Von Der Leyen and Johnson to meet on Monday as Brexit talks stall

European Commission President Ursula von der Leyen and EU Council President Charles Michel will meet on Monday with U.K. Prime Minister Boris Johnson for talks that could give new momentum to the stalled post-Brexit negotiations. The U.K. left the political institutions of the EU on 31 January but remains inside the EU’s tariff-free single market and customs union until the end of the year. This so-called transition period can be extended by two years although a deal to do so has to be made by 1 July. Johnson has repeatedly said he will not extend the transition period beyond December 31. Concerns are growing over a messy no-deal departure. Since March, U.K. and EU negotiators have led several rounds of talks that have resulted in little progress. Monday's top-level political intervention aims to inject urgency into the talks that have failed to move beyond fundamental disagreements.

FROM THE MEDIA today

Bloomberg: SRB warns against preliminary bank resolution 

Chair of the Single Resolution Board Elke Koenig warned against using taxpayer money to rescue lenders that were barely surviving before the coronavirus pandemic, writes Bloomberg. With the economic fallout from the virus pushing the limits on state aid in Europe, Elke Koenig said handing out targeted aid to banks “shouldn’t mean now we’re back to bailouts.” The question that needs to be asked is “what is a corona-related issue and what is perhaps an underlying problem which was only getting the last kick via corona.” Read more
 

Finextra: EU money laundering actions go under scrutiny

The European Court of Auditors (ECA) has started an audit to examine the Union’s efforts to tackle the laundering of dirty money, focusing specifically on the banking sector, reports Finextra. Read more Brussels Times
 

Irish Times: Irish banks' provisions for bad loans biggest in Europe

Irish banks have set aside bigger buffers for potential loan losses due to the pandemic fallout than those in a swathe of European countries including the UK, France, Spain, Italy and Portugal. Read more
 

Law360: EU lawmakers prepare to vote on green finance rules

European lawmakers are preparing to vote to approve a new legislative framework that sets out which investments and assets can be considered environmentally sustainable, known as the taxonomy. In an interview with Michèle Lacroix, an EU expert who helped design the EU’s green finance taxonomy, Euractiv writes that climate-related reporting is not standardised enough and should become mandatory. Read more (€) Euractiv

Reuters: EU eases rules for some foreign clearing houses

A new law requiring closer scrutiny of foreign clearing houses used by customers from the EU has been simplified after the United States threatened retaliation, according to Reuters. Meanwhile, the FT says that the ESMA has accepted that many clearing houses and trading venues were behind on implementing rules known as “open access”; requiring them to allow their rivals to compete for traders’ business. Read more FT(€)

Reuters: Italy's competition watchdog probes top banks

Italy’s antitrust regulator said it was probing four financial institutions, including the country’s top two banks, for allegedly withholding information and imposing unnecessary conditions on borrowers who wanted to access coronavirus support measures, writes Reuters. Read more

FROM THE INSTITUTIONS this week

Council: Main results - Video conference of the Eurogroup

The incumbent Eurogroup president, whose term comes to an end on 12 July, informed ministers of the process for electing a new president. The Eurogroup discussed the sixth enhanced surveillance report on Greece and published a statement on the release of policy-contingent debt measures. In inclusive format, ministers exchanged views on the economic situation and economic recovery plans following the Covid-19 pandemic. Read more

ECB: Monetary policy to support the recovery

We can draw a clear distinction as regards the role of the APP and the PEPP, Chief Economist Philip R. Lane tells Il Sole 24. The APP is part of our traditional suite of policy instruments while the PEPP is an additional and temporary tool to deal with the unique and severe pandemic shock. Read more

EBA publishes its 2019 Annual Report

The European Banking Authority (EBA) published its 2019 Annual Report, which provides a detailed account of all the work the Authority achieved in the past year and anticipates the key areas of focus in the coming year. 2019 was a year of significant changes for the EBA, starting with the appointment of José Manuel Campa as Chairperson, and the Authority’s relocation from London to Paris. Read more
 

Parliament: EU defines green investments to boost sustainable finance

To boost the shift towards eco-friendly investment the EU is introducing rules to define what qualifies as green or sustainable activities. During the June plenary session, MEPs will vote on a framework, known as taxonomy, that determines which activities can be considered sustainable. This would establish a common classification system across the EU, provide business and investors with clarity, and encourage an increase in private sector funding for the transition towards climate neutrality. Read more

ECA started an audit to examine EU actions against money laundering

Money laundering is the practice of disguising the illegal origin of criminal proceeds. Suspicious transactions linked to money laundering amount to hundreds of billions per year within the EU. The European Court of Auditors (ECA) has started an audit to examine the Union’s efforts to tackle the laundering of dirty money, focusing specifically on the banking sector. Read more

ESMA responds to Commission consultation on the revision of NFRD

The European Securities and Markets Authority (ESMA), submitted a response to the European Commission’s (EC) consultation on a revision of the Non-Financial Reporting Directive (NFRD). The response recommends standardising disclosure requirements, widening the range of companies required to report and ensuring consistency between legislative initiatives on sustainable finance. Read more

Commission: High-Level Forum pushes for the completion of CMU

A new report released by the Commission, presented this week, sets out a series of clear recommendations aimed at moving the EU’s capital markets forward. Completing the CMU has now become particularly urgent in order to speed up the EU’s recovery from the coronavirus pandemic. Read more

EBF MEMBERS IN THE NEWS this week

FROM THE EUROPEAN BANKING FEDERATION this week

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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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.