EBF MORNING BRIEF Wednesday 20 December 2023 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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THE EBF MORNING BRIEF TAKES A WINTER BREAK!
We will be back in January!
On behalf of the European Banking Federation,
we wish you a Merry Christmas and a Happy New Year!
Thank you for your engagement, expertise, and collaboration.
We look forward to continuing working together in 2024!
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FROM THE MEDIA
FT: Eurozone banks must prepare for ‘more volatile’ funding sources
Eurozone banks must prepare for the risk of funding sources becoming “more volatile”, said the region’s top banking supervisor as it warned lenders against complacency amid mounting geopolitical and economic risks. As reported by the Financial Times (FT), lenders weathered the high interest rates, market turmoil, and economic strains of 2023 well and closed the year with solid capital and liquidity positions, but challenges remain. Read more
Reuters: ECB raises capital demands for 20 banks over bad loans
The European Central Bank (ECB) said it had raised capital requirements for 20 banks after judging they had not set aside enough cash to cover loans that had gone unpaid, a key concern for supervisors after borrowing costs rose sharply. The ECB also imposed capital charges on eight banks over their exposure to leveraged finance, Reuters adds. Read more
Bloomberg: European banks plan €70 billion in investor payouts
“Banks have been particularly profitable, they’re planning distributions which are in line with previous years,” Andrea Enria, who leads the European Central Bank (ECB)‘s oversight arm, said in an interview with Bloomberg. While lenders’ capital buffers meant they were resilient to various shocks, the industry has to keep an eye on risks including fallout from higher borrowing costs, Enria added. Read more |
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MAIN EVENTS
Wednesday 20 December
Thursday 21 December
Friday 22 December
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Launch of the C-ESG Risk Roundtable
Collateral Workstream
Thursday, 11 January 2024
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Banks do recognize that environmental factors could be a source of financial risk.
While banks are making tangible progress, they are facing numerous operational and implementation challenges, many of which are neither originated, nor inherent to the banking industry. While some will need to be addressed at the level of individual organizations, others will benefit from collaborative approaches.
To further strengthen the dialogue within the banking sector and to facilitate the discussion with the European Central Bank (ECB), a high-level Environmental, Social, and Governance Risk Roundtable (C-ESG Risk RT) was set up by the European Banking Federation (EBF)
with the participation of 13 European banks. On 11 January 2024, we will be launching the second report resulting from the discussions and deliberations of the C-ESG Roundtable Collateral Workstream. |
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FROM EBF MEMBERS
Febelfin: The banking sector continues to invest in financial education
Previous research by Febelfin highlighted the lack of financial knowledge among youngsters aged 16 to 30, but there is room for improvement among the rest of the population. The banking sector continues to develop new educational materials to explain the financial world clearly and transparently. Read more
SBA: Access to the EU market is essential for the banking sector
“We are extremely satisfied that the Federal Council plans to relaunch the regulatory dialogue on financial services between Switzerland and the EU,” says Roman Studer, the new CEO of the Swiss Bankers Association (SBA). Read more (FR) AEB: Interoperability agreement among major EU payment solutions BIZUM (Spain), BANCOMAT (Italy), and SIBS (Portugal), leading companies in mobile payment services in their respective markets, signed a Letter of Intent to implement interoperability. As reported by the Spanish Banking Association (AEB), this agreement aims to allow its users to make fast, convenient, and secure instant payments using their mobile phones in the three countries. Read more (ES) |
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FROM THE INSTITUTIONS
ECB: Capital requirements in 2024 remain steady
The European Central Bank (ECB) published the results of its Supervisory Review and Evaluation Process (SREP) for 2023 and its supervisory priorities for the years 2024-26. The ECB has slightly refocused its supervisory priorities for the next three years. Read more
ESMA: Methodology for climate risk stress testing and analysis of the financial impact of greenwashing controversies
The European Securities and Markets Authority (ESMA) published two articles, one outlining an approach to modelling the impact of asset price shocks from adverse scenarios involving climate-related risks, the other exploring the use of ESG controversies for the purpose of monitoring greenwashing risk. Read more
BIS: Monetary tightening, inflation drivers and financial stress
Since mid-2021, central banks have swiftly raised policy rates against the backdrop of a flare-up in inflation. This study by the Bank for International Settlements (BIS) analyzes whether the tightening of monetary policy affects financial stress differently depending on the underlying supply versus demand nature of inflation. Read more |
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FROM THE EBF
EBF: Position on the European Commission’s FIDA
The EBF recognizes efforts by the European Commission to develop a strong European data economy through initiatives such as the Data Act and Data Governance Act. Under this horizontal framework is the proposed sectoral Regulation on Financial Data Access (FIDA). The proposal aims at promoting data-driven innovation in the financial sector, possibly opening new opportunities for customers while also increasing their control of how and with whom they share data, including through tools such as permission dashboards. Read more EBF: Data Protection Officers Forum reaches its fourth Edition The European Banking Federation (EBF) held the fourth edition of the Data Protection Officers Forum (DPO Forum) on Nov 30, 2023, in Brussels. The event brought together over 45 DPOs from 18 countries across Europe, along with representatives from Data Protection Authorities (DPAs), the European Commission, and other institutions. 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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This newsletter is published by the EBF Mediacentre.
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