EBF WEEKLY + FINANCIAL REGULATION AGENDA
for the week starting Monday 25 July 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!

FROM THE MEDIA

Reuters: ECB goes with 50 basis-point hike, ending negative rates era

The European Central Bank (ECB) delivered its first interest rate hike in over a decade, joining other major central banks in the race to get on top of surging inflation. The ECB hiked its deposit rate by 50 bps in its first rate rise since 2011. As reported by Reuters, the move brought an end to eight years of experimenting with negative rates. Read more

FT: EU lawmaker calls for ban on ‘payment for order flow’

Danuta Hübner, a senior lawmaker in the European Parliament, said in a draft statement seen by the Financial Times (FT) that the concerns around the practice known as payment for order flow are “symptomatic of a broader issue” of national EU regulators interpreting rules differently. In her note, she said, “the rapporteur maintains the initial proposal” of the European Commission, which is to ban the practice. Read more

Finextra: UK to regulate stablecoins as part of Finance bill

Fintechs and crypto asset providers have welcomed the UK government’s decision to bring stablecoins into regulatory scope as part of the recently published Financial Services and Markets Bill. It marks the first time that the UK’s licensing regime will cater specifically to a crypto asset, Finextra reports. Read more

FINANCIAL REGULATION AGENDA for next week

Monday 25 July

• Council Working Party on the Environment

• IADI ‘Core Principles Practitioners’ workshop

Tuesday 26 July

• Council Working Party of Financial Counsellors

• The Financial Times 'How will the risk of recession impact M&A trends? How prepared are dealmakers for global economic volatility?' event

Wednesday 27 July

• Council Working Party on the 2030 Agenda for Sustainable Development (Agenda 2030)

• Bloomberg Sustainable Business Summit

Thursday 28 July

• Council Working Party on International Environment Issues

• Chatham House ‘Global trade and the transition to an inclusive circular economy’ event

Friday 29 July

• IFRS ‘Exposure Draft and comment letters: General Sustainability-related Disclosures’ consultation

For a full-year overview of key financial regulation events: click here 

The latest EBF Cloud Banking Forum’s paper is out! 

FROM EBF MEMBERS

AEB: Banks and Correos to collaborate to improve access to cash

The Spanish Banking Association (AEB), CECA, and Unacc associations sign a General Collaboration Protocol with Correos to facilitate the withdrawal of money in cash and improve access to basic financial services in rural areas throughout the national territory. This General Protocol for Action in rural areas reflects the will of banking associations to contribute to accelerating progress towards an inclusive economy and not leaving any group unattended. Read more (ES)

SBA: Digital assets into the mainstream

The Swiss financial center has a solid foundation and the best framework conditions to exploit the innovation potential of digital assets. Two central concerns of the Swiss Bankers Association (SBA) are particularly relevant to achieving this goal: on the one hand, a stablecoin issued by regulated and supervised institutions and denominated in Swiss francs, on the other hand, an “equal playing field” for all market players. Read more (DE)

UK Finance: Response to formation of the Capital Markets Taskforce

UK Finance welcomes the formation of the Capital Markets Industry Taskforce, an important initiative that builds upon the work done to boost competition and drive efficiencies in the UK’s capital markets. This will be a forum for policymakers and industry to work together and help ensure capital markets are working to effectively drive investment. Read more

FROM THE INSTITUTIONS

ECB: Commitment to price stability

Raising interest rates was the latest step on the European Central Bank (ECB)'s journey to normalize monetary policy, "and it won’t be the last," says ECB President Christine Lagarde. "There should be no doubt that we are committed to maintaining price stability. That is our job, and we will deliver," she added. Read more

ESMA and EBA publish guidelines to harmonise the supervisory review and evaluation process of investment firms

The European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) published final Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) for investment firms. Read more

EBA: Discussion on 2023 EU-wide stress test methodology

The European Banking Authority (EBA) published its 2023 EU-wide stress test draft methodology, templates, and template guidance, which will be discussed with the industry. The methodology covers all risk areas and builds on the one prepared for the 2021 EU-wide stress test. Some aspects of the methodology have been improved based on the lessons from the 2021 exercise. As a new feature, the projections on net fee and commission income (NFCI) will be based on a top-down model. Read more

FROM THE EBF  this week

EBF response to the European Commission’s targeted questionnaire on Open Finance

The EBF has responded to the European Commission’s targeted consultation on Open Finance. The EBF response notes that the focus for an Open Framework should be in addressing existing gaps in data sharing aspects, including consumer protection, technical obstacles, liability, and a fair distribution of value and incentives for all market actors. Read more

EBF response to European Commission’s Targeted Consultation on the review of the revised Payment Services Directive (PSD2)

The EBF has responded to the European Commission’s targeted consultation on PSD2.  The EBF response notes that overall, PSD2 has contributed to increasing levels of innovation, competition and security, consistent with the objectives of the Directive. Elements such as Strong Customer Authentication (SCA) measures and regulating Third Party Provider (TPP) access to payment accounts are welcomed as overall positive developments in the payments landscape. Read more

EBF/Enerdata joint report on the consequences of the war in Ukraine

The EBF and Enerdata have published a joint report on the consequences of the war in Ukraine. This data-driven report explores the short-term impact and simulates the long-term consequences of the war on European energy and climate policies. Read more

EBF Vacancies: Work with us!

Visit our Vacancies page to learn more about the opening positions at the EBF. 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. 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