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13 June 2019

This week in "Brussels"



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  Articles from 06 June 2019 - 13 June 2019

  Banking Union
 
 
European Commission: Fourth progress report on the reduction of non-performing loans (NPLs) and further risk reduction in the Banking Union
The European Commission confirms that NPL levels are continuing their downward trajectory towards pre-crisis levels. The ratio of NPLs in EU banks has come down by more than half since 2014, declining to 3.3% in the third quarter of 2018 and down by 1.2 percentage points year-on-year.  View Article
ECB announces details of new targeted longer-term refinancing operations (TLTRO III)
The Governing Council of the ECB decided on key parameters of the new series of targeted longer-term refinancing operations (TLTRO III), including the interest rates that will be charged. The quarterly operations will help preserve favourable bank lending conditions and support the accommodative stance of monetary policy.   View Article
Financial Times: Banks warn EU rules will scupper a quarter of online payments
Europe’s big banks have warned that more than a quarter of online payments will be impossible to complete from September because of a lack of preparedness for new EU anti-fraud rules and have “urgently” requested more time to adapt.  View Article
EPC: White paper: Non-NFC based Mobile SEPA card proximity payments
The document aims to create awareness amongst the payments industry about the development of non-NFC based MCPP solutions and to provide a common understanding of the MCPP landscape. This final version also reflects the outcome of a 3-month public consultation that ended in February 2019.  View Article
ECB: Working paper: The procyclicality of banking: evidence from the euro area
In this paper, authors examine the procyclicality of loan loss provision for banks internationally. A main finding is that provisioning procyclicality— the impact of GDP growth on provisioning— in the euro area is about twice as big as in other countries.  View Article
Prudential Regulation Authority Annual Report 2019
The Bank of England and the Prudential Regulation Authority (PRA) publish separate annual reports. The PRA report includes information on PRA’s activities for the year ended 28 February 2019.  View Article
 
  Capital Markets Union
 
 
EBF: Markets4Europe to push for reforms of EU financial markets for the benefit of companies and investors
A group of former political leaders and senior officials are joining forces with active chief executives from leading European companies in a campaign to push for the radical and urgent reforms required to meet the capital markets needs of companies and investors in the European Union.  View Article
ESMA's Ross keynote address at the Global ABS Conference 2019
Executive Director Verena Ross provided ESMA’s perspective on some key aspects of the Securitisation Regulation.  View Article
ISDA's O’Malia: Benchmarks and accounting
Scott O’Malia said that the continuation of hedge accounting relationships, critical for the balance sheet stability of corporates across the globe, is at risk.  View Article
ESMA to address regulatory concerns over Frequent Batch Auctions
ESMA identified four main characteristics of FBA trading systems through its call for evidence and intends to issue supervisory guidance on pre-trade transparency and on the price determination process of FBAs.  View Article
 
  Clients Union
 
 
EU stimulates digital innovation by increasing the availability of publicly funded data
The Council adopted new rules on open data and the reuse of public-sector data. This aims to boost the EU data economy, contribute to the development of a data-based society and stimulate growth and the creation of jobs in all sectors of the economy.  View Article
Insurance Europe: Insight briefing: Insurers ask if GDPR has delivered on its aims
Insurance Europe has published an insight briefing that examines whether the General Data Protection Regulation (GDPR) has delivered on its aims of enhanced protection and greater harmonisation of data protection rules. It also asks if the GDPR is compatible with insurers’ need to innovate for the benefit consumers.   View Article
 
  Corporate Governance/Accounting
 
 
EFAMA: Towards capital markets' long-termism: revised shareholder rights directive
June 10th marks the application date of the revised Shareholder Rights Directive (SRD II). The new rules were proposed to promote long term shareholder engagement and address shortcomings in corporate governance of listed companies which were exposed by the financial crisis.  View Article
ACCA responds to Brydon’s Independent Review into the quality and effectiveness of audit
Proposals to deal with the perceived audit expectation gap need to be framed around increasing audit quality for the benefit of capital markets and economies, says ACCA in its official response to the Sir Donald Brydon’s independent review.  View Article
 
  Financial Services Policy
 
 
OECD presents revised Codes on capital flows to G20
Cross-border capital flows are an integral component of international finance, but require a balanced framework for removing unnecessary barriers to the movement of capital while providing governments flexibility to cope with instances of economic or financial instability, OECD Secretary-General Angel Gurria said.  View Article
Ignazio Visco: Challenges for the financial sector in adapting to cyber threats
The Governor of the Bank of Italy spoke at the G7 Conference on "Cybersecurity: coordinating efforts to protect the financial sector in the global economy".  View Article
 
  Political
 
 
POLITICO: Macron ‘would support’ Merkel for Commission president
French President Emmanuel Macron on Tuesday told Swiss TV station RTS that he would back German Chancellor Angela Merkel for European Commission president.  View Article
POLITICO: EU conservatives see path to power, pressurizing Macron and Liberals
Center-right politicians said that the French president’s group can join a coalition and claim a top job, or face isolation.  View Article
Open Europe: The Social Democrats have won Denmark’s general election – now for the hard part
Following the victory of the Social Democrats in Denmark’s general election, Open Europe’s Marcus Cadier argues that the centre-left party will have to position themselves carefully in the coming years if they are to keep their voting coalition intact.  View Article
 
  Economic
 
 
European Commission: Deepening Europe's Economic and Monetary Union: Taking stock four years after the Five Presidents' Report
Almost exactly four years after the publication of the Five Presidents’ Report, this Communication is taking stock of the progress towards a deeper and fairer Economic and Monetary Union, in light of the overall economic context.  View Article
Bloomberg: Europe fears manufacturing meltdown will infect rest of economy
European industry is in trouble and there’s a risk it will infect other parts of the economy, deepening the slowdown that’s already left the region fragile.  View Article
ECB: Eurosystem staff macroeconomic projections for the euro area
Although real GDP growth was stronger than expected in the first quarter of 2019, recent indicators point to weaker growth in the second quarter and a moderate increase during the remainder of 2019. Economic sentiment indicators have continued to worsen across euro area countries over recent months, notably in sectors exposed to global trade.   View Article
ECB's De Guindos: The euro area economy and our monetary policy stance
The Vice-President of the ECB analysed recent economic developments and said that global headwinds continue to weigh on the euro area outlook.  View Article
G20 Ministerial Statement on Trade and Digital Economy
The G20 Trade Ministers and Digital Economy Ministers, met on 8 and 9 June 2019 in Japan to discuss the need to do more to achieve their common objectives for global growth.   View Article
Post-2020 digital policy − Council adopts conclusions
The Council adopted conclusions on the future of a highly digitised Europe beyond 2020: 'Boosting digital and economic competitiveness across the Union and digital cohesion'.  View Article
Financial Times: Jens Weidmann casts a shadow over the ECB
If he simply validated the orthodox German view as president, it would be a disaster, warns Martin Wolf.  View Article
Giving entrepreneurs a second chance: new rules on business insolvency adopted
The Council formally adopted the directive on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency and discharge procedures. This decision marks the end of the legislative procedure.  View Article
Olivier Blanchard: Europe must fix its fiscal rules
The former IMF chief economist argues that eurozone policymakers should create a common budget, or at least overhaul the fiscal rules that have tied member-state governments' hands for no good reason, in order to face an environment of persistently low interest rates and below-potential output.  View Article
 

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