EBF WEEKLY + FINANCIAL REGULATION AGENDA
for the week starting Monday 17 October 2022 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 Recommend the EBF newsletters to a colleague. Click here to sign up! |
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FROM THE MEDIA
Bloomberg: ECB calls for bank dividend restraint as economy slows
European banks should exercise restraint in dividends and buybacks to ensure reserves are enough to weather an expected economic downturn, potentially setting investors up for disappointing payouts. The European Central Bank (ECB) and other authorities will evaluate banks’ plans on a “case-by-case” basis due to differences in their vulnerability to “recessionary pressures,” Steven Maijoor, who sits on the ECB’s supervisory board, said in an interview seen by Bloomberg. Read more
Reuters: ECB may start balance sheet rundown in second quarter
European Central Bank (ECB) policymakers discussed a detailed timeline for running down a 3.3 trillion euro bond portfolio and envisioned the start of quantitative tightening in the second quarter of 2023, sources told Reuters. The sources added that the discussion did not impact the ECB's 1.7 trillion euro Pandemic Emergency Purchase Programme. Read more
Risk.net: Some euro banks modelled lower mortgage risk in H1
Banks in some of Europe’s biggest housing markets lowered risk weights on internally-modelled mortgages over the first half of the year, despite a looming recession that threatens homeowners’ repayment ability. According to Risk.net, Italian and Belgian lenders reported steepest drops in risk density despite recessionary threat. Read more |
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| | Next Friday, the European Commission will host a webinar on decentralised finance (DeFi). The event will feature Tarik Roukny, Assistant Professor of Finance at the Faculty of Economics and Business (KU Leuven), who will present his research on how DeFi addresses long-standing information frictions in financial markets and the impact this could have on public policy. Read more |
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FINANCIAL REGULATION AGENDA for next week
Monday 17 October
European Parliament plenary session (Strasbourg) Tuesday 18 October Luxembourg Chamber of Commerce 'Cybersecurity Week' (Luxembourg) Wednesday 19 October Council Horizontal Working Party on Cyber Issues Thursday 20 October European Banking Authority Banking Stakeholder Group meeting European Securities and Markets Authority Management Board meeting Friday 21 October
For a full-year overview of key financial regulation events: click here
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FROM EBF MEMBERS
FBF: Interview with Laurent Mignon in Les Echos
Laurent Mignon, president of the French Banking Federation (FBF), answered questions from Les Echos. In a context marked by geopolitical tensions and high inflation, he underlined the triple capacity of French banks: coping with a slowdown in growth, supporting their customers to meet the challenges, and engage in decarbonization. Read more (FR)
Finance Finland: Deforestation is a growing threat, but overlapping regulation will not help prevent it
Deforestation is a growing problem in terms of climate change and biodiversity loss. Finance Finland supports the regulatory proposal but highlights the difficulties brought by the Parliament’s amendments. Finance Finland is baffled as to why the Parliament wants to introduce heavy administration to the financial sector, when existing regulation already covers the prevention of deforestation and related obligations. Read more
CBA: Hypomonitor September 2022
In September, banks and building societies provided mortgage loans in a volume slightly exceeding CZK 7 billion. Compared to August, the volume and number of mortgages provided decreased by roughly 30%. This is the third double-digit decline in a row, says the Czech Banking Association (CBA). Read more (CZ) |
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FROM THE INSTITUTIONS
ECB: Keep inflation expectations anchored
The markets must have confidence in the credibility of the central bank, according to the European Central Bank (ECB) Vice-President Luis de Guindos. 'We will do whatever is necessary to bring inflation back to our 2% target in the medium term,' he says. Read more
BIS: Gender diversity in bank boardrooms and green lending
Banks play a pivotal role in modern financial systems and they can help to accelerate the transition to a carbon-neutral economy. However, a bank's climate strategy depend on the trajectory defined by the board, which in turn depends on the board's diversity. According to the Bank for International Settlements (BIS), the presence of women in banks' boardrooms can add value along several dimensions. Read more
EC: Eurobarometer: Retail Financial Services and Products
According to the Eurobarometer survey, 86% of Europeans say that they feel confident in managing their personal finances, and 73% feel confident with banking online. Besides, they also care about sustainable finance but lack usable information about it. The results vary across Member States, gender, age, and level of education. This shows the need for continued attention to financial literacy, the European Commission points out. Read more |
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FROM THE EBF this week EBF Response to ESMA Consultation on Product Governance The EBF submitted its response to the ESMA Consultation on the review of the Guidelines on MiFID II product governance requirements. Read more
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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