| EBF WEEKLY BRIEF Friday 17 April 2020
These are the top stories in European banking, financial regulation and EU policy from this week, brought to you by the European Banking Federation.
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Q1 earnings kicks off with Handelsbanken, CS and Swedbank |
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European banks, most of whom have already announced uncertain profit outlooks for 2020, will begin reporting how the fallout from the Corona crisis is affecting business and balance sheets when they start releasing first-quarter earnings in the coming weeks. Sweden's third-biggest bank Handelsbanken will report on Wednesday, while Switzerland's second largest lender Credit Suisse and Swedbank follow on Thursday. Deutsche Bank, Europe's biggest, will follow on 29 April. |
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Thursday will see virtual EU summit on recovery strategy |
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Next Thursday EU leaders will meet by video conference to focus on the EU's recovery strategy and on the EU budget for the coming years. Leaders will continue to work on limiting the spread of the virus, promoting research, tackling economic consequences and helping citizens in third countries. EU leaders will also take forward and provide clear guidance on the Eurogroup's latest proposal of a European recovery fundA, which includes a €540 billion package to tackle the economic consequences of the Covid-19 crisis. Read more |
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EBF MEMBERS IN THE NEWS this week
The Netherlands: Banks are supporting over 100000 entrepreneurs
Since the corona crisis outbreak in March, the Dutch banks have, in addition to the support package by the government, offered temporary financial relief to over 105000 entrepreneurs and over 17000 consumers. A total of 5.4 billion euros has been made available in the Netherlands through the postponement of repayments and the provision of additional credit to companies. Read more
UK: Covid-19 lending scheme provides over £1.1 billion to SMEs The banking and finance sector has lent over £1.1 billion to SMEs so far through the Coronavirus Business Interruption Loan Scheme (CBILS), UK Finance has revealed. Read more
Bulgaria: Deferral and settlement of liabilities payable to the banks
The Executive Board of the Association of Banks in Bulgaria (ABB) welcomes the decision of the Governing Council of the Bulgarian National Bank, announced on April the 10, to approve the 'Procedure for Deferral and Settlement of Liabilities Payable to Banks and their Subsidiaries' applied in the light of the Covid-19 crisis. Read more Ireland: Safeguarding Your Money Banking & Payments Federation Ireland has published a special information guide providing practical advice for cocooning customers on the various ways in which they can manage their day-to-day banking and finances in a safe way while they stay at home. Read more
Liechtenstein: Banks are well positioned for expected recession
At today's media conference, the Liechtenstein Financial Market Authority (FMA) gave the banking sector a good report card. It specifically emphasized that the banking sector is well prepared for the expected recession this year. Read more (DE)
France: Bankers are on the front lines too
Much has been said about the second front line of this health crisis, and banks and all their employees are part of it, said Jean-Yves Dupuy, Chairman of the French Banking Federation of New Aquitaine and General Delegate for the Greater South-West of Société Générale. Read more (FR)
Germany: Fraudsters want to cheat you out of your money by phone
Especially in times of severe crises and uncertainties, criminals smell good business. At present, there are more and more calls from fraudsters who think up different tricks to get your money. Read more (DE)
Finland: Finnish banks offer extra flexibility to clients
To help businesses and households struggling in the coronavirus crisis, Finnish banks offer extra flexibility for loan repayments. As many as 63,000 private customers and 12,000 companies have already sent banks applications for extra grace periods. Read more |
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Banking in a Digital World: Drivers and Trends
BANKING ESSENTIALS WEBINAR
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FROM THE MEDIA today Quartz: European banks are more imperiled than US counterparts The cost of insuring against a default by US banks like JPMorgan and Bank of America is almost back to where it was at the end of February, according to credit-default swap prices compiled by IHS Markit, reported by Quartz. Credit swaps, a type of default insurance, allow derivatives traders to hedge or speculate on creditworthiness. Swaps linked to European banks like Italy’s Unicredit and Germany’s Deutsche Bank remain much more elevated. Read more Bloomberg: ECB will do ‘everything necessary’ to help economy The European Central Bank will do its bit to help the region’s economy cope with its worst crisis in decades, but more international cooperation is needed to overcome the pandemic, according to President Christine Lagarde. Read more RTE Reuters
Euractiv: Priorites under the EU Green Deal
The European Commission is reviewing its 2020 work programme in light of the Covid-19 crisis. Although climate policies remain broadly on track, other projects under the European Green Deal are being delayed because they considered less essential, reports Euractiv. Read more
