📰 EBF Weekly Brief - Friday 5 June

Eurogroup: Race for Eurogroup presidency is (unofficially) on

European finance ministers will meet virtually for the Eurogroup Council on Thursday 11 June. Eurozone ministers are in the dark over whether Portugal’s economy chief, Mário Centeno, will run again for the Eurogroup presidency. Three candidates are rumoured to be waiting in the wings: Irish Finance Minister Paschal Donohoe and his peers Pierre Gramegna of Luxembourg and Nadia Calviño of Spain. It is too early to speculate, even more so given that it is unclear what Centeno would do. And consensus candidates tend to emerge at the very end. A scramble for power and influence will begin if the 53-year-old decides to call time on his chairmanship as of July, the end of his two-and-a-half-year term. Centeno intends to announce his decision to fellow ministers on Thursday. Read more

FROM THE MEDIA today

Deutsche Welle: Europol to lead new EU financial crime unit

The European Union set up a unit of investigators on Friday to tackle an anticipated surge in financial crime in the economic downturn caused by the coronavirus pandemic. The European Financial and Economic Crime Center will work with Europol, the EU's law enforcement agency. "The fallout from the COVID-19 pandemic has weakened our economy and created new vulnerabilities from which crime can emerge," Europol head Catherine de Bolle said. Read more Reuters

CNBC: ECB raises bond-buying to 1.35 trillion euros

The European Central Bank announced it will increase its Pandemic Emergency Purchase Programme by 600 billion euros as it attempts to bolster the economy following the coronavirus crisis, report various media. The amount comes on top of 750 billion euros of government bond purchases the ECB announced in March, taking the total to 1.35 trillion euros. The central bank also said that the duration of the program will be extended from the end of 2020 until June 2021, or until the bank believes the crisis is over. The New York Times states that the actions by the ECB show the unexpected decision-making of European policymakers. Read more New York Times(€) FT(€) Bloomberg Euractiv

Euromoney: Intesa Sanpaolo’s UBI Banca takeover faces hurdles

UBI Banca and Intesa Sanpaolo are awaiting the outcome of a protracted inquiry by Italy’s anti-trust authority, writes Euromoney. Intesa’s UBI merger would be Europe’s biggest bank takeover in a decade. It would combine Italy’s biggest bank by domestic share, Intesa, with one of the strongest lenders in the rich north of the country, UBI. But it faces a barrier in the form of opposition from UBI’s biggest shareholder pact, representing politically influential local bank foundations in Piedmont and Lombardy, and powerful entrepreneurs in Bergamo, UBI’s home town. Read more

Bloomberg: Corporate M&A to take off again in Europe

Bloomberg notes that some banks which have started selling debt that got stuck on their books during the pandemic, as Europe’s credit markets continue to rally. When the coronavirus hit, debt markets ground to a halt, leaving banks holding on to loans they had planned to trade. In recent weeks, however, as investors return to the market, bankers have felt confident enough to launch some deals for syndication. The pickup in issuance comes as bankers have advised borrowers to take advantage of the increased appetite for risk. Underwriters in Europe have been stuck with about $13 billion of M&A-related debt since the crisis hit, part of which contributed to first-quarter write-downs at several banks. Read more

The Guardian: Germany unveils €130bn coronavirus recovery package

Germany has unveiled a €130bn package of tax and spending measures designed to boost the country’s economic recovery from the coronavirus crisis, writes different media. Finance Minister Olaf Scholz said the package will probably require a second supplementary budget worth some 25 billion euros, reports Reuters. Read more Reuters FT(€)

FROM THE INSTITUTIONS this week

Europol: European Economic Financial Crime Centre launched

Today Europol launched the new European Financial and Economic Crime Centre (EFECC). The Centre will enhance the operational support provided to the EU Member States and EU bodies in the fields of financial and economic crime and promote the systematic use of financial investigations. The centre also aims to boost cooperation and information exchange between public and private actors, including banks. The new EFECC has been set up within the current organisational structure of Europol that is already playing an important part in the European response to financial and economic crime and will be staffed with 65 international experts and analysts. Read more

ECB: Expanding the pandemic emergency purchase programme

Two main factors called for further policy action, writes Chief Economist Philip R. Lane. First, the pandemic-related negative shock to inflation poses a threat to medium-term price stability. Second, while conditions in financial markets have stabilised substantially, the situation remains fragile. Read more

