EBF WEEKLY + FINANCIAL REGULATION AGENDA
for the week starting Monday 14 September 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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President Von der Leyen delivers the State of the Union on Wednesday

European Commission President Ursula Von der Leyen's 2020 State of the European Union debate (SOTEU) comes at a time of uncertainty. It is a time of resonating change, a time of great upheaval as European and global economies have been hit hard by Covid-19 restrictions. On Wednesday 16 September Von der Leyen will deliver her SOTEU address before the European Parliament in Brussels. The speech will be followed by a plenary debate with members of the European Parliament. The Covid-19 crisis changed people's lives but it did not change the Commission's ambitions. The priorities that were set at the beginning of the mandate remain valid in addressing today’s challenges. The Commission remains fully determined to deliver on its flagship initiatives, the European Green Deal and the Digital Strategy, as they are key to relaunching the European economy and building a more resilient, sustainable, fair and prosperous Europe. Read more Live streaming

The financial agenda for the next week

Tuesday 15 September:

Thursday 17 September:

Friday 18 September:

For more events check the EBF planning calendar HERE
 

*All events take place in Brussels unless stated otherwise

BANKING ESSENTIALS WEBINAR

Sustainability & Going Green:

How will Banks adapt to this new world?

Tuesday 15 September

As regulatory pressure mounts it is imperative that banks have a clear plan to address climate risks and to finance a green agenda. Join our experts as they discuss how banks can achieve a successful climate management strategy. Register HERE

FROM THE MEDIA this week

BBC: Brexit: Trade talks hang in balance as UK rejects EU ultimatum

Talks over a trade deal with the EU are hanging in the balance amid a stand-off over the UK's plans to override part of the Brexit withdrawal agreement, the BBC reports. The EU has warned the UK it could face legal action if it does not ditch controversial elements of the Internal Market Bill by the end of the month. Read more The Guardian Politico

Bloomberg: Spanish Banks in Play as Dealmaking Starts to Take Hold

Already facing intense competition, negative interest rates and fragmented markets, banks in the worst-hit countries such as Spain and Italy are taking the lead in kickstarting long-awaited merger talks on the continent, Bloomberg reports. The coronavirus crisis is adding extra impetus as lenders prepare for a potential surge in bad loans and weigh options for driving down expenses. Read more Expansion (ES)
 

The Banker: Is M&A the way out for Europe’s banks?

Analysts often argue the case for M&A as a way of boosting returns but bank executives are usually more cautious pointing to the risks of mergers, especially cross-border ones, writes Brain Caplen, Editor of The Banker. Regulators tend to worry more about the downside risks than the upside gains, yet in July the ECB signalled a more pragmatic approach on the basis that deals have the potential to strengthen the financial system. Read more
 

Irish Times: Ireland's McGuinness given ‘important financial portfolio’

Fine Gael/EPP MEP Mairead McGuinness has been picked to be the next Irish commissioner following the resignation of Phil Hogan, and will be given the financial services portfolio, the Irish Times reported. “Mrs McGuinness has significant political experience on EU issues having been an MEP since 2004, and currently holding the post of first vice-president of the European Parliament,” European Commission president Ursula von der Leyen said as she made the announcement. “This experience is crucial in carrying forward the EU’s financial sector policy agenda and ensuring it supports and strengthens the commission’s key priority, notably the twin green and digital transition. Read more Euractiv Politico

FT: ECB supervisors turn the screw on banks’ Brexit plans

Europe’s top financial supervisor is fed up with waiting for big banks to prepare for Brexit. This is the message European Central Bank officials have given to banking executives this summer, while asking them for “action plans” to make their EU offshoots “operationally self-standing in key areas” by the end of this year when the Brexit transition period ends, writes Martin Arnold at the Financial Times. But the move by the ECB to turn the screw on lenders over their Brexit plans has produced loud complaints. Some bankers privately suspect this is a politically motivated way of putting pressure on the UK as trade talks with the EU enter a crucial stage. 

Reuters: Italy wants to find buyer for Monte dei Paschi by year-end

Italy’s Treasury wants to find a buyer for Monte dei Paschi di Siena by the end of the year to help the bailed-out bank to clean up its remaining problem loans, two sources familiar with the matter said according to Reuters. The government rescued Monte dei Paschi in 2017, taking a 68% stake for 5.4 billion euros ($6.4 billion), but must sell its holding next year to meet the terms of the bailout negotiated at the time with European Union competition authorities. Read more
 

Bloomberg: Danske Debt Scandal Triggers FSA Probe and Police Scrutiny

Danske Bank A/S is the target of a fresh probe involving the police after it emerged that the lender may have misled Denmark’s financial watchdog about its handling of debt collection errors. The Financial Supervisory Authority has given Denmark’s biggest bank until Sept. 10 to answer a series of questions relating to the case, including exactly when Danske first discovered there was something wrong. Read more.

