EBF WEEKLY + FINANCIAL REGULATION AGENDA
for the week starting Monday 24 May 2021 An overview of the main financial regulation and banking stories this week and a look ahead to key events for the upcoming week, brought to you by the European Banking Federation
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EBF offices will be closed on Monday 24 May
The EBF Morning Brief will resume on Tuesday 25 May |
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Joint EC/ECB Conference on European Financial Integration & Stability |
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The annual joint conference on European Financial Integration and Stability of the European Commission (EC) and the European Central Bank (ECB) will take place online on Thursday 27 May 2021. Mairead McGuinness, European Commissioner for Financial Services, Financial Stability and Capital Markets Union and Luis de Guindos, Vice-President of the European Central Bank will host the event. This year’s conference will be dedicated to the discussion of two subjects: 1) Implications of COVID-19 for the EU financial system over the medium term and possible policy implications; 2) Climate change and the EU financial system. As in previous years, the European Commission will also take the opportunity to publish its annual edition of the European Financial Integration and Stability Report (EFSIR). The conference will be web streamed live, with the possibility for viewers to ask questions using Twitter. Register here |
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FINANCIAL REGULATION AGENDA for next week
Monday 24 May:
Whit Monday - EBF offices close Tuesday 25 May: European Parliament Subcommittee on Tax Matters meeting EBF Sustainable Finance Working Group virtual meetig EBF Cybersecurity Working Group virtual meeting Wednesday 26 May: EBF Banking Supervision Committee virtual meeting Thursday 27 May: EBF Executive Committee virtual meeting Friday 28 May: European Banking Authority hearing on ALMM reporting University of Limerick 'Digital transformation in financial services' webinar. EBF Director of Innovation & Cybersecurity Alexandra Maniati speaking EBF Board virtual meeting For a full-year overview of key financial regulation events: click here |
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EBF BLUEPRINT
EBF presents recommendations for a fairer and
more efficient EU tax framework The European Banking Federation on Thursday presented its blueprint with recommendations for a fairer and more efficient EU tax framework.
The report identifies four priorities that need to be addressed: COMPLY with well calibrated tax reporting; SIMPLIFY withholding tax procedures; NEUTRALISE VAT distortions and other undue tax disincentives; RING-FENCE banking activities from other highly digitalized businesses when designing new corporate tax rules.
Based on these four priorities, the EBF has formulated 10 concrete policy recommendations that are elaborated in the 48-page EBF blueprint ‘Recommendations for a fairer and more efficient EU tax framework’. Please find the full report HERE
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FROM THE MEDIA this week
Reuters: Italy in talks with EU to ease mergers between more than two banks - paper Italy is discussing with the European Union new rules that would ease deals between more than two banks paving the way to merging Banca Monte dei Paschi di Siena (BMPS.MI) and possibly Banco BPM (BAMI.MI) in UniCredit (CRDI.MI), daily La Stampa said on Friday. Read more
FT: ECB warns pandemic debt burden creates financial stability risks The rising debt levels of eurozone governments and companies have made it more likely that economic aftershocks from the coronavirus pandemic could trigger financial instability, the European Central Bank (ECB) has warned. “We are optimistic that financial and economic conditions will bounce back,” said Luis de Guindos, vice-president of the ECB. “There is, however, a reality that the pandemic will leave a legacy of higher debt and weaker balance sheets, which unaddressed could prompt sharp market corrections and financial stress or lead to a prolonged period of weak economic recovery”, Financial Times (FT) reports. Read more (€)
EU Observer: MEPs give roaring approval to EU green fund
The European Parliament has voted to spend €17.5 billion on making the EU economy more green by a majority of 615 against 35. The so-called Just Transition Fund still needs unanimous approval by EU states in a move expected in June. The Greens praised the fact it cannot be spent on fossil fuels or nuclear energy. But "it's just too small", German Green MEP Niklas Nienass said, EU Observer reports. Read more
Reuters: EU reassessing role of natural gas in green finance rules
The European Union’s landmark rules to classify green investments may need to accommodate natural gas, the European Commission said, as Brussels weighs a politically fraught decision on how to treat the fossil fuel. A decision is due this year, before the climate change-related section of the taxonomy takes effect in 2022, Reuters reports. Read more
Il Sole 24 Ore: Olaf Scholz: European rules have proven to be very flexible in times of crisis but the coming years will be decisive
The German Finance Minister Olaf Scholz has been interviewed by the Italian newspaper 'Il Sole 24 Ore' to discuss the Banking Union and global taxation. He stated that a truly integrated Banking Union would increase profitability, financial stability, and sovereignty of the Euro globally. Besides, he highlighted the role of global minimum taxation in stopping multinational enterprises' aggressive tax planning strategies. Read more |
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FROM EBF MEMBERS this week
CBA: Appointment of Jakub Seidler as Chief Economist
Jakub Seidler will take up the position of Chief Economist of the Czech Banking Association (CBA) on 1 June 2021. He will replace Miroslav Zámečník, who will become the CBA's chief advisor on the same date. His work will focus primarily on macroeconomic analyses and forecasts, sectoral studies, and assessing the impact of legislative measures on the Czech banking sector. Read more (CE)