BBC: UK will refuse any transition extension request The UK will refuse to extend the Brexit transition period, even if the EU requested a delay, report various media. A spokesman said any extension would keep the UK bound by EU rules when it instead "needs flexibility" to deal with coronavirus. The transition period, due to end on 31 December, was intended to allow the two sides to negotiate a trade deal. Read more Financial News Bloomberg The Guardian
Crowdfund Insider: Here is the EU’s consultation on digital finance This month, the European Commission kicked off a consultation on the future of digital finance and Fintech. CrowdfundInsider highlights the key points and also reports a series of roundtables organised by DG FISMA on digital finance topics. Read more CrowdfundInsider II
Law360: EU gives final green light to sustainable finance rules The Council of the European Union has adopted new rules that will set out a bloc-wide classification system for environmentally-friendly investments under Europe’s plan to become carbon neutral by 2050, says Law360. Read more (€)
Euromoney: Spanish banks find a practical way to work with the state Despite worries of political impact on banks, the Spanish banking sector is leading the economic support packages together with the government, says Euromoney. Spanish banks have effectively matched the government’s €100 billion package, bringing total liquidity assistance for Spanish businesses to about €200 billion. Read more |
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FROM THE INSTITUTIONS this week
Ecofin: Economic impact of the Covid-19 crisis and policy response
Ministers discussed the economic impact of the Covid-19 crisis and the policy response, endorsed a statement on bank lending for households and agreed on a pragmatic approach towards the 2020 European Semester exercise. Read more
Council: EU Presidents' press release after G7 Leaders videoconference
On Thursday, the President of the European Council Charles Michel and the President of the European Commission, Ursula von der Leyen participated in a G7 Leaders’ videoconference called by the United States that currently holds the G7 Presidency. Read more
Parliament: MEPs call for stronger EU response to overcome Covid-19
In a debate with Ursula von der Leyen and Charles Michel, MEPs called for more coordinated European action to protect citizens and support the economy. MEPs acknowledged that the EU could have acted even earlier and more swiftly, but stressed that solidarity within the EU has been restored. Read more
ECB: Statement by ECB's Lagarde at the IMFC meeting
The Covid-19 pandemic is a truly global challenge. Countries all around the world are having to deal with its severe human and economic consequences said Christine Lagarde, President of the ECB at the forty-first meeting of the International Monetary and Financial Committee. Read more
Council adopts a unified EU classification system: Sustainable finance
The Council has adopted a regulation setting out an EU-wide classification system (taxonomy), which will provide businesses and investors with a common language to identify those economic activities which are considered environmentally sustainable. Read more OECD: Tax & Fiscal Policy in Response to the Coronavirus Crisis report The OECD presented a Tax and Fiscal Policy in Response to the Coronavirus Crisis report. Maintaining business cash-flow has been a core goal of the fiscal policy measures, which include extending deadlines for tax filing, deferral of tax payments, faster tax refunds, more generous loss offset provisions, and some tax exemptions. Read more BIS: Covid-19: Addressing financial institutions' operational challenges Financial authorities have issued guidance to help institutions address operational challenges related to the Covid-19 crisis because how they cope affects the provision of key financial services that support the economy. Read more
IMF publishes World Economic Outlook
The IMF has published the World Economic Outlook. It finds that Covid-19 will severely impact growth across all regions during this year before a rise of real GDP by 5.8% in 2021. Read more
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EBF IN THE NEWS this week
EBF supports 12-month delay on implementation of SRD II
Due to the Covid-19 outbreak and its severe impacts on banks, market participants and infrastructures, on 9 April the EBF and 10 other trade associations and expert groups wrote to the European Commission to ask them to consider a delay in the implementation date of the Shareholder Rights Directive II and of the IR by twelve months, to 3 September 2021, or other equivalent measures providing for a synchronous postponement across EEA and EU Member States. Read more |
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The European Banking Federation and fTLD Registry Services (fTLD) are partnering to educate the European banking sector about the cybersecurity role .BANK plays in protecting banks against Business Email Compromise (BEC) scams, phishing and spoofing attacks that lead to breaches, identity theft and financial fraud. fTLD administers the .BANK domain and the EBF has served on its Advisory Council since 2013. To learn more about the security benefits of .BANK, visit https://www.register.bank/ebf/ or contact fTLD at [email protected]. |
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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. 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. |
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