📰 EBF Morning Brief - Tuesday 21 January: Davos, IMF, Green Finance, Eurogroup

FROM THE MEDIA

Euractiv: ‘Non-conventional’ measures to finance Green Deal - Breton

EU’s internal market commissioner Thierry Breton suggests tapping into the ECB’s “easy money” and issuing long-term bonds of up to 50 years in order to unlock the €1,000 billion needed to finance the European Green Deal, Euractiv reports. During a visit in Paris on Monday Breton spoke of unlocking non-conventional sources of financing to support the Green Deal, with help from the European Central Bank. Read more

Reuters: IMF predicts sluggish global growth

Global growth appears to have bottomed out but there is no rebound in sight and risks ranging from trade tensions to climate shocks makes the outlook uncertain, Reuters reports from Davos, citing IMF Managing Director Kristalina Georgieva. “We have not reached a turning point yet,” Georgieva said told a news conference on the eve of the annual meeting of the World Economic Forum (WEF) in the Swiss ski resort of Davos. “The reality is that global growth remains sluggish. Read more Deutsche Welle

Euractiv: Business and government leaders gather at Davos 2020

Under the theme 'Stakeholder for a Cohesive and Sustainable World' the 50th edition of World Economic's Forum Davos will start today in Switzerland. Euractiv reported that European Commission's President, Ursula von der Leyen was one of the first to hold a speech stating her presence. Euractiv also notes the warning of the IMF this week on rising trade tensions and the surveyed pessimism by global CEOs by PWC. Read more Cointelegraph

Politico: EU Ombudsman probes EBA's director switch to AFME

The EU Ombudsman has opened a probe into the move of the departing director of the European Banking Authority to the Association of Financial Markets in Europe (AFME), an industry group representing US investment banks, Politico reports. On 1 February, Adam Farkas, executive director of the European Banking Authority is set to become CEO of AFME. Read more

The Guardian: Greenpeace hits out at Davos banks for climate hypocrisy

The world’s leading financial institutions have been accused of hypocrisy over the climate emergency, after providing significant support for the fossil fuel industry over the last five years, reports The Guardian. Read more

MAIN EVENTS today

Start of the four-day World Economic Forum in Davos (Agenda), Davos, Switzerland

European Council: Economic and Financial Affairs Council (Ecofin, Finance Ministers)

Bruegel: The European AI policy: 'Writing the first lines of the code'

CERRE conference: Legal and Technical Challenges of Explainable AI

Lunch Debate EP (Kangaroo Group) on Basel III: Is the Basel agreement compatible with strengthened financing of the European economy?

*All events take place in Brussels unless stated otherwise

FROM THE INSTITUTIONS

Eurogroup: Remarks by Mário Centeno 20 January 2020

Comments by Mario Centeno, President of the Eurogroup, on Monday 20 January following the monthly meeting of EU finance ministers in Brussels. Read more

BIS: The green swan

The Bank for International Settlement has published a study on central banking and financial stability in the age of climate change. This study reviews ways of addressing these new risks within central banks' financial stability mandate. However, integrating climate-related risk analysis into financial stability monitoring is particularly challenging because of the radical uncertainty associated with a physical, social and economic phenomenon that is constantly changing and involves complex dynamics and chain reactions. Read more

ESMA consults on the use of No Data options in securitisation reporting

The European Securities and Markets Authority (ESMA) has published a Consultation Paper on Guidelines on securitisation repository data completeness and consistency thresholds. The consultation’s objective is to help market participants and securitisation repositories to understand ESMA’s expected maximum use of No Data options contained within a securitisation data submission. Read more

FSB publishes annual report on non-bank financial intermediation

The Financial Stability Board (FSB) published the Global Monitoring Report on Non-Bank Financial Intermediation 2019. The report presents the results of the FSB’s annual monitoring exercise to assess global trends and risks from non-bank financial intermediation (NBFI). The annual monitoring exercise is an important part of the FSB’s policy framework to enhance the resilience of NBFI. It covers data up to end-2018 from 29 jurisdictions, which together represent over 80% of global GDP. The FSB focuses particularly on those parts of NBFI that may pose bank-like financial stability risks and/or regulatory arbitrage (i.e. the narrow measure of NBFI). Read more

EBF MEMBERS IN THE NEWS

UK: Future financial services trade

Angus Canvin, UK Finance's Director of International Affairs, blogged on the topic of future trade policy concerning financial services after 31 January. When the UK leaves the EU on 31 January 2020 the UK will have its own trade policy for the first time in decades. Given financial and related professional services exports generate the largest trade surplus of any UK industry – USD110.6 billion in 2018 – the UK’s policy concerning trade in financial services will be a matter of vital national interest. So too will be the deals and other arrangements that the UK puts in place with key target markets for UK Finance members. Read more

Finland: Financial sector increases cooperation with schools & universities

​The Finnish financial sector is boosting its competitiveness through research and competence development. Cooperation with social partners is providing insight into the future of work in financial services, and collaboration with educational institutions is helping develop education and training to better match the changing needs of working life. Read more

Norway: The transitional allowance in the financial industry is clear

In the main settlement in 2018, LO and Finans Norge agreed on a transitional allowance scheme based on the wear and tear scheme in the LO / YS and the NHO area. The scheme was also included in the agreement with Finansforbundet. Transition supplements could thus apply to everyone in the industry covered by private AFP. Read more (NO)

FROM THE EBF

EBF’s views on the evaluation of the Payment Accounts Directive

The EBF acknowledges that the Directive represents an important and well-known tool supporting harmonising consumer protection rules on payment accounts within the Union. We also note that the recent transposition deadline of the Directive means that its complete impact and capabilities have still to fully unfold and it is impossible, at this point in time, to have a full assessment of the impact of the Directive in the market. Read more

PRIIPS KID review joint consultation – EBF responds

On behalf of the European banking sector, the EBF has submitted its comments to the European Supervisory Authorities (ESAs) on the consultation paper setting out proposed amendments to the Commission Delegated Regulation (EU) 2017/653 (PRIIPs Delegated Regulation). Read more

BANKING ESSENTIALS webinar
Tuesday 18 February, 15:30 CET

Navigating AML Compliance: Opportunities & Challenges
by EBF and S&P Global Market Intelligence

Click here for more info and for registration

ABOUT THE EUROPEAN BANKING FEDERATION

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from 45 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.