FROM THE MEDIA

FT: Loan-loss provisions in the spotlight at European banks

As the coronavirus lockdown wreaks havoc on global economies, one number will take centre stage when British and European banks start reporting first-quarter results this week: loan-loss provisions. Investors are expecting these charges to surge to, and even beyond, levels not seen since the financial crisis, piling pressure on lenders’ already fragile business models, reports the Financial Times. Analysts estimated loan-loss provisions could quadruple or more in the first three months of the year, while bank profits could fall by 50 per cent on average over the whole of 2020. Read more (€) SCMP

Bloomberg: EU to widen gap with U.S. banks with loss provisions

When European banks report results in the weeks ahead, they won’t match their U.S. counterparts in setting aside the massive provisions needed to cover expected losses from the pandemic, says Bloomberg. They can’t afford it. Ten of the region’s largest lenders would have to set aside $152 billion this year if they were to parallel the rate of the top U.S. banks. That would drive them all into the red. Read more

FT: EU divided over reforms to maligned fund performance rules

EU lawmakers and regulators are at loggerheads over how to reform wildly misleading fund performance disclosures, dealing a blow to fund managers and consumer groups hoping for a reprieve from the much-maligned rules, reports the Financial Times. Read more (€)

WSJ: Deutsche Bank says results will beat expectations

Deutsche Bank said that it will beat analyst expectations and report a first-quarter profit as higher revenue and lower expenses have helped it offset a €500 million charge it is taking for credit losses resulting from the coronavirus outbreak. says the Wall Street Journal. Read more (€)

PYMTNS: US banks cautious about making European loans

Banks in the U.S. are taking a cautious approach when it comes to extending loans to businesses in Europe, reports PYMNTS. The coronavirus pandemic has caused big banks like JPMorgan, Goldman Sachs and Bank of America to reduce the size of loans or cancel funding talks. Read more FT(€)

EBF MEMBERS IN THE NEWS

FROM THE INSTITUTIONS

European Commission: Future relationship negotiations with the UK

Michel Barnier has given a press conference on the status of the negotiations, calling it disappointing. He said that a “smart agreement” would be needed to prevent a double economic hit of the Covidv-19 crisis and a ‘hard’ Brexit. Read more
 

European Parliament: Banking Union: Corona crisis effects

The European Parliament has published briefings to support members of the Banking Union Working Group. Read more

SRB: Completing the crisis management framework

Elke Koenig, Chair of the SRB, has published an article entitled “Completing the crisis management framework: a centralised administrative liquidation tool for banks.” The SRB finds that the harmonization of insolvency regimes for banks is a necessary end-goal.  Read more

EIOPA: Understand your insurance coverage during Covid-19 Outbreak

EIOPA has published a consumer guide helping to understand the insurance coverage during Covid-19. Read more

BIS: Buffering Covid-19 losses - the role of prudential policy

BIS has published a report on buffering Covid-19 losses and the role of prudential policy. By allowing banks to run down some of their buffers, policymakers are sending a strong signal about their resolve to lessen the economic fallout from the pandemic. Read more

European Commission calendar for this week

Find out more about the European Commission's engagement and activities for the upcoming week. Read more
 

European Central Bank weekly schedule

Find out more about the ECB's engagements and activities for the upcoming week. Read more
 

EU Parliament agenda

Find out more about the Parliament's engagements and activities for the upcoming week. Read more

ABOUT THE EUROPEAN BANKING FEDERATION
 

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