| EBF MORNING BRIEF Wednesday 22 June 2022 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
Bloomberg: ECB’s Kazimir says negative rates must be ‘history’ by September
The European Central Bank (ECB) should exit sub-zero interest rates in September, Governing Council Member Peter Kazimir said. Asked about an ECB tool to defend the integrity of the euro region, he said countries must solve their problems and the banking and fiscal union should be finished properly, Bloomberg reports. Read more
Reuters: Insurance watchdog calls for pan-EU policy protection
As reported by Reuters, harmonised insurance protection schemes of last resort are needed across the European Union as consumers increasingly buy policies from outside their country, the bloc's insurance regulator said on Tuesday. Petra Hielkema, chair of the European Insurance and Occupational Pensions Authority (EIOPA), said cross-border premiums have been steadily increasing over the past five years compared with domestic premiums. Read more
S&P Global Market Intelligence: Climate stress test exposes vulnerability of UK banks' mortgage books
UK banks projected substantial loan loss increases in their mortgage portfolios under the Bank of England's climate stress test, highlighting the potential vulnerability of the country's largest mortgage providers. According to S&P Global Market Intelligence, banks were assessed under three stress scenarios toward 2050: early, late or no additional action against climate change. Read more |
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MAIN EVENTS
For a full-year overview of key financial regulation events: click here
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THE LATEST SUSTAINABLE FINANCE ROUNDUP IS OUT
The third edition of the Sustainable Finance Roundup by the European Banking Federation is out! Discover some of the latest insights and perspectives on sustainability in banking 👇
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EBF and Deloitte report on the role of the CSO -
EBF Gonzalo Gasós Denisa Avermaete ⚡️ and Lukas Bornemann on 'Pillar 1 capital charge for climate risk: Wrong tool for the right purpose' -
Jean-Paul Gauzès, EFRAG Board President on EFRAG’s progress in the development of European sustainability reporting standards
... and many more! |
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FROM THE EBF MEMBERS
Febelfin: “When it comes to cybersecurity, the better educated we are, the better we can protect ourselves. This is a high priority for EBF”
The fight against cybercrime is still a major challenge, in which the banking sector and other stakeholders play a key role. Cybersecurity is a core concern and requires constant attention, especially in the current geopolitical context. Febelfin interviewed Alexandra Maniati, Senior Director, Innovation & Cybersecurity at EBF, and Dimos Karalis, Policy Adviser, Cybersecurity & Innovation at EBF to explore how the EBF is handling the issue of cybersecurity. Read more
NVB: Banking and taxonomy: Banking sector a mirror of making the economy more sustainable
The EU taxonomy is seen as a real driver towards a sustainable economy through the financial sector. Financial institutions and stakeholders must map and publicly report on economic activities that the taxonomy classifies as 'green'. A challenge because of the complexity. But also a great opportunity for the banking sector, according to Maryse Hazelzet of the Dutch Banking Association (NVB): “Hopefully the taxonomy will also start a movement towards more innovation and green products.” Read more (NL)
UK Finance: AI fairness in financial services
With the ongoing development and growing application of artificial intelligence (AI), analytics and automation there is increasing public and regulatory interest in ensuring that any potential risks stemming from these technologies are mitigated. A key area of concern is around ‘bias’ and AI fairness. A paper by UK Finance in collaboration with Herbert Smith Freehills explores ideas of AI fairness and what these mean for financial services firms, with a focus on the key overlapping regulatory considerations. Read more |
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FROM THE INSTITUTIONS
EBA: Use of COVID-19-impacted data for internal credit risk models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using internal ratings based (IRB) models. These principles will be part of a supervisory handbook, which the EBA will publish later in 2022 with the objective to ensure a harmonised approach in the use of COVID-19 data, especially where the use of moratoria and other public measures may have led to changes in default rates. Read more
ECB: Climate change-related regulatory risks and bank lending
A paper by the European Central Bank (ECB) identifies the effect of climate change-related regulatory risks on credit reallocation. Evidence suggest that in Europe, banks lend more to firms that could benefit from environmental regulation. Overall, results also indicate that financial implications of regulation associated with climate change appear to be the main drivers of banks’ behavior. Read more
BIS: The future monetary system
According to the latest chapter of the Annual Economic Report of the Bank for International Settlements (BIS), a burst of creative innovation is under way in money and payments, opening up vistas of a future digital monetary system that adapts continuously to serve the public interest. The chapter also discusses the pitfalls of crypto and DeFi innovations and promote a future monetary system built on central bank public goods. Read more |
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FROM THE EBF
EBF response to European Commission’s Targeted Consultation on a digital euro
Continuing its active and multi-level contribution to the public debate on the possible creation of a digital euro, the EBF has responded to the related European Commission’s targeted consultation. This is a key topic for the European banking industry as a digital euro seeks to respond to the unprecedented speed of digitalization of the economy and payments, and has the potential to fundamentally impact the banking system. Read more
New EBF Vacancies! Work with us!
Visit our Vacancies page to learn more about the opening positions at the EBF. 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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