EBF WEEKLY + FINANCIAL REGULATION AGENDA
for the week starting Monday 16 November  2020

An overview of the main banking stories this week and a look ahead to key events in European banking and financial regulation for the upcoming week, brought to you by the European Banking Federation.

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JP Mustier to address the Euro Finance Week Opening Conference 

The Euro Finance Week will take place from 16 to 20 November 2020. In view of the renewed "lockdown" rules to stop the spread of coronavirus, the event will take place almost completely, digitally. Distinguished representatives from the national and international financial sectors, regulators, politicians and academia will discuss and reflect upon current topics in the financial sector. EBF President Jean Pierre Mustier, CEO of Unicredit Group and winner of the "European Banker of 2018" award, has been invited to the Opening Conference on Monday 16 November, to share views on the panel "Europe's banking market in transition - opportunities and challenges" together with Thomas Steiner Global Head of Banking & Capital Markets and Partner, BearingPoint Deutschland. Among other speakers, the conference will hear from Christian Sewing, Chairman of the Management Board of Deutsche Bank, Christine Lagarde, President of the European Central Bank, and Olaf Scholz, German Federal Minister of Finance patron of the Euro Finance Week. Read more

Agenda for next week

Thursday 19 November:

• EBF Digital Thursdays' series: EU payments at cross-roads: what strategy for the future? online conference

• European Council: Video conference of the members of the European Council

• European Council: Working Party on Financial Services meeting

• European Parliament: Committee on Economic and Monetary Affairs.
  Agenda

• Bruegel online conference: Green recovery spending: how, when and where

• EACB webinar: Small in size, big in impact: Can NFI work for SMEs?

• ECB Banking Supervision Industry Dialogue on the Annual Report on the Outcome of the SREP IT Risk Questionnaire

• ISDA virtual conference on Trading Book Capital

• EBF Executive Committee virtual meeting

• EBF Information Sharing Task Force virtual meeting

• Deutsche Bundesbank online seminar: Networks of banks

• European Council: Horizontal Working Party on Cyber Issues meeting

• Afore Consulting: Fireside Chat: Maria Velentza, Director Financial Institutions, DG Competition (COMP)

• UK in a Changing Europe online conference: Brexit - the end?

• EBF Board virtual meeting

• Joint ESBG, EACB & EBF online workshop: Future role of banks in digital customer identification (Day 2 - Digital Identity going forward – banks as trusted infrastructure)

For more events check the EBF planning calendar HERE
 

*All events take place in Brussels unless stated otherwise

FROM THE MEDIA this week

The Banker: ECB ponders ‘bad bank’ for souring eurozone loans

The European Central Bank (ECB) is reportedly pushing for a ‘bad bank’ to mop up remaining non-performing loans (NPLs) dating from the 2007–2009 global financial crisis amid concerns about a second wave of NPLs sweeping through the eurozone, The Banker reports. The central bank’s concerns have been accentuated by renewed population shutdowns across Europe in response to the rapid pick-up in Covid-19 infections. In addition, there is evidence from an ECB third-quarter lending survey that eurozone banks are reducing credit to the economy and becoming more cautious. Read more

BBVA: The future of the digital economy

The European Banking Federation recently organized a conference on innovation and cybersecurity where the role of banks in the digital economy and platform economy was discussed, among other topics. According to BBVA, the key to ensuring that financial services benefit from this economy is the creation of a framework for the different types of participating companies to compete fairly. Read more

PYMNTS: European banks warned loan defaults could skyrocket 

The chair of the Single Resolution Board is warning lenders to prepare for an onslaught of bad loans due to the second wave of Covid-19 lockdowns, the Financial Times reported on Wednesday. Elke König said banks have to figure out which loans are more likely to be viable. She didn’t agree with the European Central Bank’s assertion that the EU should develop a web of “bad banks” to handle higher non-performing loans (NPLs), PYMNTS reports. Read more (FT) €

Risk.net: EBA wants Basel to revisit prudential rules on software

Europe’s banking regulator is keen for standard-setters in Basel to develop a global regime for the prudential treatment of software assets, as the European Union prepares to ease its own rules on the topic, Risk.net reports. A final draft regulatory technical standard (RTS) proposed by the European Banking Authority on October 14 will provide some capital relief to EU banks, but will remain significantly tougher than standards in the US and Switzerland. Read more
 

