EBF MORNING BRIEF Tuesday 20 April 2021 Good morning. Here are the top news stories and events in European banking, financial regulation and EU policy, brought to you by the European Banking Federation.
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FROM THE MEDIA
FT: ECB cracks down on deficiencies in big banksâ risk modelling The biggest eurozone banks have repeatedly been too optimistic in their risk-modelling, the European Central Bank said as it presented the results of a five-year review that has wiped out a chunk of their capital ratios, FT reports . The findings of the review appear to confirm longstanding suspicions among regulators and analysts that larger banks have often artificially inflated the strength of their balance sheets by underestimating the riskiness of their assets, giving them a short-term advantage over more cautious rivals. Read more (âŹ)
WSJ: Anti-money-laundering prosecution deals setbacks to European banks
Failures to police money laundering procedures hit two major banks in Europe, dealing a further setback to a region that has struggled to stop financial institutions from serving as conduits for illicit transactions. ABN Amro Group NV said Monday that it had agreed to pay around $575 million to settle a criminal case accusing the Dutch lender of violating money-laundering and terrorism financing regulations repeatedly for several years, WSJ writes. Also Monday, the head of Denmarkâs largest bank, Danske Bank A/S, resigned after he was named as a suspect in the ABN Amro case. Read more (âŹ) Reuters: EU considers tightening law after inquiry into BlackRock contract The European Commission has said it will consider forcing companies to disclose conflicting interests when they bid for EU-funded contracts, following an inquiry into its appointment of a division of BlackRock to help develop green banking rules, Reuters reports. Read more |
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MAIN EVENTS today For a full-year overview of key financial regulation events: click here |
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FROM THE EBF MEMBERS
NVB: Fight against money laundering: 'Many steps have been taken but we are not there yet'
The news about the settlement in the investigation at ABN AMRO into anti-money laundering processes comes as a shock, according to the Dutch Banking Association (NVB) chairman Chris Buijink: 'As a sector, we have taken many steps in recent years to prevent our systems from being abused by criminals, but the shortcomings at ABN AMRO show that we are not there yet. Read more (NL)
UK Finance: Investing in Women data collection
Jennifer Tankard, UK Finance Principal, Invoice Finance and Commercial Finance, discusses the results of new data gathered from the Alison Rose Review of Female Entrepreneurship to enable a better understanding of entrepreneurial gender parity. Read more
AEB: Foreword by JosĂ© MarĂa RoldĂĄn to the book 'La sostenibilidad y el nuevo marco regulatorio e institucional de las finanzas sostenibles'
'Without common and clear rules we cannot move towards a fairer and more sustainable economy.' The Spanish Banking Association (AEB) president, JosĂ© MarĂa RoldĂĄn, explains this in the foreword to the book by Arturo Zamarriego and JosĂ© MarĂa LĂłpez/ Read more (ES) |
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FROM THE INSTITUTIONS
Council of the EU: ECOFIN main results
Ministers took stock of the current economic situation and outlook. The Commission and the ECB shared their views on the current economic and financial situation. The Commission also provided an update on the implementation of the temporary framework for state aid, which enables member states to support their economies more flexibly during the pandemic, and explained its links with the national recovery and resilience plans. Read more
Remarks by Executive Vice-President Dombrovskis at the informal ECOFIN press conference
Executive Vice-President Dombrovskis noted that the EC has received information from all but one of the EU27 on national recovery and resilience plan intentions. However, he emphasised that progress on formal submission varies. Furthermore, he highlighted that the financing for Next Generation EU will make the EU one of the largest euro-denominated issuers, particularly of green bonds. Read more ECB: Reliability and Comparability of Banksâ Internal Models ECB published the results of its targeted review of internal models (TRIM). Large and more complex banks typically use internal models to determine some of their risk-weighted assets, which serve as a basis for banks to calculate their capital needs. 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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