powerful financial industry looks to boost its global competitiveness after Brexit, writes Reuters. Since the start of 2019, Britain requires HSBC, Barclays and other banks to “ring-fence” the retail arms of their operations with capital to shield them from any losses in their riskier, investment banking arms, after taxpayers had to bail out lenders during the financial crisis. Read more
WSJ: Anti-money-laundering prosecution deals setbacks to European banks
Failures to police money laundering procedures hit two major banks in Europe, dealing a further setback to a region that has struggled to stop financial institutions from serving as conduits for illicit transactions. ABN Amro Group NV said Monday that it had agreed to pay around $575 million to settle a criminal case accusing the Dutch lender of violating money-laundering and terrorism financing regulations repeatedly for several years, WSJ writes. Also Monday, the head of Denmark’s largest bank, Danske Bank A/S, resigned after he was named as a suspect in the ABN Amro case. Read more (€)
Reuters: Column: E-euro starts to take shape
The promised digital euro started to take shape this week and signals from Frankfurt may offer some relief to nervy commercial banks worried about being sidelined by the latest disrupter. With the “hands off” pandemic accelerating the demise of physical cash, and private-sector crypto and stablecoins threatening to invade the space, the pledge last year of a digital euro within five years came before the European Central Bank knew what exactly it would be or how it would function, Reuters writes. Read more |
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FROM EBF MEMBERS this week
UK Finance: Do we really need MREL?
'Do we really need MREL?' Harps Sidhu, Senior Advisor, Financial Services Group, Grant Thornton discusses whether the minimum requirement for own funds and eligible liabilities (MREL) first introduced in 2016, is a help or a hindrance. Read more
CBA Survey: Czechs and Housing Financing 2021
Last year was a record in terms of the volume of mortgage loans and the beginning of 2021 is promising. The interest in mortgages was also confirmed by a survey by the Czech Banking Association (CBA). According to this, 16% of Czechs currently have a mortgage and 13% plan to do so. Read more (CE)
SBA: The aim is for banks to be inspired by innovation
Retail banking is at the heart of the joint work of Professor Andreas Dietrich of the Institut für Finanzdienstleistungen Zug (IFZ) and the Swiss Bankers Association (SBA). The IFZ and the SBA have recently entered into a partnership in this area, the first concrete manifestation of which will be the IFZ's "Innovation in Banking" conference on 8 June. In this interview, Andreas Dietrich discusses the cooperation between IFZ and the SBA and the challenges facing retail banking. Read more (FR)
AEB: Foreword by José María Roldán to the book 'La sostenibilidad y el nuevo marco regulatorio e institucional de las finanzas sostenibles'
'Without common and clear rules we cannot move towards a fairer and more sustainable economy.' The Spanish Banking Association (AEB) president, José María Roldán, explains this in the foreword to the book by Arturo Zamarriego and José María López. Read more (ES)
Bankenverband: Financing the necessary awakening of the economy
The banks are robust. But in order to finance the necessary awakening of the economy, politicians, supervisors, and the ECB must examine how the financial sector can be further strengthened, says Bankenverband president Hans-Walter Peters. Read more |
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FROM THE INSTITUTIONS this week
ECB Monetary Policy Provisions
The Governing Council of the European Central Bank (ECB) have decided to reconfirm its accommodative monetary policy stance. A few key points: 1) 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. 2) The Governing Council expects purchases under the PEPP over the current quarter to continue to be conducted at a significantly higher pace than during the first months of the year. 3)Net purchases under the asset purchase programme (APP) will continue at a monthly pace of €20 billion. Read more
Europe fit for the Digital Age: Commission proposes new rules and actions for excellence and trust in Artificial Intelligence
The Commission proposes new rules and actions aiming to turn Europe into the global hub for trustworthy Artificial Intelligence (AI). The combination of the first-ever legal framework on AI and a new Coordinated Plan with Member States will guarantee the safety and fundamental rights of people and businesses, while strengthening AI uptake, investment and innovation across the EU. New rules on Machinery will complement this approach by adapting safety rules to increase users' trust in the new, versatile generation of products. Read more
BIS: Evaluating the effectiveness of Basel III during Covid-19 and beyond
The Bank of International Settlements (BIS) has published a speech by Pablo Hernández de Cos, Chair of the Basel Committee on Banking Supervision and Governor of the Bank of Spain, which evaluates the effectiveness of Basel III during Covid-19 and beyond. Read more
Remarks by Executive Vice-President Dombrovskis at the informal ECOFIN press conference
Executive Vice-President Dombrovskis noted that the EC has received information from all but one of the EU27 on national recovery and resilience plan intentions. However, he emphasised that progress on formal submission varies. Furthermore, he highlighted that the financing for Next Generation EU will make the EU one of the largest euro-denominated issuers, particularly of green bonds. Read more
Remarks by Commissioner Gentiloni at the Eurogroup press conference
Following the meeting of the Eurogroup, Commissioner Gentiloni has highlighted key discussion points. He noted that an agreement on a backstop for the single resolution fund to enter into force next year, but emphasised that the Banking Union is incomplete. The Commission is strongly committed to agreeing on a work plan. Read more |
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FROM THE EUROPEAN BANKING FEDERATION this week
Hungary, Ireland, and Slovakia took the podium in the European finals
13-15-year-old students from secondary schools across Europe this week had their financial literacy challenged in the European Money Quiz’s Final, an online competition hosted by the European Banking Federation that brought to an end this year’s quiz season. The European Money Quiz attracted nearly 50 000 students this year via the Kahoot platform. The quiz was launched in 2017 as an initiative to promote financial education by national banking associations in Europe, under coordination by the European Banking Federation. 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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