EBF MORNING BRIEF Thursday 29 April 2021 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. Recommend the EBF newsletters to a colleague. Click here to sign up! |
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FROM THE MEDIA Bloomberg: Europe’s banks are no longer as afraid of economic meltdown European banks are joining U.S. peers in saying the pandemic won’t wreak as much havoc in their balance sheets as feared. Almost all big European lenders to report first-quarter earnings so far have bolstered profit by stashing less money for doubtful loans than last year or by freeing up reserves. Deutsche Bank AG, Banco Santander SA and Lloyds Banking Group Plc are among the firms to argue that rosier economic prospects justify such moves, Nicholas Comfort from Bloomberg reports. Read more Reuters: The great exit: central banks line up to taper emergency stimulus The Bank of Canada set the taper ball rolling last week, becoming the first major central bank to cut back on pandemic-era money-printing stimulus programmes. So who’s next? The big guns of central banking - the U.S. Federal Reserve, European Central Bank and the Bank of Japan - won't officially pare stimulus for a while, a message the BOJ reinforced on Tuesday and one the Fed is expected to reiterate on Wednesday, Reuters writes. Read more Finextra: Why open banking APIs are so different Open banking comes with a lot of expectations and promises, such as democratisation of Access to Account (X2A), increased competition between banks and fintechs, and provision of better control to end-customers over their financial data and payments. To facilitate the adoption of open banking, several API standards incentives were created including Open Banking UK, Berlin Group, STET in France, Polish API, CDR in Australia, and so on. Also, a process of collaboration between API groups has been initiated. According to Finextra, in the real world of open banking, APIs’ consumers, including fintechs and banks themselves, have faced a lot of challenges while integrating those APIs into unified product propositions. Why? Because APIs are so different. Read more |
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MAIN EVENTS today 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 EBF MEMBERS BdB: The trade agreement between the EU and UK to offer a sound basis for financial cooperation The ratification of the Trade and Cooperation Agreement between the EU and the UK is a vital element of the memorandum of understanding (MoU) on the financial sector. "The memorandum must be finalized to establish a financial dialogue and clarify market access issues", said Andreas Krautscheid, Chief Executive of the Association of German Banks (BdB). Read more Finance Denmark: 3 out of 4 ordinary wage earners do not pay negative interest in the bank In response to a government call for a limit in negative interest rates, a survey by Finance Denmark shows that few citizens get hit by banking pricing. "Banks do not have abnormal earnings compared to other industries", says Ulrik Nødgaard, CEO of Finance Denmark. Read more (DA) FBF: Updates in repayment indicators for Government-backed loans According to the French Banking Federation (FBF), recent indicators on Government-backed loan repayment intentions underscore that the loan has successfully adapted to the variety of post-health crisis scenarios. Read more |
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FROM THE INSTITUTIONS EBA: Guidelines on the delineation and reporting of available financial means of Deposit Guarantee Schemes EBA launched a public consultation on its draft Guidelines on the delineation and reporting of available financial means (AFM) of Deposit Guarantee Schemes (DGSs). The purpose is to delineate that only funds contributed by credit institutions will count towards reaching the target level of the DGS fund. Read more ESRB: Corporate insolvencies and coronavirus A report by the European Systematic Risk Board (ESRB) presents a policy mix directed at preventing a wave of corporate insolvencies triggered by the pandemic. Banks will play a key role in debt restructuring and incentives for banks need to be considered. Read more European Commission: Adoption of the Single Market Programme With €4.2 billion over the period of 2021-2027, the Programme provides an integrated package to support and strengthen the governance of the Single Market, including for financial services. Read more |
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FROM THE EUROPEAN BANKING FEDERATION ESMA consultation on Appropriateness Guidelines Under MIFID II: EBF response The EBF welcomes ESMA’s effort to give guidelines on how to best apply the appropriateness test requirements. Below a few points, the EBF and its members underline: 1) The appropriateness guidelines as proposed by ESMA are going further than the original idea behind level 1 requirements; 2) Information provided to investors should be proportionate as far as the extent of information, means of communication and timing are concerned. one may fear that if too much information and too many details are required from clients, they may be desensitized to invest which would be contrary to CMU overarching objectives. 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 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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