EBF WEEKLY + FINANCIAL REGULATION AGENDA
for the week starting Monday 28 June 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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AIDA and ECON hearing to discuss the overall impact of AI on financial services

On Thursday 1 July, the Members of the AIDA Special Committee and the ECON Committee will hold a joint hearing on AI and Financial Services. Representatives from the European Commission, the European Central Bank, the European Supervisory Authorities, and from the private sector and civil society will discuss the potential and limits of the use of AI in financial services, and how to mitigate potential negative side-effects. The two panels are part of the EU's efforts towards the modernization of the economy and its development into a global digital player. The discussion will address the overall impact of AI on financial services and the potential role of AI in accelerating the digital transformation of the banking industry. Read more

FINANCIAL REGULATION AGENDA for next week

Monday 28 June

• European Parliament Committee on Economic and Monetary Affairs meeting

• Publication of European Court of Auditors report on EU efforts to fight money laundering in the banking sector

• CEPOL and ECTEG ‘Darkweb and Cryptocurrencies — Basics’ course

• QED ‘Reporting, disclosure and taxonomy’ event

• Council Horizontal Working Party on Cyber Issues meeting

• Belgian Finance Center ‘Sortie de crise: Quelles priorités pour la relance?’ event

• UNEP ‘EU Taxonomy Usability: what’s it mean for investors?’ briefing

Tuesday 29 June

• Deutsche Bundesbank, the Center for Liberal Modernity and the Potsdam Institute for Climate Impact Research events on
  designing climate policies

• Bruegel ‘EU debt vs national debts: friends or foes?’ event

• POLITICO’S Competitive Europe Summit

• European Policy Centre ‘Digital Markets Act: Addressing obstacles to growth & innovation for a strong EU recovery’ event

• European Training Foundation and Eurofound meeting on
  framing the future through effective social dialogue and skills development

• CFA Institute Financial Regulatory Symposium

• European Parliament Subcommittee on Tax Matters meeting

• Nordic EU Finance Forum. EBF CEO Wim Mijs speaking

• EURACTIV 'EIPA in conversation with: How to successfully influence EU negotiations?' event 

• Euro Commerce 'Policy talks: Finance and regulation - driving green recovery and investment’ event

• EBF CyberSecurity Working Group virtual meeting

• EBF Market Structure Subgroup virtual meeting

• EBF Financial Sanctions Expert Group virtual meeting

Wednesday 30 June

• The Network Forum 'Virtual Annual Meeting'

• European Commission 'College of Commissioners' meeting

• Afore ‘EU TAXONOMY’ workshop series

• EPFSF 'Central Bank Digital Currencies (CBDC)' webinar

• EBF Secondary Markets Working Group virtual meeting

• EBF AI Expert Group virtual meeting

Thursday 1 July

• European Parliament joint meeting of the Special Committee on Artificial Intelligence in a Digital Age, and the Committee on Economic and Monetary Affairs 

• CEPS ‘Basel III Finalisation: The impact on EU banks and the Real Economy across scenarios’ webinar

• Nordic Banking Associations ‘Climate risks and financial stability — Sustainable Finance Talks’ webinar

• European Internet Forum ‘Building back Greener and more Digital’ event

• Chatham House ‘The future of fiscal policy in Europe’ event

• Afore ‘EU Taxonomy’ workshop series

• Euro Commerce 'Policy talks: Finding the right balance -Creating a level playing field for retail and ensuring products offered online are safe' event

Friday 2 July

• Deadline for submissions on
  European Banking Authority consultation on draft RTS on emerging markets and advanced economies

• EBF Banking Union Steering Group virtual meeting

For a full-year overview of key financial regulation events: click here

EBF BLUEPRINT
 

EBF presents recommendations for a fairer
and more efficient EU tax framework

The improvement of the current EU Tax system will lead to increased legal certainty and the harmonized application of VAT rules across the EU. The EBF Tax blueprint sets out recommendations for a VAT system that is suited to the demands of the EU single market. Read more

FROM THE MEDIA

FT: A blueprint for central bank digital currencies

In an interview with the Financial Times, European Central Bank executive Fabio Panetta said that a digital euro would protect consumer privacy. Central bank digital currencies (CBDCs), however, raise questions on how to protect data from the state. If CBDCs became the dominant money then central banks could have vast data repositories of nearly every transaction in an economy. The BIS blueprint is a good start for central banks considering digital currencies, but more radical steps such as handing more personal data to the central banks need more widespread consultation and support. Read more

