EBF MORNING BRIEF Monday 13 November 2023 Good morning. Here are the top news stories and events in European banking, financial regulation and EU policy, brought to you by the European Banking Federation.
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FROM THE MEDIA
Reuters: Loans linked to ESG face overhaul by under-pressure banks
Corporate loans whose costs are linked to environmental, social, and governance (ESG) goals are being redesigned by banks in response to rising regulatory pressure and to inject more credibility into the market. Banks are including more penalties in sustainability-linked loans that raise the borrowing cost if a company misses targets, Reuters writes. Read more
FT: ECB will not start cutting rates in ‘next couple of quarters’
The European Central Bank (ECB) will not begin cutting rates for “the next couple of quarters”, its president Christine Lagarde said. Lagarde told the Financial Times (FT) that eurozone inflation would come down to its 2 percent target if interest rates were kept at their current levels for “long enough”. Read more
Bloomberg: BoE stress tests to include worse shocks than COVID
According to Bloomberg, the UK’s largest banks and asset managers will be tested against a hypothetical shock worse than last year’s gilt market spiral or the coronavirus pandemic, as part of the Bank of England (BoE)’s efforts to understand how non-bank financial institutions can amplify systemic stress. “The exercise is not a test of the resilience of the individual firms participating. Published materials will not provide information on any individual firms,” the Central Bank said in a statement. Read more |
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MAIN EVENTS Council Working Party on Tax Questions (Direct Taxation) Council Horizontal Working Party on Cyber Issues |
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Launch of the Report of the
C-ESG Risk Roundtable Data Workstream
Wednesday 29 November 2023 10 am CET - ONLINE
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| | Banks do recognize that environmental factors could be a source of financial risk.
While some will need to be addressed at the level of individual organisations,
others will benefit from collaborative approaches. To further strengthen the dialogue within the banking sector and to facilitate the discussion with the European Central Bank (ECB), a high level Environmental, Social, and Governance Risk Roundtable (C-ESG Risk RT) was set up by the European Banking Federation (EBF) with the participation of 13 European banks. The EBF and ECB are acting in observing capacity. On 29 November 2023, we will be launching the first report resulting from the discussions and deliberations of the C-ESG Roundtable Data Workstream. Join us, as we will be discussing with the European Central Bank, the European Banking Authority and
the banking industry the reports ‘findings, identified practices, challenges as well as
targeted solutions for selected metrics and possible next steps in addressing data
and methodological uncertainties associated with disclosures against the Implementing Technical Standards (ITS) on prudential disclosures ESG risks (Pillar 3). |
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The report will be available on the EBF website on 29 November, after the launch event |
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FROM EBF MEMBERS
Finance Finland: The financial sector is one of the biggest taxpayers
The financial sector was one of the biggest taxpayers in Finland, as per the 2022 tax data released by the Tax Administration. "The corporate taxes paid by financial sector companies amounted to 11.2% of all corporate tax in Finland. This speaks firmly against the claims that the sector is undertaxed”, Finance Finland’s CEO Arno Ahonsniemi comments. Read more
LBA: Strengthening of the Executive Committee
The Liechtenstein Bankers Association (LBA) has appointed Stephanie Wickihalder as Deputy Managing Director. She will start on 1 December 2023 and will form the Executive Board together with Simon Tribelhorn. Her area of responsibility will include digitalization topics in particular, as well as building bridges and increasing cooperation with fintechs. Read more
CBA: Inflation rose to 8.5% in October, slightly above the expectations
October inflation rose from 6.9% to 8.5%. As noted by the Czech Banking Association (CBA), the year-on-year increase was mainly driven by the statistical impact of last year's low comparison base, when electricity prices dropped significantly after the introduction of a household savings tariff. Read more (CZ) |
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FROM THE INSTITUTIONS
ECB: Scope Ratings within Eurosystem Credit Assessment Framework
The European Central Bank (ECB) Governing Council decided to accept the credit rating agency Scope Ratings GmbH as a new external credit assessment institution (ECAI) for the purposes of the Eurosystem Credit Assessment Framework (ECAF). Read more
BIS: Profitability, valuation and resilience of global banks - a tight link
In its latest paper, the Bank for International Settlements (BIS) derives a tight link between the profitability, valuation, and resilience of global systemically important banks (G-SIBs). It also documents that low-valued G-SIBs maintain management buffers by reducing risk-weighted assets and cater to investors by paying out their entire profits. Read more ESMA: Gudelines on MiFIDII remuneration requirements The European Securities and Markets Authority (ESMA) published the list of competent authorities that comply or intend to comply with ESMA's guidelines on certain aspects of MiFID II remuneration requirements 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.
For questions or suggestions contact v.barbieri@ebf.eu
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