EBF WEEKLY + FINANCIAL REGULATION AGENDA
for the week starting Monday 29 March 2021 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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FINANCIAL REGULATION AGENDA for next week Monday 29 March: OECD-ITF Webinar: Addressing the Gender Bias in Artificial Intelligence Data Tuesday 30 March: Wednesday 31 March: Thursday 1 April: EBF Communications and CSR Steering Group virtual meeting For a full-year overview of key financial regulation events: click here |
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FROM THE MEDIA this week
Reuters: EU needs transition measures for banks post-COVID
European banks must be helped to cope with an expected surge in corporate bankruptcies as the bloc emerges from the pandemic crisis, including through a more flexible definition of default, a study prepared for the European Commission said, Reuters reports. Read more
FT: Britain and EU close to agreeing on a forum for financial services
The FT has reported that the EU-UK are to establish a forum for co-operation in financial services. The MoU between both parties is close to completion. Commissioner McGuinness has said that she is hopeful there will be an ‘imminent’ agreement. However, it is likely major barriers for the City of London will still exist. Indeed, on equivalence McGuinness stated that “We will not be recreating the conditions of the single market…”. Read more (€) Daily Telegraph Bloomberg
Reuters: Battle looms over regulation of smaller EU banks A review of European Union rules for dealing with failing banks should not become an escape route for medium-sized lenders to avoid tougher requirements, Reuters reported on Tuesday. Elke Koenig, chair of the SRB, which deals with failures at the EU’s top lenders, said targetted changes were needed to the bloc’s rules for failing lenders that aim to avoid the taxpayer bailouts seen during the financial crisis over a decade ago. Read more
Euractiv: Commission on track for digital levy proposal by June Euractiv reports that European Commission V-P Vestager has told MEPs that despite progress at the OECD, the EC is on target to present its plans for a digital tax in June. In regards to the OECD negotiations for an international framework, V-P Vestager welcomed the dropping of the ‘safe harbour’ red line of the US. Read more
CNBC: Crypto is a ‘speculative vehicle’ and should be regulated
Cryptocurrencies are used to evade laws and should face more regulation, according to the general manager of the Bank for International Settlements (BIS). Many digital coins are “used to do some arbitrage, or to circumvent some regulations,” Agustin Carstens told CNBC’s Jourmanna Bercetche in an interview aired Wednesday. Read more |
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FROM EBF MEMBERS this week
FFI: Risk reduction needed before completion of Banking Union
Finance Finland (FFI) states that now is not the time to expand risk sharing. Finalisation of the Banking Union is now on the table in the EU but the financial sector wants substantial risk reduction before completion of the Banking Union. Read more (FI)
FBF: Banks fight financial fragility and over-indebtedness
Pierre Bocquet, Director of Retail Banking of the French Banking Federation (FBF) discusses financial fragility, banking inclusion and the prevention of over-indebtedness. French banks encourage their customers to anticipate difficult situations, and support them in finding solutions in the event of financial difficulties. Read more (FR)
HUB: Banks and ministries work together to teach about money
The Croatian Banking Association (HUB), together with an Operational Working Group composed of public and private stakeholders, is actively participating in the celebration of Global and European Money Week with activities such as classroom instruction, seminars, conferences, the European Money Quiz and more. Read more (HR)
Finance Norway: Lillestrøm pupils win EMQ in Norway
Class 10D from Stave School won European Money Quiz (EMQ) 2021. Over 80 classes from all over the country participated in the Norwegian championship. "We congratulate class 10D and expect they will get good help from one of the local banks to become even better in personal finances, until the European finals in April", says Hilde Johansen from Finance Norway. Read more (NO)
UK Finance: Fraud - The Facts 2021
UK Finance is calling for new legislation to make online platforms responsible for taking down fraudulent content and better protect consumers from these scams. Read more |
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FROM THE INSTITUTIONS this week
Eurogroup agrees on need to maintain supportive budgetary stance, examines impact of pandemic on euro area economic sectors
Referring to the Commission communication "One year since the outbreak of COVID-19: fiscal policy response", ministers agreed on the need to maintain a supportive budgetary stance in 2021 and in 2022, which will pave the way for recovery, and adopted a statement to that effect. The Eurogroup also reviewed the impact of the pandemic on various sectors of the euro area economy and the possible structural changes it may have triggered. Read more |
ECB: Role of profit margins in the adjustment to the COVID-19 shock While corporate sector profits fell during the crisis, profit margins have been particularly resilient relative to the depth of the recession. Job retention schemes likely played an important role in making this so, the ECB reports. Read more
EBA takes steps to address ‘de-risking’ practices
EBA published three regulatory instruments to address de-risking practices based on evidence gathered in its call for input. The instruments clarify that compliance with anti-money and countering terrorist financing (AML/CTF) obligations in EU law does not require financial institutions to refuse, or terminate, business relationships with entire categories of customers that they consider presenting a higher ML/TF risk. Read more
BIS Research on Asset managers, market liquidity and bank regulation
The Bank of International Settlements (BIS) has published a working paper on asset managers, market liquidity and bank regulation. Focusing on banks' role as market-makers, the paper examines the implications of their regulatory constraints on asset managers' risk-taking behaviour. Read more
ESMA updates BMR Brexit statement
The European Securities and Markets Authority (ESMA) has updated its statement on the application of key provisions of the Benchmark Regulation (BMR). The latest update specifies the EU's regulatory approach towards UK-based third country benchmarks as well as the UK endorsed and recognised benchmarks. 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.
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