EBA: Opinion on obstacles to the provision of TPPS under PSD2

The European Banking Authority (EBA) published today an Opinion on obstacles to the provision of third party provider services (TPPs) under the Regulatory Technical Standards (RTS) on strong customer authentication (SCA) and common and secure communication (CSC). Read more

ESMA updates reporting instructions for MMF reporting

The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, has published updated reporting instructions to be used for reporting under the Money Market Fund Regulation (MMFR). Read more

BIS: Debt De-risking

The Bank for International Settlements (BIS) published a report titled Debt De-risking. The report examines how corporate bond fund managers manipulate the risk of their portfolios in response to competitive pressure. Corporate bond funds matter from the standpoint of financial stability, because the funds allow their shareholders to pull out their money any time, even if the underlying assets are difficult for the asset manager to sell quickly. Read more

EBF MEMBERS IN THE NEWS this week

Ireland: Covid-19: Mortgage approvals down over 40% in April

Banking & Payments Federation Ireland (BPFI) published the latest figures from the BPFI Mortgage Approvals Report for April 2020. Lenders continue to approve new mortgages with 2,200 mortgages to the value of €525m approved in April. Read more

Switzerland: Sustainable finance: A premier international hub

The Swiss financial centre is a pioneer of sustainable finance and is on course to become a premier international hub in this field. The Swiss Bankers Association (SBA) supports this initiative and has made sustainable finance a top priority. Raed more

Spain: More than 800 students compete in the national final of the EMQ

According to the Spanish Banking Association, more than 800 students between the ages of 13 and 15 took up the challenge of testing their personal financial knowledge during the national final of the European Money Quiz (EMQ) financial education competition on Thursday 28 May. Read more (ES)

Liechtenstein: S&P AAA rating confirmed again – outlook stable

The Liechtenstein Bankers Association published the latest Standard & Poor's research update which once again confirmed Liechtenstein's country rating of AAA, the best rating possible. It is especially gratifying that the outlook remains stable, despite the challenges in overcoming the Covid-19 crisis. Read more

Netherlands: New guarantee scheme good news for smaller businesses

The Dutch Banking Association fully supports the entry into force of the Small Loans Corona Guarantee Scheme (KKC). "The scheme lowers the threshold for small businesses with a financing requirement of up to 50,000 euros to apply for a loan from a bank in order to get through the corona crisis. Banks are ready to implement the scheme immediately," said Chris Buijink, Chairman of the Dutch Banking Association. Read more (NL)

FROM THE EBF this week

Launch of the Global Coalition to Fight Financial Crime

As a project of the World Economic Forum 'Global Coalition to Fight Financial Crime' was officially launched this week. Through public-private cooperation the coalition aims to raise global awareness of financial crime as a international issue with serious criminal and human damage. The Coalition also will focus on promoting more effective information sharing between public and private entities on a coordinated and global level. The European Banking Federation is an official member. Read more

Covid-19: Banks acting responsibly as part of society

At the invitation of European Commission Vice-President Valdis Dombrovskis, the European Banking Federation on Thursday took part in the EC’s Roundtable videoconference to review relief measures for businesses and consumers designed to mitigate the effects of the Covid-19 pandemic. Throughout this crisis, the banking industry continues to stand with its clients – both businesses and households. Read more

TEST YOURSELF AGAINST THE FINLIT CHAMPIONS

TUESDAY 16 JUNE:
GRAND FINAL EUROPEAN MONEY QUIZ

Do you know how to manage your money? Do you know what it takes to become and remain financially resilient? To mark the close of the European Money Quiz 2020 season you are invited to join us for the GRAND FINAL quiz show on Tuesday 16 June at 14 CET. You will hear from this year’s national winners and can challenge them directly in this international online financial literacy competition.

Watch live at www.youtube.com/EuropeanMoneyQuiz

🎥 WATCH RECORDED SESSION
The Cybersecurity & Digital Banking Benefits of .BANK

On Wednesday 27 May, the .Bank team from the global fTLD domain held an online seminar titled Cybersecurity & Digital Banking Benefits of .BANK. Jill Castilla, President and CEO Citizens Bank of Edmond was among the speakers together with Craig Schwartz ,fTLD Registry Services | .BANK Managing Director and Drew Schiff fTLD Registry Services | .BANK Director, Engagement Services. Watch here

ABOUT THE EUROPEAN BANKING FEDERATION

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.