EBF MORNING BRIEF Tuesday 5 October 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!
|
|
|
FROM THE MEDIA
POLITICO: European banks debate rival to US payment giants
Politico report that a coalition of European banks will decide whether to put together a payments product that rivals Mastercard and Visa. There is strong desire to expand EU sovereignty in this area and break US dominance, with EU data laws in mind, Politico note. Deutsche Bank, Commerzbank, BNP Paribas, ING, Santander, UniCredit and BBVA are among 22 backers of an effort, dubbed the European Payments Initiative (EPI), thatâs seeking to move the EUâs cross-border payments industry beyond the influence of Washington. Read more
Bloomberg: Banks start dropping clients to dodge costs tied to ESG risk
According to Bloomberg, European banks are beginning to drop clients that pose a climate risk rather than face the possibility of higher capital requirements. Banks are raising prices, denying loan requests, âde-selecting industries and in some cases clients,â said Jacob Gyntelberg, director of the economic and risk analysis department at the European Banking Authority (EBA). Read more
CoinDesk: CBDC impact on banking could be manageable: BIS report
Three new reports by a Bank for International Settlements (BIS) working group analyze policy options and practical implementation issues of a retail CBDC. All reports were compiled by a working group of seven central banks (The Bank of Canada, the Bank of England, the Bank of Japan, the ECB, the Fed, Swedenâs Sveriges Riksbank, the Swiss National Bank) and the BIS. Read more |
|
MAIN EVENTS European Council: Ecofin meeting Milan Fintech Summit. EBF Innovation & Cybersecurity Director Alexandra Maniati speaking
For a full-year overview of key financial regulation events: click here
|
|
FROM THE EBF MEMBERS
NVB: Basel IV rules for banks also have an impact on the customers
Rules for banks are established at an international level. That is what the Basel Committee on Banking Supervision does. Since the financial crisis, the rules on the amount of capital that banks must hold for the risks they run have been tightened drastically. The Basel IV reform will have a major impact on Dutch and European banks. In the long run, there will probably also be an impact for the customer, foresees Onno Steins, a senior adviser at the Dutch Banking Association (NVB). Read more (NL)
AEB: Your finances, your future
Since 2014, the Foundation of the Spanish Banking Association (AEB) and the Junior Achievement Foundation have developed the program 'Your Finances, your future' to impart basic financial, cybersecurity, and sustainability knowledge in schools. In the development of the program, the volunteers employed by the banks work hand in hand with the teaching staff. "Financial education is one of the best tools that we can transmit to young people so that they are capable of making good decisions for individuals and for society as a whole", JosĂ© Luis MartĂnez Campuzano, spokesperson for AEB said. Read more (ES)
UK Finance: Local digital currencies
The British governmentâs 'Build Back Better' agenda stresses not only the need for sustainable development to instill resilience into local economies but also the role of digitalization as driver of recovery. According to UK Finance, one way this can be achieved is by adopting a digital currency in local economies, namely geographically limited "Stablecoinsâ designed to serve specific areas or regions. Read more |
|
FROM THE INSTITUTIONS European Commission: Banking on the future: keynote address at the European Banking Summit 2021 The European Commission has published Commissioner McGuinessâ speech to European Banking Summit 2021. In her keynote speech, she emphasized that banks have remained robust despite the economic challenges, and she highlighted the need for a completed Capital Markets Union and Banking Union. On Basel III, she stressed that the European Commissionâs proposal will meet the EU's international commitments to address remaining flaws in the prudential framework without leading to a significant increase in overall capital requirements. Read more
ECB: Banks' risk-taking within a banking union
This paper published by the European Central Bank (ECB) studies the relationship between banksâ size and risk-taking in the context of supranational banking supervision. Consistently with theoretical work on banking unions and in contrast to analyses emphasizing incentives underpinned by the too-big-to-fail effect, results find an inverse relationship between banksâ size and non-performing loan growth for a sample of European banks. Read more
European Parliament: ECB monetary policy: Strategic review
The European Parliament has published a briefing on the European Central Bankâs Strategic Review. According to the review, the revised monetary policy strategy brings the ECB's overall strategic orientation closer to its central bank peers, shifting away from curbing high inflation towards ensuring it does not dip too low, while also building climate considerations into the policy framework. Read more |
|
|
|
|
FROM THE EBF
Proposal for a regulation laying down harmonised rules on AI act: EBF response
The European Banking Federation (EBF) welcomes the opportunity to comment on the European Commissionâs proposal for a Regulation laying down harmonized rules on Artificial Intelligence (AI Act). The Act aims to develop an ecosystem of trust for AI in the EU, which encourages investment, aims to strengthen competitiveness, and ensures that AI systems respect fundamental rights and EU values. It is essential for these rules to strike a balance between regulating high-risk AI use cases and supporting innovation, including proportionate requirements, no unjustified barriers or restrictions, and no duplication. Read more
ESMA consultation on RTS 1 & 2 under MiFIR: EBF high-level comments
The EBF would like to thank ESMA for the opportunity to comment on the proposed changes on RTS 1 & 2 under MIFIR. The EBF would like to share some concerns regarding this consultation on the following: mandate, timing, alignment between MAR and transparency requirements under MIFIR, and streamlining. Read more EBF Vacancies: Work with us! Visit our Vacancies page to learn more about the opening positions at the EBF. Read more |
|
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 |
|
|
This newsletter is published by the EBF Mediacentre. If you do not want to receive the EBF Morning Brief click here.
For questions or suggestions contact f.indaco@ebf.eu
European Banking Federation Avenue des Arts 56, B-1000 Brussels, Belgium |
|
|
|
