FROM THE MEDIA

FT: ECB urged to give more weight to housing in inflation fight

In an interview with the Financial Times, the chief economist of the European Central Bank has called for housing costs to be given more weight in the way inflation is measured in the eurozone. Philip Lane’s desire to shake up how inflation is calculated seems certain to fuel suspicion that the ECB is moving the goalposts to make its main target easier to hit after years of falling short. In the interview, Mr Lane also listed several factors that could lift inflation towards the central bank’s objective, including new trade tariffs, higher energy costs and rising wages among workers, all of which put pressure on companies to raise prices. Read more

Bloomberg: Why East Europe needs higher interest rates

Interest-rate decisions are due this week from Poland, the Czech Republic and Romania. All states are likely hold fire to prioritize economic growth, which has slowed across the region though remains strong, writes Bloomberg. Several countries in Eastern Europe also are coping with strong inflation which also would be a reason to increase borrowing costs. Read more

Politico: UK hardens rhetoric ahead of trade talks with Brussels

British Prime Minister Boris Johnson is expected to set a hard-line tone toward the EU in a speech Monday as the two sides prepare to enter the next phase of trade talks. Setting out his demands for negotiations in a speech in London, Johnson will say the U.K. won’t accept alignment with EU legislation or accept judicial oversight from the EU’s top court, The Times reported Sunday. Read more FT(€) BBC

FT: EU bank regulators lay out tougher doomsday stress test

European regulators will this year test the region’s banks against the most severe post-Brexit economic conditions ever envisaged, including a contraction of more than 4 per cent in the bloc’s economy by 2022, report various media, including the FT. The European Banking Authority said that this year’s assessment of the resilience of 51 banks across the EU, still including UK institutions as it will be carried out during the Brexit transition period, would also factor in “a recession coupled with low or negative interest rates for a prolonged period”. Read more (€) Reuters RTE

MAIN EVENTS today

• ENISA conference: Cybersecurity standardization conference

• Start of the three-day Global CIO Banking Summit, Dublin

*All events take place in Brussels unless stated otherwise

FROM THE INSTITUTIONS

ESMA: Update on governance & reporting obligations following Brexit

The European Securities and Markets Authority (ESMA) published a statement to clarify issues relating to its governance and the reporting obligations for UK entities from 1 February 2020 following the United Kingdom’s (UK) withdrawal from the European Union (EU).

SRB statement: UK withdrawal from the EU

The EU’s banking resolution authority, the Single Resolution Board (SRB), outlined what it expects will happen after the UK formally leaves the EU. Read more

OECD: Digital Taxation

The international community reaffirmed its commitment to reach a consensus-based long-term solution to the tax challenges arising from the digitalisation of the economy, and will continue working toward an agreement by the end of 2020, according to the Statement by the Inclusive Framework on BEPS released by the OECD. Read more

European Commission calendar for this week

Find out more about the 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
 

European Parliament agenda

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

EBF MEMBERS IN THE NEWS

The Netherlands: UK leaves the EU - statement

After 45 years of EU membership, the United Kingdom left the European Union. From 1 February 2020, the transition period began, in which the EU and the UK must negotiate the future relationship in the form of a trade agreement, based on the previously adopted Political Declaration. On behalf of the EU, the negotiations will be led by chief Brexit negotiator Michel Barnier. Negotiator on behalf of the UK is European adviser David Frost. All European rules will still apply to the UK during the transition period. However, the UK will not have a say in European institutions. The UK will also participate in the internal market. Read more (NL)

Luxembourg: Brexit - Always look on the bright side of life

The United Kingdom (UK) left definitively and officially the European Union (EU). When looking at Brexit over the course of the past 40 months, the bright side may certainly be considered that the endless cliffhanger of Brexit came to an end. Read more

Czechia: CBA comments on the banking statistics for December 2019

The volume of bank loans to residents reached CZK 5.607 trillion at the end of December 2019, down by 475 billion compared to the previous month. We could see a similar development a year ago. In 2020, however, we expect client loans to grow by about 6%. Read more (CE)

FROM THE EBF

Breakfast event
Wednesday 19 February, 8:00am to 9:30am
European Parliament 

Money laundering and financial crime 
Better addressing the threats to European security

The new European Commission, European Parliament and Council have put combating money laundering high on their agendas. While the Commission reports released in July give some indicative hints, it remains to be seen which reforms the Commission will finally propose. Therefore we would like to present and discuss the respective proposals of:

• Sebastian Fiedler, Chair of the Federation of German Police Officers (BDK),

• Wim Mijs, Chief Executive Officer, European Banking Federation (EBF)

• Sven Giegold, Economic and Financial Spokesperson of Greens/EFA

Registration: If you want to participate in the breakfast event at the European Parliament in Brussels, please register by 17 February indicating your name, organisation and contact details at sven.giegold@ep.europa.eu

Link: https://sven-giegold.de/aml-breakfast-event-ep/

ABOUT THE EUROPEAN BANKING FEDERATION
 

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from 45 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.