FROM THE MEDIA

FT: Eurozone economic forecasts slashed as fresh lockdowns imposed

Fresh lockdowns announced across Europe in recent days to contain the resurgence of the coronavirus pandemic have triggered a flurry of downgrades to economic growth forecasts as restrictions on activity threaten the continent’s recovery. The eurozone economy is now expected to shrink by 2.3 per cent in the fourth quarter of this year, according to economists surveyed by the Financial Times (FT) — a worse performance than they had predicted before the restrictions were announced. Read more (€)

Reuters: Three banks seal merger to form Hungary No.2 banking group

State-owned Budapest Bank and MKB Bank and savings group Takarekbank (MTB) have signed a deal to form Hungary’s second-largest banking group, the minister responsible for the agreement told state news agency MTI late on Friday. According to Reuters, the deal was widely expected after the three banks announced a strategic alliance in May. It marks a new chapter in the shake-up of a banking system that has seen local players gain influence under nationalist Prime Minister Viktor Orban. Read more

Coindesk: Lagarde seeks public comments about a digital Euro

European Central Bank President Christine Lagarde Sunday announced an ECB survey of public opinion regarding the issuance of a digital euro, implying the central bank is considering a retail central bank digital currency (CBDC), not just one intended for use between banks, which would represent a much more profound change in the way finance works, according to Noelle Acheson, CoinDesk’s director of research. Read more

Politico: Banks near day of reckoning on bad loans

Banks are nearing a day of reckoning on bad loans despite government measures to ease the blow for borrowers. Governments' guarantees, payment holidays and wage support for workers have delayed the pain for lenders by helping businesses and households through the pandemic, Politico reports. But the steps are also complicating the picture for Europe's banks, which are coming under pressure from regulators to assess the real damage to their balance sheets. Andrea Enria, the eurozone's top banking supervisor, has warned lenders that “now is the time” to identify borrowers who have fallen behind on their payments and reclassify loans on a case-by-case basis. Read more (€)

Reuters: EU won't delay sustainability disclosures for banks 

Banks and insurers must comply with a new European Union law on sustainability-related disclosures from March even though detailed guidance on how it should work in practice won’t be ready, the bloc’s executive body said on Friday, Reuters reports. The EU approved the law last year to increase transparency on how banks, insurers, financial advisers and funds consider sustainability risks in their investment decisions and advice to investors. Read more

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TECH MEETS FINANCE: NEWCOMERS IN THE FINANCIAL ECOSYSTEM

ONLINE conference, Thursday 5 November, 15:00 CET

The 'Tech meets finance: newcomers in the financial ecosystem' online conference taking place on Thursday 5 November will provide insights into how European banks, regulators and BigTech companies are perceiving these changes. With the European Commission’s Digital Services Act coming up, conversations will touch upon the role for new ex-ante regulation and the protection of fair competition and innovation required for a prosperous Europe.
 

Register and find out more HERE

MAIN EVENTS today

• Erste Group Bank AG Q3 report

• Bundesbank ‘Analytical tools for monetary policy’ online course

FROM THE EBF MEMBERS

UK Finance on the FCA announcement on mortgage payment deferrals

Banks and building societies have agreed with regulators and HM Treasury to extend the provision of mortgage payment deferrals of up to a maximum of six months in the light of the tightened Covid-19 restrictions announced by the prime minister on Saturday, UK Finance reports. Read more

CBA: Citizens' savings continue to grow at a rate of 4% per year

Although this year's Savings Day is marked by the deepest recession in the world since the Second World War due to the consequences of the Covid-19 crisis, citizens' funds with Croatian banks continued to grow at an annual rate of around 4%, the Croatian Banking Association (CBA) reports. Read more (HR)

SBA: Update on the reform project "Commercial employees 2022".

The reform project "Commercial Employees 2022" is well underway. Since the previous issue of Insight, published on 30 June 2020, the Swiss Bankers Association (SBA) has been able to ensure that banking-specific bank apprenticeship content will continue to form part of the compulsory tests for the end-of-apprenticeship examination after the reform. Read more (FR)

Czech Banking Association: Postponement of loan repayments

The repayment moratorium ends on 31 October. From November, therefore, all those who requested a deferral must return to repay their loans. The Czech Banking Association Presidium called on member banks to actively address the situation of their clients who, in connection with the end of the moratorium and as a result of newly adopted government measures, have difficulty in repaying their liabilities in an individual approach and in an effort to offer a specific solution to a specific client's situation. Read more (CE)

NVB: Climate Commitment: Action plans and objectives

More than half of the financial institutions have signed up to the Climate Commitment already publish the CO2 content of their investments and financing, while the sector has only committed itself to this from the financial year 2020 onwards. This is evident from an overview by KPMG of the current measurement methods, which was sent to the House of Representatives last Friday, the Dutch Banking Association (NVB) reports. Read more (NL)

FROM THE INSTITUTIONS

Video conference of the European Council: Main results

EU leaders met via video conference on 29 October 2020 to discuss the need to strengthen the collective effort to fight the Covid-19 pandemic. They focused on testing and tracing policies and vaccines. They also issued a statement on the terrorist attacks in France and touched upon the relationship with Turkey. Read more
 

ESMA makes new bond liquidity data available

The European Securities and Markets Authority (ESMA) has made available new data for bonds subject to the pre- and post-trade requirements of the Markets in Financial Instruments Directive (MiFIDII) and Regulation (MiFIR) through its data register. Read more

DG FISMA letter on sustainability-related disclosures published

The Commission has published a letter from The Director-General of DG FISMA, John Berrigan, on the application of Regulation (EU) 2019/2088 on the sustainability-related disclosures in the financial services sector. Read more

The IFRS has published proposed changes to the IFRS Taxonomy 2020

The IFRS Foundation has published proposed changes to the IFRS Taxonomy 2020. The proposed changes include new elements reflecting common reporting practice and new and amended labels to clarify the accounting meaning and intended use of some existing elements. The deadline for submitting comments is 5 January 2021. Read more

EBA consultation on revised Guidelines on sound remuneration policies

The European Banking Authority (EBA) launched a public consultation on revised Guidelines on sound remuneration policies.  This review takes into account the amendments introduced by the fifth Capital Requirements Directive (CRD V) in relation to institutions’ sound remuneration policies and in particular the requirement that those remuneration policies should be gender neutral. The consultation runs until 29 January 2021. Read more

European Commission weekly schedule

European Central Bank weekly schedule

Find out more about the ECB's engagements and activities for the upcoming week. Read more
 

European Parliament weekly schedule

Find out more about the Parliament's engagements and activities for the upcoming week. Read more

FT Global Banking Summit

Rebuilding, Redefining and Repositioning for Growth

Digital Conference, 1- 3 December, 2020
 

2020 is proving to be a year of unprecedented uncertainty in the banking world. All projections and strategies have been thrown into chaos by the global pandemic, and it will be some time before the full impact can be estimated. The Financial Times’ landmark Global Banking Summit, spanning multiple time zones, provides an unrivalled platform for dialogue between banking and finance leaders, incumbents and challengers, regulatory organisations and technology partners to evaluate the industry’s response to the crisis and to develop key plans and priorities for 2021 and beyond. Speakers will include notable figures from the finance world, with keynote and panel contributions from senior banking executives, national and international regulators, and eminent thought leaders. Read more

ABOUT THE EUROPEAN BANKING FEDERATION
 

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations. 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.

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