EBF WEEKLY + FINANCIAL REGULATION AGENDA
for the week starting Monday 15 April 2024

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

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FROM THE MEDIA 

Reuters: Traders bet the ECB will chart its own rate cut path

Traders' bets on European Central Bank (ECB) interest rate cuts this year have barely been shaken by hot U.S. inflation that slashed Federal Reserve easing expectations this week, highlighting a growing investor focus on the divergence between the regions. The ECB cemented that conviction on Thursday, signalling that it may soon start cutting rates. President Lagarde stressed the ECB is "data-dependent, not Fed-dependent." Read more

S&P Global Market Intelligence: Barclays has highest upside potential among European bank stocks

Barclays PLC has the most share price growth potential among large European banks, according to an analysis by S&P Global Market Intelligence. The UK lender's implied upside to share price target was 28.2% as of April 1, compared to a median of 8.6% for a sample of Europe's largest lenders. Read more

Risk.net: EU banks’ incremental risk charges soared in volatile H2

The incremental risk charges (IRCs) of several European Union banks spiked during the second half of 2023, amidst ongoing volatility in European and US credit markets, Risk.net reports. A Risk Quantum analysis of 14 EU dealers shows that nine of them saw a rise in the peak IRC reading – the maximum potential loss from the default or downgrade of trading securities – with BNP Paribas posting the biggest increase. Read more

FINANCIAL REGULATION AGENDA for next week

Monday 15 April

• Deutsche Bundesbank, Oesterreichische Nationalbank and Joint Vienna Institute ‘Banking Supervision within the Basel Framework’ event 

• International Monetary Fund and World Bank Spring Meetings 

• Bruegel and the Financial Times ‘Visions for Europe: Economic expert debate for the 2024 EU elections’ event 

• TATA Consultancy Services ‘Navigating the Digital Future — Balancing Innovation, Ethics, and Security in the EU’ event 

Tuesday 16 April

• PIIE and IMF ‘Rethinking economic policy: Steering structural change’ event 

• Deutsche Bundesbank ‘Macroprudential surveillance’ event 

• Comeos & Forum Europe ’A reboot for the single market‘ event 

• Bank of England and King’s College London ‘Empirical macroeconomics‘ workshop 

• The Financial Times ’Generative AI strategies for financial services‘ event 

Wednesday 17 April

• Bruegel ‘Fiscal rules, climate and the future of Europe with Dorothée Rouzet’ event 

• Bruegel ‘Halftime for the European Union’s recovery fund: is the glass half full or half empty?’ event 

• CERRE ‘The upcoming Hungarian Council Presidency’s Digital Priorities’ event 

• European Commission ‘Climate Resilience: Preparing for the Future’ forum 

Thursday 18 April

• European Parliament Committee on Economic and Monetary Affairs 

Friday 19 April

• OECD-ECB ‘Navigating the path to net zero – the interplay of climate, monetary and financial policies’ workshop 

• PIIE ‘A vision of the future financial system’ event 

• PIIE ‘Monetary policy responses to the post-pandemic inflation: What happened and lessons learned’ event 

• PIIE ‘On the recent changes in the Bank of Japan’s monetary policy framework’ event 

The European Money Quiz 2024 Grand finals are coming next week! 

FROM EBF MEMBERS

AEB: Cost-effectiveness, first line of defence for global challenges

"2023 was a good year for the banking sector and this has a positive impact on the countries and economies where we operate because the drive for economic growth, which is in our DNA, is the drive for social progress. Profitability continues to recover due to the economic improvement and the normalisation of monetary policy, non-performing loans remain under control, capital and liquidity ratios have a significant margin over regulatory requirements" says Alejandra Kindelan, Spanish Banking Association's (AEB) President. Read more (ES)

BPFI: New report from the Climate Forum

Banking & Payments Federation Ireland (BPFI) hosted the launch of a report on best practice in climate-related risk management within financial services in Ireland, produced by the Climate Risk and Sustainable Finance Forum (Climate Forum), a consultative forum established by the Central Bank. Read more 

Finance Denmark: Fraud cases more than doubled in one year 

The Danish banks registered a total of 9,127 cases of online banking fraud in 2023. This is more than twice as many cases as the previous year. But in more than half of the cases, the banks luckily stop the money from ending up in the criminals' pockets. Nevertheless, in 2023, criminals managed to steal 104.9 million. kroner. This is shown by the latest figures from Finans Danmark. Read more (DK)

FROM THE INSTITUTIONS

ECB: Monetary policy decisions

The European Central Bank (ECB) Governing Council decided to keep the three key ECB interest rates unchanged. The incoming information has broadly confirmed the Governing Council’s previous assessment of the medium-term inflation outlook. Inflation has continued to fall, led by lower food and goods price inflation. Read more

ESAs: Voluntary dry run exercise to prepare industry for the next stage of DORA implementation

The European Supervisory Authorities (ESAs) today announced they will launch in May the voluntary exercise for the collection of information registers of contractual arrangements on the use of ICT third-party service providers by the financial entities. Under the Digital Operation Resilience Act (DORA) and starting from 2025, financial entities will have to maintain registers of information regarding their use of ICT third-party providers. Read more

EBA: Final guidelines on the application of the group capital test for investment firm groups

The European Banking Authority (EBA) published its final Guidelines on the application of the group capital test for investment firm groups. These Guidelines set harmonised criteria to address the observed diversity in the application of the group capital test across the EU and help ensure a level playing field. Read more

FROM THE EBF  

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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

European Banking Federation