Reuters: EU leaders to commit to finishing banking union...one day

European leaders promise to complete the EU's banking union in the future but will leave it to their finance ministers to work out when. "We reiterate our full commitment to the completion of the Banking Union and invite (EU finance ministers) to agree, without delay and on a consensual basis, on a stepwise and time-bound work plan on all outstanding elements needed to complete the Banking Union," the draft said. However, no progress is likely before German parliamentary elections in late September, Reuters reports. Read more

Finextra: Deutsche Bank signs multi-year database deal with Oracle

Deutsche Bank has entered into a multi-year collaboration with Oracle to overhaul its myriad databases with the aim of providing a dedicated platform to support the bank's trading, payments processing, risk and capital planning, and regulatory reporting. The two companies have also agreed to form a joint innovation partnership to explore potential uses for data security technologies, blockchain, AI and analytics to design new financial products and services, Finextra reports. Read more

FROM EBF MEMBERS

Finance Denmark: Association working group

In 2021, a working group, spearheaded by Finance Denmark and consisting of different representatives from Denmark's association life, worked on a catalog of ideas that can ease burdens for associations and banks without weakening the fight against money laundering. The catalog includes recommendations to the politicians. Read more (DK)

AEB: Challenges ahead: old problems in new ways

José María Roldán Alegre, President of the Spanish Banking Association (AEB) explores why it is important to reflect deeply on the architecture of regulation emerging from the Global Financial Crisis (GFC). "Regulation and supervision must guarantee a greater competitive balance between banks and players in the shadow financial system. It is not a question of equity, which could also be, but of safeguarding the stability of the financial system", he concluded. Read more (ES)

Finance Norway: The business community is affected by banking requirements in violation of EU regulations

Finance Norway, NHO, and the Norwegian Shipowners' Association have written a joint letter to the Ministry of Finance to highlight how Norwegian business and industry are affected by banking requirements in violation of EU regulations. "Banks need a predictable and stable framework, practiced consistently with the set of rules applicable to other banks in the EEA area's internal market, including the rules for risk measurement", Erik Johansen, Director of Banking and Capital Markets at Finance Norway said. Read more (NO)

FROM THE INSTITUTIONS

EBA:  Consultation to amend technical standards on credit risk adjustments

The European Banking Authority (EBA) launched a public consultation on amendments to its Regulatory Technical Standards (RTS) on credit risk adjustments in the context of the calculation of the Risk Weight (RW) of defaulted exposures under the Standardised Approach (SA). The proposed amendments follow up on the European Commission’s Action Plan to tackle non-performing loans in the aftermath of the pandemic. The update is necessary to ensure the prudential framework does not create disincentives to the sale of non-performing assets. It runs until 24 September 2021. Read more

The European Commission, ECB Banking Supervision, EBA, and ESMA encourage market participants to cease all LIBOR settings

The European Commission, the European Central Bank in its banking supervisory capacity (ECB Banking Supervision), the European Banking Authority (EBA), and the European Securities and Markets Authority (ESMA) issued a joint statement in which they strongly encourage market participants to use the time remaining until the cessation or loss of representativeness of USD LIBOR, GBP LIBOR, JPY LIBOR, CHF LIBOR, and EUR LIBOR to substantially reduce their exposures to these rates. Read more

ECB: Economic Bulletin

The latest data signal a bounce-back in services activity and ongoing dynamism in manufacturing production. Economic activity is expected to accelerate in the second half of this year as containment measures are lifted. However, uncertainties remain. Preserving favorable financing conditions remains essential to reduce uncertainty and bolster confidence, thereby underpinning economic activity and safeguarding medium-term price stability. Read more

FROM THE EBF this week 

European bank practices in supporting and implementing the UN Sustainable Development Goals: EBF Press Release

The European Banking Federation (EBF) together with KPMG Spain published a report which outlines European bank practices in supporting and implementing the UN Sustainable Development Goals (SDGs). The study provides an overview of best practices and main challenges for the banking industry in implementing the 17 global goals more than five years after their adoption. Read more

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

European Banking Federation