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The Board particularly welcomed European Union initiatives such as the Investment Plan for Europe, the Capital Markets Union and the Digital Single Market.
The Board meeting made clear that European banks remain deeply concerned over the EU proposal on banking structural reform (BSR) because of the unintended consequences this may have on the banks’ ability to service the economy in supporting their clients, especially in times of market stress.
EBF Board members however support an emerging consensus among member states to move forward with a simplified BSR framework that preserves market making activities for liquidity and risk management.
Similarly, Board members remarked on the inconsistencies of the political advances in defining a Financial Transaction Tax (FTT) in some European Member states whilst wishing to promote a single capital market.
EBF Board members also exchanged views on the current international discussions on the calculation of Risk Weighted Assets (RWA) as a key metric for funds that banks need to hold against risk exposures.
They stated their support for risk-based models for capital calculation and agreed to engage further with national and European supervisors to support the use of internal models with strengthened requirements but without the overly restrictive constraints that international policy makers are considering.
Members exchanged views on current and future developments in regards to corporate governance in the banking sector and market conduct at the international and European levels.
The EBF Board took note of progress being made on the strategic themes which EBF has chosen for 2015: Financing Growth & the Single Market; Supervision & the SSM; Reputation; and Digital Banking.