FROM THE MEDIA

Reuters: Banks' stress test results will show need for action

The results of a banking health check the European Central Bank will publish this summer will sound a wake-up call for lenders to take action even if they are unlikely to hold any surprises, ECB governing council member Ignazio Visco said. In an interview with Reuters on Monday, Visco said supervisors were engaged in a constant dialogue with the banks they oversee, and know their situation in detail. Read more

Bloomberg: Crypto assets a great concern, says Ireland’s Central Bank enforcer

The rising popularity of cryptocurrencies is of great concern as “crypto assets are quite a speculative, unregulated investment", Derville Rowland, one of the top officials at Ireland’s Central Bank says. Besides, attention is also focused on the so-called ‘gamification’ of stock investing, which Rowland expects to become an issue for Europe soon. "While there’s not yet a timeline for any new rules, regulations need to be technology neutral", she said, “so that you’re not getting better protections in older paper based processes then you are in more online processes”, Bloomberg reports. Read more

BBVA: Carlos Torres Vila: "Banks are moving fast to tackle climate change"

Carlos Torres Vila, BBVA Chairman, discussed with Andrea Enria, Chair of the European Central Bank (ECB)’s Supervisory Board, the role of the financial sector, its corporate governance, digital disruption, and climate change. He explained that climate change and decarbonization represent not only a risk but also an enormous opportunity for both the economy and for banks. Firstly, because of the investments involved, and secondly, because of the importance of advising customers on their ecological transition. Read more

MAIN EVENTS

EBF Digital Thursdays

 Close-up: A Digital Euro

ONLINE / Thursday, 24 June at 13:30 CEST

Central banks around the world are investigating Central Bank Digital Currencies as a response to the emergence of private stablecoin projects and to meet the needs of an increasingly digitalized economy. In Europe, the ECB is expected to announce soon the continuation of its investigation into a digital euro following a public consultation phase. Join our high-level speakers discussing what a digital euro could look like, what could be its features, how it could be best designed and what role banks could play in this design phase and a digital euro ecosystem. Register HERE

FROM THE EBF MEMBERS

FROM THE INSTITUTIONS

ECB: Monetary developments in the euro area: April 2021

The annual growth rate of the broad monetary aggregate M3 decreased to 9.2% in April 2021 from 10.0% in March, averaging 10.5% in the three months up to April. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, decreased to 12.3% in April from 13.6% in March. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 0.3% in April from 0.9% in March. The annual growth rate of marketable instruments (M3-M2) increased to 10.6% in April from 7.0% in March. Read more

SRB: Addendum to the approach in the Public Interest Assessment

The Single Resolution Board (SRB) has published a revised approach to the Public Interest Assessment policy (PIA) in resolution planning. The updated approach takes into account that a bank’s failure may take place not only under an idiosyncratic scenario but also under broader financial instability or a system-wide event. This consideration strengthens the choice of the best resolution strategy in order to protect the European taxpayer and promote financial stability in the EU. Read more

EBA and ESMA publish provisional list of instruments and funds for the smallest investment firms under the Investment Firms Regulation

The European Banking Authority (EBA), jointly with the European Securities and Markets Authority (ESMA) have published a provisional list of additional instruments and funds that competent authorities may allow to use as own funds for some of the smallest investment firms. The latter include only non-legal persons or joint‐stock companies, or those which meet the conditions for qualifying as small and non‐interconnected investment firms as defined in the Investment Firm Regulation (IFR). The list is provisional and intended to provide guidance to investment firms and competent authorities ahead of the application of the IFR requirements, as of 26 June 2021. Read more

FROM THE EUROPEAN BANKING FEDERATION 

EBF calls for next steps to strengthen economic recovery in Europe: EBF Board Communiqué

The Board of the European Banking Federation (EBF) reiterated that European banks stand ready to continue supporting businesses and households amid growing uncertainty over the pace of the economic recovery. The EBF board also highlighted the need to evolve the policy response to ensure a ‘soft landing’ to the new normal and expressed confidence in governments’ commitment to avoiding a ‘cliff-edge’ effect. Read more

EBF & S&P Global Market Intelligence: Managing Credit Risk during the COVID-19 Crisis & Recovery Phase in Europe

Over the past year, the European banking industry has been hit by volatile markets, worsening economic conditions and business continuity challenges. Highlights from the EBF and S&P Market Intelligence webinar on the impact across the banking landscape and how default assessment plays a pivotal role in the recovery are now available. Speakers' presentations and full webinar available HERE

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European Banking Federation