📰 EBF Morning Brief - Tuesday 10 March

FROM THE MEDIA

S&P, FD: European banks call for critical review of AML regime

The EU regulatory framework governing banks' anti-money-laundering efforts is "ineffective" and needs "critical review," according a new report published by the European Banking Federation, reports S&P Global MI. Compliance spending among European banks has now reached €100 billion annually, with 10% of banking staff being dedicated to compliance tasks, and banks reporting millions of suspicious transactions and activities to national authorities annually. However, only a fraction of cases are prosecuted, reports S&P Global MI, quoting from the report. The Dutch Financial Daily FD points out that the six anti-money laundering directives that have been issued from Brussels so far do not work and should be turned into regulations. Much closer public-private cooperation including enhanced information sharing should be explored while taking into account privacy limits. Read more FD (NL)

Reuters: France, Italy considering regulatory and financial measures

The Italian government is considering a state guarantee scheme to support banks offering debt moratoriums to firms and households grappling with the economic fallout from Italy’s coronavirus outbreak, reports Reuters. In another story, Reuters points out that France is urging European banking regulators to show flexibility towards firms falling behind on their debt payments due to the coronavirus outbreak. Brussels will consider using flexibility in its state aid rules to help EU governments cushion businesses from the coronavirus fallout as officials discuss a widening array of measures aimed at battling the economic damage from the disease, says the FT. According to Reuters EU leaders will hold emergency talks soon to discuss a joint response to the coronavirus. Read more Reuters II FT (€)

Euractiv: Two-tier approach to green investment rules - EU experts

European policymakers should use a two-tier approach to define sustainable investments in order to smooth the bloc’s transition to a low carbon economy, a group of industry experts said, according to Euractiv. The first category proposed by the group would meet strict ‘green’ criteria, with the second including investments that can prove they “do no significant harm”. The European Commission will use the Technical Expert Group’s recommendations to develop rules defining what qualifies as a green investment. This ‘taxonomy’ is a key plank of the Commission’s “Green Deal” plan to reduce the bloc’s net greenhouse gas emissions to zero by 2050, through policy measures touching sectors from agriculture, to trade, taxation, energy and industry. Read more Bloomberg Law360 (€)

MAIN EVENTS today

Coronavirus (COVID-19) update - Meetings and visits at EBF

International Bar Association conference: Annual International Conference on Private Investment Funds, London

Council of the EU: Financial Services Attaches meeting

Council of the EU: Working Party of Financial Counsellors meeting

Council of the EU: Friends of the Presidency meeting

Council of the EU: Working Party on Non-Proliferation (Cybersecurity & Data protection) meeting

IBFed Tax Working Group meeting with OECD (video conference)

*All events take place in Brussels unless stated otherwise

FROM THE INSTITUTIONS

Commission: TEG reports on EU taxonomy and EU Green Bond Standard

The Technical Expert Group on Sustainable Finance has published the report on the EU’s classification of green economic activities, and a report on the EU Green Bond Standard. The report on taxonomy contains recommendations on the design of the EU’s ‘green list’ including guidance on how companies and financial institutions can use it. The Commission will use this report as a basis to develop rules setting out the EU's classification of green activities for climate change mitigation and climate change adaptation. The Commission is presenting this report to the public on Thursday 12 March and will publish final climate rules for the taxonomy before the end of 2020. Read more

ESMA consults on draft technical standards for benchmarks

ESMA has launched a consultation on draft Regulatory Technical Standards under the Benchmark Regulation covering governance, methodology, infringements reporting, and critical benchmarks. ESMA will consider the responses to this consultation when developing the draft RTS for submission to the European Commission for adoption in the final legal text. The closing date for responses from stakeholders is 9 May 2020. Read more

Council: Interim report of the High Level Forum on the CMU

The Council has published an interim report on the High Level Forum on the Capital Markets Union. It calls for strong and immediate political support at the highest level, as well as coordination among all European institutions to push for bold reforms. The report concludes that the window of opportunities is closing as other jurisdictions are gradually assuming a bigger role in global markets. Read more

EBF MEMBERS IN THE NEWS

Belgium: Coronavirus: the financial sector provides continuity

In the face of the coronavirus crisis, each sector must adapt and take responsibility in order to limit as much as possible the spread of the epidemic and the negative consequences for the economy and employment in our country. Read more (FR)

Germany: 83 students compete in the SCHULBANKER finale

The finalists of the banking simulation game SCHULBANKER have been determined: 20 teams have qualified for the final of the school competition. A total of 2,836 pupils took part in the banking association's simulation game this year. For the first time in 21 years, the finale will only take place online. Due to the nationwide spread of the Corona virus, the banking association has decided to cancel the finals and awards ceremony in Berlin with a view to the responsibility for its guests. Read more (DE)

Denmark: Many young people cannot say no - to themselves

In Denmark, it is possible to borrow from the age of 18. And in the early 20s, every fourth youngster has a loan. For some, the debt ends up being both large and long-lasting. This is shown in the report "Youth - Debt, Consumption and Savings", published by Finans Danmark today. Read more (DK)

Norway: Large gender differences in household financial equality

A survey of Finance Norway's members shows that there are major gender differences when it comes to who controls the family's finances and assumes financial obligations. - We believe that both parties should have a good overview of the family's finances, loan commitments, how common assets are insured and how they are secured in old age, says CEO Idar Kreutzer of Finans Norge. Read more (NO)

FROM THE EBF

EBF presents recommendations on fighting dirty money in EU

As the European Commission is preparing its next steps towards creating a solid EU framework for fighting money launderers, the European Banking Federation today presented its blueprint with recommendations for an effective EU’s Anti-Money Laundering policy, known as AML. Based on four priorities, Harmonise, Cooperate, Empower and Be Smarter the EBF has formulated 20 concrete policy recommendations that are elaborated in the 40-page EBF blueprint ‘Lifting the Curse of Dirty Money’. The #AMLactions campaign will further promote the content of the blueprint this week. Press Release Full AML Blueprint

PWI International Women’s day Gala: EBF CEO Wim Mijs speech

The banking sector and the lobbying world have both progressed a lot since I started, but gender balance is still not achieved in the sector (banking, or finance more generally) as well as in the trade association business itself. Old ‘traditions’ of lobbying business and old assumptions have changed, more women have joined the ranks of both banks and the trade associations, but as the business gets more competitive, it becomes even more important to ensure that all women have equal opportunities to work, be promoted and have access to finance said EBF CEO Wim Mijs at the Brussels Professional Women International (PWI) Gala on Saturday 7 March in Brussels. 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.