NVB: Towards data-driven digital finance
Dutch banks want to actively contribute to the formulation of an Open Finance framework in 2024, as advised by the European Commission. The Dutch Banking Association (NVB) shares proposals on how Open Data and Open Finance can be created in a European context while stressing that data access and sharing of personal data between businesses can and must be structured in a standardized and transparent manner. Read more
ABI: Monthly Report - May 2021
The monthly Report on the evolution of financial and credit markets by the Italian Banking Association (ABI) provides insights on the main credit and financial market variables and economic phenomena. In April 2021, loans to households and non-financial corporations in Italy were up by +4.2% while interest rates on new loans remain at record low levels. Also, the average interest rate on total bank funding from customers is 0.47%. Read more (IT)
Febelfin: Belgians switch massively to digital payments
The Belgian Financial Sector Federation (Febelfin) and its partners are launching the annual Digital Payments Barometer in collaboration with the VUB. After a year of crisis, the figures show some striking trends, including a major breakthrough across all age groups in contactless card payment. Read more (FR)
SBA: Major crises cannot be solved by politics alone
After five years, Herbert J. Scheidt, President of the Swiss Bankers Association (SBA) is stepping down this fall. In this interview with NZZ, he discusses why associations like the SBA are needed, why the industry has become safer despite billion-dollar accidents, and why he sees his ideal successor in former UBS CEO Marcel Rohner. Read more (DE) |
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FROM THE INSTITUTIONS this week
ECB: Financial Stability Review: Financial stability in the pandemic’s third wave
Vaccinations bring the hope of a way out of the coronavirus crisis, but risks to financial stability remain elevated, and divergence is growing as some countries and sectors are hit harder than others. Well-targeted policy measures are warranted to support the economy. The European Central Bank (ECB) Financial Stability Review provides an overview of potential risks to financial stability in the euro area and aims to promote awareness in the financial industry and among the public of euro area financial stability issues Read more
SRB: Blueprint for the CMDI framework review
The Single Resolution Board (SRB) has published key considerations on the Crisis Management and Deposit Insurance (CMDI) framework review. It notes that without a fully-fledged European Deposit Insurance Scheme (EDIS), the Banking Union will remain incomplete. In addition, it highlights that SRB should act as central authority with powers to manage all bank failures, handling both EDIS and the Single Resolution Fund. Read more
EBA: Plans for the 2021 EU-wide Transparency exercise and EBA Risk Assessment Report
The European Banking Authority (EBA) announces that the annual 2021 EU-wide Transparency exercise will be carried out in autumn and the information on banks’ exposures and asset quality during the crisis will be released to market participants. The exercise will cover the figures from the second half of 2020 and the first half of 2021. The exercise is planned to be launched in September and the results are expected to be published at the beginning of December, along with the EBA Risk Assessment Report. Read more
ESAs' report on the implementation and functioning of the EU Securitisation Regulation
The Joint Committee of the European Supervisory Authorities (ESAs) published its analysis of the implementation and the functioning of the EU Securitisation Regulation (SECR), including recommendations on how to address initial inconsistencies and challenges. The report is meant to provide guidance to the European Commission in the context of its review of the functioning of the SECR. Read more
2021 Edelman Trust Barometer
After a year of unprecedented disaster and turbulence – the Covid-19 pandemic and economic crisis, the global outcry over systemic racism and political instability – the 2021 Edelman Trust Barometer reveals an epidemic of misinformation and widespread mistrust of societal institutions and leaders around the world. Adding to this is a failing trust ecosystem unable to confront the rampant infodemic, leaving the four institutions – business, government, NGOs and media – in an environment of information bankruptcy and a mandate to rebuild trust and chart a new path forward. Read more |
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FROM THE EUROPEAN BANKING FEDERATION this week
EBF Blueprint: recommendations for a fairer and more efficient EU tax framework
The European Banking Federation (EBF) on Thursday presented its blueprint with recommendations for a fairer and more efficient EU tax framework. Based on four priorities, the EBF has formulated 10 concrete policy recommendations. Read more
ESAs Joint Consultation paper on Taxonomy-related sustainability disclosures (SFDR RTS): EBF response
The European Banking Federation has responded to the ESAs Joint Consultation paper on Taxonomy-related sustainability disclosures (SFDR RTS). Click here to read the EBF full position.
DG FISMA’s Crisis management and Deposit Insurance (CMDI) framework consultation: EBF feedback
A good moment to take stock of the EU Crisis Management and Deposit Insurance (CMDI) framework. DG FISMA’s CMDI review consultation raises important questions. EBF shares thoughts on possible clarifications, improvements, and the next steps. Click ‘here’ to read our detailed feedback to DG FISMA or ‘here’ for a short summary of our main points. |
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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.
For questions or suggestions contact [email protected]
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