EBF MORNING BRIEF Tuesday 21 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: Poor euro zone bank valuations seen a drag on credit growth
Low valuations for eurozone bank stocks appear to reflect concerns about credit risk and shareholder payouts, the European Central Bank (ECB) said. As reported by Reuters, the ECB argued that banks' exposure to rising corporate credit risk and the perception of the shares as value stocks play a big part in stagnant valuations. Read more
Bloomberg: Bets on ECB cuts risk prompting hike instead, Wunsch says
The European Central Bank (ECB) may raise borrowing costs again if investor bets on monetary loosening undermine the institution’s policy stance, Governing Council member Pierre Wunsch said. According to Bloomberg, such remarks aren’t however shifting the financial-market views. Traders are still betting the ECB is done raising rates and may start loosening policy as early as April. Read more
FT: Green financiers should figure on greater rigor
More and more banks are setting green lending targets. Ireland’s AIB Group says it will triple the money allocated to a climate fund aiming for 70 percent of all new lending to go to green or “transition” projects by 2030. However, definitions are stretchy which could turn the initiatives into case studies in greenwashing, the Financial Times (FT) says. Read more |
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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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 | 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 discuss with the European Central Bank,
the European Banking Authority,
and the banking industry the reports ‘findings! |
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FROM EBF MEMBERS
AEB: Banks and commitment
Latin America represents a quarter of the geographical exposure of Spanish banks, under a scheme of subsidiaries that in most cases are independent from a capital and liquidity point of view. The role played by Spanish banks in these countries has been decisive for greater financial inclusion, and for stabilizing local banking systems. This is the main conclusion of a recent study by the Spanish Institute of Banking and Finance and published by the Spanish Banking Association (AEB). Read more (ES) Finance Finland: Financial sector commits to global nature goals Finance Finland is working with its members to draft the sector’s own nature commitment, which will include indicators describing and monitoring measures to prevent biodiversity loss over the next four years. The financial sector wants to be part of the solution to the climate crisis, but such a massive change needs to involve the entire economy. Read more
NVB: Gert-Jan Duitman is a new member of the Policy Board
Starting next January, Gert-Jan Duitman is a member of the Policy Board at the Dutch Banking Association (NVB). “With his extensive experience at DNB and his knowledge of the social challenges that Dutch banks face, we will work towards a strong, sustainable, and inclusive society,” says Eelco Dubbeling, NVB's General Manager. Read more (NL) |
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FROM THE INSTITUTIONS
ECB: Banks’ earnings vs valuations
Bank earnings have reached multi-year highs, yet bank share prices are just above pre-pandemic levels. The European Central Bank (ECB) looks at why this might be a signal of uncertainty about banks’ payouts to shareholders in the longer term, and the implications for banks’ ability to raise capital. Read more BIS: Avoiding the insurability tipping point Sound insurance pricing and underwriting practices are essential to manage financial risks arising from climate change. A paper by the Bank for International Settlements (BIS) examines how insurers and insurance supervisors are incorporating considerations of climate-related risks in insurance product pricing and underwriting, based primarily on a survey of selected insurance supervisors and insurers. Read more
EC: Net Zero Industry Act: boosting clean technologies in Europe
Europe is lagging behind in the deployment of clean energy technologies but a new EU initiative called the Net Zero Industry Act aims to improve the situation, according to the European Commission (EC). The act puts forward measures aimed at ensuring that by 2030 the EU is able to produce at least 40% of its own needs for green technologies. 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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