FROM THE MEMBERS this week

FBF: Banks: "This crisis is a full-scale stress test".

On 1 September, Philippe Brassac, CEO of Crédit Agricole SA, took over as Chairman of the French Banking Federation for a year. One week after the presentation of the recovery plan, he details in an interview with "Les Echos" the role of banks in this new phase of the crisis and assures that French institutions are in good health to continue financing the economy. Read more (FR)

UK Finance: Expanding the Banking Protocol scheme

The Banking Protocol prevented a customer from losing £165,000 to a romance fraudster. Christine Farrow, UK Finance, details how the scheme has helped to prevent millions of pounds of fraud during the Covid19 pandemic. Read more

Finance Finland: Green mortgage lending requires energy certificates

Finance Finland (FFI) proposed to Minister of the Environment and Climate Change Krista Mikkonen that mortgage lenders should have access to energy certificates for purposes of the lending process. Enabling this access requires a legislative amendment. Read more

AEB: Interview with José Luis Martínez at Capital Radio

"Banking has played and continues to play a decisive role in lessening the impact of the health crisis on families and businesses, and in boosting economic recovery," said José Luis Martínez, the Spanish Banking Association (AEB) spokesperson in an interview with Capital Radio, in which he also talked about competition, mergers and banking profitability. Read more (ES)

SBA: Annual Conference: Banks are a reliable partner to the economy

The Swiss Bankers Association (SBA) annual media conference focused this year on the corona crisis, its impact on the economy, and the role of the banks during this time. Swiss banks are a stable pillar of the economy. The solid development of operating results, the rise in assets under management and the leading global position of the banks in cross-border wealth management attest to their competitiveness. Read more

FROM THE INSTITUTIONS this week

ECB: Monetary policy decisions

The European Central Bank (ECB) has published the monetary policy decisions that were taken during Thursday’s meeting of the Governing Council. ECB has reviewed its monetary policy strategy which has undergone a process of gradual transformation since it was adopted in 1998. Despite negative interest rates and QE programmes, the ECB has not achieved its inflation target over the last years, possibly the ECB could be more flexibility around its inflation target and consider targeting price growth in a band, in full respect of the ECB’s price stability mandate as enshrined in the Treaty. Press release

EBA: Strengthening the EU legal framework on AML/CFT

The European Banking Authority (EBA) published its response to a European Commission’s call for advice on how to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT). The European Commission issued this call for advice to the EBA to take advantage of its technical expertise across all areas of financial services regulation and because the EBA has a legal duty to lead, coordinate and monitor the EU financial sector’s fight against ML/TF. Read more

WEF: Emerging technology driving evolution in financial services

The World Economic Forum has published a report on emerging technology clusters driving the evolution in financial services. The report highlights four innovation pathways that financial institutions can explore as they seek to build emerging technology capabilities into core strategies. Read more

BIS: Supervisory recommendations for benchmark transition

The Financial Stability Board (FSB) and Basel Committee on Banking Supervision (BCBS) published a report on Supervisory issues associated with benchmark transition. The continued reliance of financial markets on LIBOR poses clear risks to global financial stability. Transition away from LIBOR by end-2021 requires significant commitment and sustained effort from both financial and non-financial institutions across many jurisdictions. Read more

EC: Mairead McGuinness named Commissioner for Financial Services

Mairead McGuinness has been confirmed as Ireland's new Commissioner, taking the Financial Services, Stability, and Capital Markets portfolio. Commission Executive Vice-President Valdis Dombrovskis has been moved to take the Trade Commissioner role. This is subject to approval from the European Parliament. Read more EC von der Leyen tweet

FROM THE EBF this week

AI inception impact assessment consultation: EBF response

 The European Banking Federation (EBF) submitted its response on the European Commission’s Consultation on its Inception Impact Assessment (IIA) on a Proposal for a legal act of the European Parliament and the Council laying down requirements for Artificial Intelligence (AI). Read more

Digital Services Act (DSA): EBF responds to the EC consultation 

The European Banking Federation has responded to the European Commission’s (EC) consultation on the Digital Services Act, we would like to present the respective key messages prior to the publication of the EC legislative proposal on the Digital Services Act. Read more
 

BCBS consultation on NPL securitisations: EBF response

The EBF has responded to the consultation of the Basel Committee on Banking Supervision on a technical amendment regarding the capital treatment of securitisations of non-performing loans (NPL). Read more
 

Sustainable Finance: EBF responds to EC assessment on disclosures

The European Banking Federation has given its feedback on the EC’s Inception Impact Assessment on the Commission Delegated Regulation on taxonomy-related disclosures by undertakings reporting non-financial information. 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