| EBF MORNING BRIEF Wednesday 8 September 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
Reuters: EU supervisors urge implementation of global banking rules
The European Central Bank (ECB) and national central banks across the EU called for the bloc to fully implement remaining international banking capital rules to prevent a repeat of the global financial crisis. In an open letter, nearly two dozen central bankers and regulators urged the Commission to stick to “the letter and the spirit” of the rules. As reported by Reuters, the letter defended the “output floor”, which limits large banks’ discretion in setting their own capital requirement, while warning against a “deviation” to a more flexible “parallel stack approach”. The European Banking Federation (EBF) said the central banks were advocating an “extremely stringent interpretation” of the Basel rules, which contradicts a G20 mandate not to significantly increase capital requirements. Read more
International Banker: Digital banking with the human touch
The COVID-19 has accelerated the digitalization of banking. But while millions of consumers feel very comfortable using digital banking services for routine transactions, it would be a mistake to think they no longer want personal relationships with their banks. Research has revealed that although SMEs acknowledge the benefits of the revolution, there is an overwhelming desire for a blend of digital functionality and human interaction. "The future will not just be about high tech for banking customers. It will be about high-tech, high-touch experiences", Nick Fahy, CEO of Cynergy Bank wrote in an article for the International Banker. Read more S&P Global Market Intelligence: Italy's deleveraging success could help limit messy COVID-19 defaults Italy's financial system appears much better equipped to handle the impact of the coronavirus pandemic than previous adverse events thanks to a sharp reduction in the number of highly indebted companies since the global financial crisis, S&P Global Market Intelligence data shows. But as Italy emerges from the coronavirus crisis, demand for fresh credit among the country's private companies is likely to be lackluster, which could weigh on lenders' growth prospects. Read more |
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MAIN EVENTS
For a full-year overview of key financial regulation events: click here
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FROM THE EBF MEMBERS
FBF: The development of learning in higher education is an essential vector of social cohesion
Nicolas Théry, President of the French Banking Federation (FBF) together with Florence Lustman, President of the French Insurance Federation, and Laurent Giovachini, President of Syntec Federation, published an article in Le Monde on apprenticeships in universities and grandes écoles. The argument being that development of learning makes it possible to effectively fight against social and territorial inequalities. Read more (FR)
Finance Denmark: Corona effect: Danes' billion-dollar investments derive 9 percent. Less CO2 in 6 months
On Tuesday 7 September, Finance Denmark together with the government and the Climate Investment Coalition held the annual Climate Investment Summit conference. On that occasion, they took stock of the ambitious goal that the industry set at last year's conference. Status shows that the goal of making Danes' investments greener and less CO2-emitting is being met, even at a faster pace than expected. This is partly due to a corona effect. Read more (DK)
UK Finance: £32 million of fraud stopped by finance industry and police in the first half of 2021
Branch staff at banks, building societies, and Post Offices worked with the police to stop £32 million of fraud through the Banking Protocol's rapid scam response in the first half of this year, according to the latest figures from UK Finance. This is up 65 percent compared to the same period last year and brings the total amount of fraud prevented to £174 million since the scheme was introduced in 2016. Read more |
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FROM THE INSTITUTIONS
European Commission: Green Bond Framework
The European Commission has adopted an independently evaluated Green Bond framework. The Commission hopes to issue €250 billion green bonds, 30% of NextGenerationEU's total issuance. The first green bond issuance is due in the month of October. Besides, the Commission also confirmed its intention to issue a total of around €80 billion of long-term bonds this year, to be topped up by tens of billions of euros of short-term EU-Bills (securities with a shorter maturity – below one year). EU-Bills will be offered exclusively via auctions, with its auctioning program due to start on 15 September. Read more
ECB: ECB-EBA letter on EU implementation of Basel III reforms
Jose Manuel Campa, Chairperson of the European Banking Authority (EBA), Luis de Guindos, Vice President of the European Central Bank (ECB), and Andrea Enria, Chair of the Supervisory Board of the ECB addressed Commissioner McGuinness about the implementation of the outstanding Basel III reforms. "It is crucial to avoid implementation approaches that would be inconsistent with international agreements and would leave shortcomings in the existing framework relating to specific risks unaddressed. This includes, but is not limited to, the implementation of the output floor", they wrote. Read more
The EU Commission adopts improved disclosure rules for retail investment products
The European Commission has adopted new and improved rules in retail investment. The adopted Delegated Regulation sets out what should be included in the “PRIIPs KID” - the Packaged Retail Investment and Insurance Product (PRIIPs) Regulation Key Information Document). The PRIIPs KID is a document private investors receive when they purchase certain investment products which explains the key elements of each investment product, especially the costs, risks, and potential returns. Read more |
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FROM THE EBF
ESMA consultation on amendments to MAR Guidelines on delayed disclosure of inside information: EBF response
The EBF has responded to the consultation of the European Securities and Markets Authority (ESMA) on its Guidelines on delayed disclosure of inside information under the Market Abuse Regulation (MAR) in relation to its interaction with prudential supervision. In its response, the EBF addresses the disclosure of decisions regarding redemptions, reductions and repurchases of own funds instruments as well as the disclosure of draft SREP decisions. Besides, the disclosure of Pillar 2 Requirement (P2R) and of Pillar 2 Guidance (P2G) are also part of the response. Read more 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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