(This e-mail provides the headers of a selection of the articles published this week. If you would like to upgrade to our Gold service and access all articles - with live links to the underlying news - please click on the button)
Articles from 25-31 March 2022
General Financial Policy
CER: Russia may ditch the dollar – but it needs the euro : Naysayers claim Western financial sanctions will speed Russia and China’s drift away from Western currencies and finance. But the West’s predominance in the global financial system is enduring.
Future of Europe: first debate on Conference proposals wraps up : The Conference on the Future of Europe is in its final phase, following last weekend’s exchanges on preliminary draft proposals on all themes.
Banking Union
SRB Chair, Elke König speech at the SRB Annual Press Breakfast : As our experience has shown, we see that the better a bank is prepared for resolution, the more MREL it has built up and so on, the less likely it is they will go into resolution.
SSM/Bank of England: Financial leverage and banks’ risk controls : Opinion piece by Andrea Enria, Chair of the Supervisory Board of the ECB, and Sam Woods, Deputy Governor for Prudential Regulation and Chief Executive Officer of the Prudential Regulation Authority, published on Bloomberg on 30 March 2022
Finance Watch: Basel III finalisation comes undone: A proposal that lets down citizens and backtracks on global agreements : Finance Watch regrets that the so-called “draft Banking Package 2021” (finalising the implementation of the Basel III prudential framework for banks in Europe) leaves European banks insufficiently capitalised, and taxpayers exposed.
Capital Markets Union
ESMA updates on third-country CCP recognition decisions - in 12 jurisdictions : On 22 March 2022, ESMA completed the tiering and review of the recognition decisions of 25 TC-CCPs recognised by ESMA prior to September 2020, under Article 89(3c) of EMIR and in accordance with Article 25 of EMIR.
EBF Position on EC Consultation on options to enhance the suitability and appropriateness assessments : The proposals could hinder innovation and competitiveness and have the potential to ultimately lead to dangerous concentration of risks.
InsuranceEurope:EC must totally rethink its unworkable suitability and appropriateness proposals.. : which would create significant problems for insurance customers. The proposals would be completely unworkable for insurers .
Better Finance: ESMA study confirms that actively managed funds underperform benchmarks, also in times of market stress : As stated by ESMA “the COVID-19 crisis offers the opportunity to test the hypothesis [often claimed by the industry] that active equity UCITS outperform their benchmarks during stressed market conditions”.
Environmental, Social, Governance (ESG)
ESMA publishes its Final Report on the EU Carbon Market : The Report’s analysis did not find any current major deficiencies in the functioning ofthe EU carbon market based on the data available. However, ESMA’s analysis of the markethas led it to put forward a number of policy recommendations to improve market transparencyand monitoring.
The Platform: Environmental Taxonomy: Final Report on Taxonomy extension options supporting a sustainable transition : The Taxonomy focuses on the performance levels of activities that are making a substantial contribution (SC) to the EU’s environmental objectives while doing no significant harm (DNSH) to any of those objectives and meeting minimum social safeguards.
IFRS Foundation and GRI to align capital market and multi-stakeholder standards : Agreement to create an interconnected approach for sustainability disclosures
ESAs issue updated supervisory statement on the application of the Sustainable Finance Disclosure Regulation : The supervisory statement aims to promote an effective and consistent application and national supervision of the SFDR, thus creating a level playing field and protecting investors.
Fin Tech Regulation
ECB's Panetta: A digital euro that serves the needs of the public: striking the right balance : Introductory statement by Fabio Panetta, Member of the Executive Board of the ECB, at the Committee on Economic and Monetary Affairs of the European Parliament
Digital Payment Methods : This study seeks to provide the European Central Bank (ECB) with a thorough understanding of the current payment habits of citizens of euro area countries and specifically their attitudes towardsdigital payment methods.
Digital Markets Act: Commission welcomes political agreement on rules to ensure fair and open digital markets : The regulation, agreed in slightly more than a year after it was proposed, is among the first initiatives of its kind to comprehensively regulate the gatekeeper power of the largest digital companies.
Brexit and the City
Bloomberg: More Bankers Stayed in Brexit London Than Expected, EY Says : Job relocations drop to 7,000, a fraction of some estimates; Public announcements of plans to shift capital have dried up
Brexit
FT: Sunak admits UK’s dismal recent trade ‘might’ be linked to Brexit : Chancellor tells MPs it was ‘always inevitable’ if you change nature of EU ties there would be an impact
OBR: The latest evidence on the impact of Brexit on UK trade : In the year following the end of the transition period, overall UK trade volumes fell, although with some surprising compositional effects.
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