FROM THE MEDIA

Reuters: ECB's Enria backs network of bad banks to mop up bad loans

European Union countries could create a network of national bad banks to mop up an expected wave of unpaid loans as a result of the coronavirus pandemic, the European Central Bank’s chief supervisor Andrea Enria said on Tuesday, Reuters reports. “A European initiative, for instance connecting in a network national AMCs (asset-management companies), via common funding mechanisms and harmonised pricing, could be a useful tool for addressing the expected rise in NPLs (non-performing loans) and ensuring a level playing field within the banking union,” Andrea Enria told the European Parliament. Read more FT (€)

FT: Santander back to profit after quicker customer recovery

Spanish bank Santander swung back into profit in the third quarter and upgraded its full-year forecasts after its customers recovered faster than expected from the initial disruption of the pandemic, the Financial Times (FT) reports. The group reported a net profit of €1.75bn for the three months to September, more than triple the same quarter last year when it took a large writedown on its UK business. Read more (€)

Reuters: Share trading in Europe set to be fragmented by Brexit

The EU’s markets watchdog said on Monday banks and asset managers based in the bloc should execute most of their share trades inside the EU after full Brexit from January, in a step set to fragment cross-border markets, Reuters reports. Large chunks of cross-border share trading are currently done on platforms in London, but Britain’s unfettered access to the bloc ends on Dec. 31. Read more

Euromoney: Can social bonds survive Covid?

The social bond market has boomed as public-sector borrowers raise funding to mitigate the pandemic. Now they need to become long-term options for both banks and corporates. On October 20, the European Union crowned a triumphant year for the social bond market when it raised €17 billion of financing for its Covid-19 employment mitigation programme, Euromoney writes. That took total issuance this year to roughly $80 billion, nearly three times the amount sold in 2019. Read more (€)

S&P Global: Covid-19: Insider threats are on the rise

Prolonged remote working and the pandemic's potential impact on mental health have led banks and cybersecurity experts to warn of a growing challenge around insider threats, and it could be a costly affair for those organizations that fall victim to this form of cyberattack, S&P Global writes. As the pandemic sent staff home across the globe earlier in the year, it created the perfect environment for cybercriminals. But while banks and financial firms rushed to gear themselves up against growing external threats, they may have to look within their organization to address the next big cyber risk. Read more

MAIN EVENTS today

EPFSF webinar: Banking Regulation in a Changed Environment

EBA Board of Supervisors meeting

European Council: Export Credits Group meeting

European Council: Working Group on Combating Fraud meeting

European Parliament: Committee on Women's Rights and Gender Equality meeting

EBF Banking Taxonomy Working Group online meeting

EBF Chief Economists Group online meeting

EBF Retail Committee online meeting

EBI Exchange Academic & Advisory Board online meeting

Deutsche Bank AG Q3 results

For more events check the EBF planning calendar HERE

*All events take place in Brussels unless stated otherwise

Join and register for free

EUROPEAN DATA ECONOMY & OPEN FINANCE:
WHAT DOES IT ALL MEAN?

ONLINE conference, Thursday 29 October, 15:00 CET

The second day of EBF’s Innovation & Cyber Thursdays is devoted to the European Data Economy and Open Finance. The European Commission, through its Data Strategy, has set a goal to build a Single Market for Data in Europe. It has also made fostering a data driven financial sector one of its priorities, including a commitment to present a proposal for a new Open Finance Framework by mid-2022. These two initiatives are not mutually exclusive.

Register and find out more HERE

FROM THE EBF MEMBERS

NVB: Dutch Schuldhulproute online self-test for entrepreneurs

As of Tuesday, entrepreneurs can quickly find out how they are doing financially and where they can go for help with the free online test Geldfit Zakelijk, the Dutch Banking Association (NVB) reports in its latest post. The test is part of the Dutch Schuldhulproute, of which banks were the co-initiators in 2019. Read more (NL)

BPFI published the Mortgage Drawdowns Report for Q3 2020

Banking & Payments Federation Ireland (BPFI) published the latest figures from the BPFI Mortgage Approvals Report for September 2020 and BPFI Mortgage Drawdowns Report for Q3 2020. Latest figures show significant increase in mortgage approvals for September with unsurprising decline in mortgage drawdowns in Q3 2020. Read more

FD: It is expensive and unnecessary for Denmark to be the EU's dux

What do we do most often in Denmark when the EU makes demands on the legislation? We over implement. Goes just a little further than is required of us. It may be good in some areas to be a dux, but in relation to the financial sector, it is going too far right now. This week, the Minister of Trade and Industry will present a bill that will implement EU legislation much faster than has been chosen to do in our neighbouring countries, Ulrik Nødgaard Finance Denmark CEO writes in his latest blog post. Read more (DK)

UK Finance: Forging a credible path to net zero

Last saw the final edition of UK Finance’s autumn climate webinar series, which featured an interview with Rhian-Mari Thomas, Chief Executive of Green Finance Institute. Ben Rattenbury, UK Finance Manager, Sustainability, provides a summary in the latest UK Finance blog post. Read more

FROM THE INSTITUTIONS

ECB: The euro area bank lending survey – Third quarter of 2020

The ECB has published the results of the October 2020 euro area bank lending survey. It found that credit standards have tightened for loans to enterprises and to households. Furthermore, firms’ demand for loans moderated due to lower emergency liquidity needs. Read more

Commission: EUR 17 billion EU SURE social bond listed on LuxSE

The Luxembourg Stock Exchange (LuxSE) has marked the listing of the first social bond issued under the EU SURE programme. The EU established SURE (Support to mitigate Unemployment Risk in an Emergency) earlier this year to help protect jobs and workers across Europe, which have been heavily impacted by the COVID-19 pandemic. The social bond will be displayed on the Luxembourg Green Exchange (LGX). Read more

ESMA endorsed credit rating agencies

The European Securities and Markets Authority (ESMA) has published a public statement on credit ratings elaborated in the UK after the end of the transition period. With this statement ESMA confirms that EU CRAs will be able to endorse credit ratings elaborated in the United Kingdom after the end of the transition period. Read more

BIS: The banking crisis in Ireland

Ireland’s banking crisis of 2008 taught policymakers important lessons, including the limits of emergency liquidity and of fiscal support, BIS writes in its latest article. 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.

Recommend the EBF newsletters to a colleague. Click here to sign up!
European Banking Federation