Bloomberg: Reductions in 2020 are on track to surpass last year’s total

Even as European banks reported lower-than-expected loan losses and strengthening capital ratios in the third quarter, the job cuts kept coming across the continent. According to Bloomberg, Spain’s Banco Santander SA plans to get rid of as many as 2,000 staff at its Polish business. Britain’s Lloyds Banking Group Plc announced it was cutting about 1,070 roles, mostly at its technology and retail units. Dutch lender ING Groep NV revealed the loss of 1,000 jobs by the end of 2021. Read more

Join and register for free

EU PAYMENTS AT CROSS-ROADS:
WHAT STRATEGY FOR THE FUTURE?

ONLINE conference, Thursday 19 November, 15:00 CET

Join us on Thursday, 19 November at 15:00 CET for the last conference of the EBF Innovation and Cybersecurity Thursdays' series titled EU payments at cross-roads: what strategy for the future?. 

Find out more & register HERE

FROM THE MEMBERS this week

FROM THE INSTITUTIONS this week

ECB: The blueprint for managing the second wave

The European policy response to the pandemic has proven that when different authorities work together, countries can successfully absorb the shock, says President Christine Lagarde. The second wave presents new challenges and risks, but the blueprint for managing it is the same. Read more

ESMA published AIFMD reports

ESMA published its first annual report on the use by National Competent Authorities (NCAs) of sanctions under the Alternative Investment Fund Managers Directive (AIFMD). The report contains an overview of the applicable legal framework and information on the penalties and measures imposed by NCAs from 1 January 2018 to 31 December 2018 and from 1 January 2019 to 31 December 2019. Read more

ECB: Euro area securities issues statistics: September 2020

ECB published the Euro area securities issues statistics: September 2020. According to the ECB, the annual growth rate of the outstanding amount of debt securities issued by euro area residents increased from 7.7% in August 2020 to 8.0% in September. For the outstanding amount of listed shares issued by euro area residents, the annual growth rate increased from 0.3% in August 2020 to 0.8% in September. Read more

EBA reminds the need for readiness in view of the Brexit 

The European Banking Authority (EBA) reminds financial institutions affected by the end of the transition period to finalise the full execution of their contingency plans in accordance with the conditions agreed with relevant competent authorities before the end of the transition period on 31 December 2020. The EBA also reminds institutions to ensure adequate communication regarding their preparations and possible changes to any affected EU customers. Read more

BIS: Inside the regulatory sandbox: effects on fintech funding

The UK experience shows that regulatory sandboxes help fintechs raise funding by reducing regulatory costs and providing information about start-ups’ quality. Over 50 countries have established regulatory sandboxes for fintechs - but are sandboxes effective in spurring innovation? Read the latest BIS Working Papers. Read more

FROM THE EUROPEAN BANKING FEDERATION this week

EBF Publishes Financial Literacy Playbook for Europe

The European Banking Federation presented its Financial Literacy Playbook for Europe. This playbook is the result of the common efforts of national banking associations across Europe and the European Banking Federation. It provides a valuable snapshot of the banking industry’s financial education initiatives across Europe and can be used as a country-by-country reference guide. Read more  Financial Literacy Playbook for Europe (PDF)

EBF CBF & IBM guide stakeholders for Cloud Exit Strategy Testing

EBF Cloud Banking Forum (CBF) and IBM discuss the necessity for clear guidance on when and how to test exit plans, looking at appropriateness and sufficiency of testing, according to the Forum's technical paper on "Cloud Exit Strategy - testing of exit plans.” Read more  Cloud Banking at EBF

FT Global Banking Summit

Rebuilding, Redefining and Repositioning for Growth

Digital Conference, 1- 3 December, 2020
 

2020 is proving to be a year of unprecedented uncertainty in the banking world. All projections and strategies have been thrown into chaos by the global pandemic, and it will be some time before the full impact can be estimated. The Financial Times’ landmark Global Banking Summit, spanning multiple time zones, provides an unrivalled platform for dialogue between banking and finance leaders, incumbents and challengers, regulatory organisations and technology partners to evaluate the industry’s response to the crisis and to develop key plans and priorities for 2021 and beyond. Speakers will include notable figures from the finance world, with keynote and panel contributions from senior banking executives, national and international regulators, and eminent thought leaders. 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, with active members in 32 countries. 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.

European Banking Federation