EBF MORNING BRIEF      Wednesday 12 October 2022

FROM THE MEDIA

Bloomberg: ECB window for big rate hikes narrows with recession

The European Central Bank (ECB)’s window for outsized interest-rate increases is closing as a recession looms and borrowing costs approach levels that no longer offer support, Bloomberg reports. The hawks who steer ECB policy have only a limited opportunity to deliver more big hikes. That chance could amount to the next meeting in October, with markets already betting it will deliver a repeat of the historic 75 basis-point step. Read more

CoinDesk: Slicing the elephant: Inside the design of a Digital Euro

'There are plenty of decisions yet to be made,' the Head of the European Central Bank’s digital euro project Evelien Witlox tells CoinDesk. One of the issues is what kind of rules will apply to financial intermediaries, the banks and payment companies that would process digital euro transactions. According to Witlox, the rulebook could look like the direct debit messaging standards, allowing more flexibility in how the digital euro is used. Read more

Risk.net: EU tweaks set to temper Basel III capital hike by a third

EU specific adjustments to the Basel III rules are expected to limit the impact on banks’ capital requirements by more than four percentage points, data from the European Banking Authority (EBA) shows. As pointed out by Risk.net, the reform package is set to increase the average Tier 1 capital requirement by 15% compared with end-2021 levels. Read more

MAIN EVENTS

• Council Working Party on Tax Questions (Indirect Taxation)

• Council Working Party on Financial Services and the Banking Union (Financial Services)

• Council Horizontal Working Party on Cyber Issues

• Deadline for submissions on European Commission consultation on tax evasion and aggressive tax planning in the EU

• EPFSF Annual Reception 2022

For a full-year overview of key financial regulation events: click here 

FROM EBF MEMBERS

Finance Latvia: Parents think their children lack financial literacy

In Latvia, one sixth of parents believe that their children aged 7 to 17 lack financial literacy and that is why they do not open a bank account and issue a payment card. This is what emerge from the survey conducted by SEB banka. As reported by Finance Latvia, SEB banka is implementing the School Ambassadors program to promote young people's knowledge and skills in finances. Read more (LAT)

Finance Denmark: Still more expensive homes for sale

Homes for sale continue to have higher prices than a year ago. This despite the fact that there are more homes to choose from, and they are for sale for a longer time. This is shown by the latest figures from Finance Denmark. Read more (DK)

Febelfin: New taxes on banks undercut support from the economy​

The Belgian government decided to significantly increase the contributions from the banks by partially abolishing the tax deductibility of the Belgian annual tax on credit institutions. Febelfin deeply regrets this and believes that a strong banking sector is essential for supporting the economy and society. Read more (NL)

FROM THE INSTITUTIONS

ESMA: CCP Supervisory Committee releases strategic objectives 

The European Securities and Markets Authority (ESMA)'s CCP Supervisory Committee published strategic objectives. Three strategic objectives are identified: strengthening EU CCP resilience, addressing third-country CCP cross-border risks, and deepening risk and data-driven supervision. Read more

ECB: The transmission of monetary policy

In calibrating the European Central Bank (ECB) future monetary policy decisions, it will be essential to closely monitor the impact of ECB decisions on the different stages of the transmission mechanism. This is what ECB Chief Economist Philip R. Lane said at the conference on “EU and US Perspectives: New Directions for Economic Policy”. Read more

BIS: Statistical matching for anomaly detection in insurance assets granular reporting

Since 2016, insurance corporations report granular asset data in Solvency II templates on a quarterly basis. This paper by the Bank for International Settlements (BIS) addresses this issue as a statistical matching problem and a supervised classification approach is proposed to detect such anomalies. Read more

FROM THE EBF  

New EBF Vacancies! Work with us!

Visit our Vacancies page to learn more about the opening positions at the EBF. 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. 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

European Banking Federation