EBF MORNING BRIEF Thursday 18 June 2020 Good morning. Here the top news stories and events in European banking, financial regulation and EU policy, 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: Regulators stand ready to help banks further in pandemic Banks will be given sufficient time to replenish capital buffers dented by heavier lending and rising loan losses during the COVID-19 pandemic, Reuters reports citing global banking regulators from the Basel Committee. The Basel Committee said on Wednesday that regulators could offer more relief to the sector if needed. The Basel Committee, supervising Asia, the United States and Europe said a “measured” drawdown of capital and liquidity buffers in the current time of stress was appropriate. Read more Law360: Finance system heavily exposed to climate risk, ECB warns European Union banks rely heavily on carbon industries and will face huge losses if the sector moves away from investing in companies that create pollution, the bloc's central bank warned according to Law360. “On average, 15% of significant institutions’ exposures are to the most carbon-intensive firms, Andrea Enria, Chair of the SSM, said, referring to Europe’s biggest banks. The problem is that climate risk tends to materialize over the long term while banks typically look at risks over the coming year and regulatory requirements reinforce this short-sighted approach, Enria added. Read more Reuters Reuters: Bad loans to hit Eastern Europe's banks beyond 2021 Central, Eastern and Southeastern European banks are set to be hit by a tide of bad loans that may last beyond 2021, according to a report from the Vienna Initiative reported by Reuters. Banks were better prepared than during the prior financial crisis in 2008 to deal with the flow of non-performing loans in the wake of the COVID-19 pandemic, the report found. Read more Bloomberg: HSBC follows Deutsche Bank in reactivating job cuts Europe’s largest banks are resuming plans to cut thousands of jobs after putting dismissals on hold to show support for employees affected by the coronavirus outbreak across the continent, writes Bloomberg. HSBC, Deutsche Bank, Credit Suisse and Unicredit have all reported moving forward with their plans. Read more FT: Bundesbank chief set to ease ECB legal battle The head of Germany’s central bank has sought to defuse a clash between the country’s highest court and the European Central Bank by suggesting three ways the impasse over eurozone sovereign bond purchases could be resolved, says the FT. Read more (€) OMFIF MilanoFinanza (IT) |
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EBF MEMBERS IN THE NEWS Croatia: HUB conducted a survey on financial literacy for teenagers For the first time in Croatia, the Croatian Banking Association and Štedopis, Institute for Financial Education, conducted a survey on financial literacy for teenagers, which shows teens knowledge and behaviour, but bad attitudes towards money. Read more (HR) Germany: Europe's answer to Libra Will we soon be paying with a digital Euro? In a new position paper, the Association of German Banks shows how Europe should react and under which conditions a digital euro can be created. Read more (DE) UK: What the MiFIR regime means for UK-EU cross-border services In collaboration with Clifford Chance, UK Finance has published a briefing discussing how the equivalence regime for cross-border services under the Markets in Financial Instruments Regulation (MiFIR) operates and the implications for UK and EU firms. Read more Czechia: Development of the Czech mortgage market in May 2020 The Czech Banking Association reports the volume of mortgage loans in May 2020 reached CZK 16.5 billion. This is a decrease of 7.5 percentage points compared to April. The decline looks significant. But it's not really a drama. Read more (CE) |
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FROM THE INSTITUTIONS Commission: White Paper on foreign subsidies in the Single Market The European Commission has adopted a White Paper dealing with the distortive effects caused by foreign subsidies in the Single Market. The Commission now seeks views and input from all stakeholders on the options set out in the White Paper. The public consultation, which will be open until 23 September 2020, will help the Commission to prepare for appropriate legislative proposals in this area. Read more EBA: Review of the stress tests and the resilience of DGSs The European Banking Authority (EBA) published its first peer review of stress tests and the resilience of the Deposit Guarantee Scheme (DGSs). The purpose of the peer review was to assess the resilience of DGSs based on the results of the DGS stress tests and to identify good practices and areas for improvement. Read more ECB: The impact of the coronavirus on our economy The lockdown measures put in place to contain the coronavirus pandemic are having a significant impact on euro area travel. The crisis has also been affecting financial markets. The latest ECB Economic Bulletin analyses the economic fallout of the pandemic. Read more EBA makes changes to its Q&A tool The European Banking Authority (EBA) has expanded the scope of its Questions and Answers (Q&A) process and tool to enable the submission of questions on the Anti-Money-Laundering Directive and Consumer Protection legislation under the EBA’s scope. Going forward, submitted questions, subject to meeting the prescribed criteria, will be published on the EBA website while their answers are being prepared. Read more EDPS: Opinion on Strategy for Data This Opinion presents the EDPS view on the Data Strategy as a whole, as well as on certain specific aspects, such as the notion of “public good”, Open Data, use of data for scientific research, data intermediaries, data altruism, international data sharing and others. Read more BIS: Covid-19: Fiscal response in advanced market economies Factors such as the level of income and the strength of the social safety nets and automatic stabilisers influenced the size and composition of the fiscal response to Covid-19 reports the Bank for International Settlements 2020 Bulletin. Read more |
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EMQ 2020 GRAND FINAL: Find out who won this year! The European Money Quiz took place across 22 countries this year. 29 finalists form the national competitions shared their experience with financial literacy yesterday at 14:00 CET during a Grand Final live show to celebrate the end of the 2020 European Money Quiz. The audience then joined the Champions to play an interactive quiz about personal finances. The winners of this quiz were representative of the European diversity: the podium was shared by competitors from Spain, Latvia and North Macedonia. Watch the replay HERE |
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The European Banking Federation and fTLD Registry Services (fTLD) are partnering to educate the European banking sector about the cybersecurity role .BANK plays in protecting banks against Business Email Compromise (BEC) scams, phishing and spoofing attacks that lead to breaches, identity theft and financial fraud. fTLD administers the .BANK domain and the EBF has served on its Advisory Council since 2013. To learn more about the security benefits of .BANK, visit https://www.register.bank/ebf/ or contact fTLD at EBF@fTLD.com. |
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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. 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. |
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This newsletter is published by the EBF Mediacentre. For questions or suggestions contact mediacentre@ebf.eu Recommend the EBF newsletters to a colleague. Click here to sign up! European Banking Federation Avenue des Arts 56, B-1000 Brussels, Belgium |
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