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16 January 2020

Standard Weekly Newsletter

EBA's Risk Dashboard, Italy emerges as biggest obstacle to eurozone banking union, ESMA's priorities for 2020-22, European Green Deal Investment Plan, Boris Johnson admits UK might not strike EU trade deal this year, EU may threaten 'to block' City's access to its markets and more.


Welcome to our Friends Standard weekly e-mail. 

We are now focussed on the big themes for the next legislative period - targeting the interaction of the driving forces of politics and economics as they force the required changes in over-arching financial regulation (including ESG and Fin Tech). Details of these services are here

The 158th Brussels 4 Breakfast was particularly rumbustious as the expert audience tried to pin down the UK's negotiation team and wish-list - in contrast to the clartiy about to be provided on the EU side. The notes are here and the video of the 49th Brussels 4 Brunch at CISI will be uploaded next week. Unusually, I recorded my opening comments explaing the process of creating a trade deal with the EU -  the podcast will also be available next week.

Interested in Continuing Professional Development (CPD)? Please click here for our CPD services

Articles from 9 January 2020 - 16 January 2020

Banking Union

EBA: EU banks’ face a further contraction of profitability : The European Banking Authority published its Risk Dashboard and the results of the Risk Assessment Questionnaire. While the capital position of EU banks remained strong and asset quality improved further, profitability contracted in Q3 2019, with a negative outlook from both banks and analysts. View Article
Bank of England: Working paper: Impact of IFRS 9 on the cost of funding of banks in Europe : IFRS 9 increases credit loss (impairment) charges and reduces after-tax profits of banks. This makes retained earnings and hence capital resources lower than what they would be under IAS 39. To maintain their capital ratios under IFRS 9, banks could elect to hold higher levels of equity capital. View Article
Financial Times: Italy emerges as biggest obstacle to eurozone banking union : The new ESM treaty is being held up because the Italian opposition, led by Matteo Salvini, is agitating against it on the grounds that it will force losses on Italians who put their savings in government bonds. View Article

Capital Markets Union

Financial Times: Traders across Europe face up to the cost of failure : Banks and asset managers will soon be grappling with a revolution in European securities markets that could push up the cost of trading by billions a year. View Article
ESMA announces key priorities for 2020-22 : The plan sets out ESMA’s future focus and objectives and reflects its expanded responsibilities and powers following the ESAs Review, and EMIR 2.2, which increases its focus on supervisory convergence, strengthens its role in building CMU and gives it with more direct supervision responsibilities. View Article
EIOPA publishes the technical specifications for the Market and credit Risk Comparative Study YE2019 : The MCRCS is an annual Europe-wide comparative study on the modelling of market and credit risk. Its main objective is to compare risk charges for a selection of asset portfolios to be used as a tool for the supervisory review of internal models.  View Article

Protecting Customers

ESMA publishes responses to its consultation on MiFID II review report on position limits : ESMA published the responses received to its consultation on MiFID II review report on position limits and position management. View Article

Environmental, Social, Governance (ESG)

European Commission: Financing the green transition - The European Green Deal Investment Plan and Just Transition Mechanism : The EU is committed to becoming the first climate-neutral bloc in the world by 2050. This requires significant investment from the EU and the national public sector, as well as the private sector. The European Green Deal's Investment Plan - the Sustainable Europe Investment Plan - will mobilise public investment and help to unlock private funds through EU financial instruments, notably InvestEU, which would lead to at least €1 trillion of investments. View Article

Friends' Standard Services

158th Brussels for Breakfast – CPD Notes : Organised by the Centre for the Study of Financial Innovation (CSFI), hosted by CISI. This blog complements the subsequent 49th Brussels 4 Brunch 30-minute CISI webinar that is also available to Friends of GrahamBishop. View Article
Christine Lagarde - ipropup

Economic Policies Impacting EU Finance

LSE: Taking stock of Christine Lagarde’s challenges at the ECB : Lorenzo Codogno and Mara Monti argue that Christine Lagarde’s challenges at the helm of the ECB remain daunting, despite smooth sailing during her first press conference and a notably different communication style.  View Article
ECB: Christine Lagarde: Interview with “Challenges” magazine : Interview with Christine Lagarde, President of the ECB, covering topics such as Brexit's impact on the EU, green finance, negative interest rates and its impact on savers and banks or cryptocurrency. View Article


iNews: A Brexit deal can be done by December 2020 but it won't be much of a deal at all : It will still be years, not weeks or months, before we “Get Brexit Done”, writes professor Anand Menon, Director of the UK in a Changing Europe. View Article
Financial Times: Boris Johnson admits UK might not strike EU trade deal this year : Boris Johnson has admitted there is a slim chance that Britain will not conclude a trade deal with the EU before his self-imposed December 2020 deadline, pronouncing that it was “epically likely” it would happen. View Article
Financial Times: EU ramps up its Brexit demands : Jim Brunsden writes that the speed of decisions in trade talks will be tied to the UK’s willingness to accede to Brussels’ needs. View Article
Financial Times: Barnier sticks to firm line on Brexit talks : Michel Barnier warned that Brussels will not budge in its demand that Britain stay in line with the EU’s restrictions on state aid and its regulatory standards in exchange for a far-reaching trade deal. View Article
POLITICO: Barnier: Goods entering Northern Ireland from Britain will be checked after Brexit : Goods entering Northern Ireland from Great Britain after Brexit will be subject to checks and controls, the EU’s chief negotiator said, contradicting statements made by British Prime Minister Boris Johnson. View Article
BBC: Brexit: EU 'won't be rushed' on trade deal, says Simon Coveney : The EU "will not be rushed" on a trade deal with the UK after Brexit, according to Ireland's deputy PM. View Article
The Guardian: Brexit deal: EU may threaten 'to block' City's access to its markets : The EU will be unashamedly “political” and block the City of London’s access to European markets if Boris Johnson tries to exempt the UK from its laws. View Article
The Guardian: EU trade chief foresees 'financial services for fishing' Brexit bargain : The EU’s trade commissioner has suggested there could be a last-minute trade-off with Brussels offering the City of London access to European markets in return for European fleets retaining their fishing rights in British waters. View Article
EURACTIV: Global banks urge EU to ‘improve’ market access as Brexit looms : International banks have called on the European Union to make its system for financial market access more transparent and predictable to avoid hurting markets and consumers. The AFME said it was “timely” to review and improve the bloc’s financial market access regime known as equivalence. View Article
Graham Bishop #FBPE retweeted
European Parliament European Parliament
Brexit: Parliament highlights that assurances are needed on the protection of citizens’ rights to ensure its consent to the withdrawal agreement. Read the press release ??
Graham Bishop #FBPE retweeted
<a href=FT Brussels" src="" /> FT Brussels
EU ramps up its Brexit demands
Graham Bishop #FBPE retweeted
BBC Politics BBC Politics
UK government formally rejects calls for a second Scottish independence referendum to be held this year
Graham Bishop #FBPE Graham Bishop #FBPE
My notes on the latest #B4B debate are out! With the hottest topics of 2020: #Brexit #ESG #GreenFinance #ESM reform and the upcoming @ecb 's paper on Central Bank Digital Currency

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