EC published the 2020 edition of the Annual European Financial Stability and Integration Review. The review examines recent economic and financial developments and their impact on financial stability and integration in EU. The focus this year is on the banking sector and, in particular, on three main challenges it faces—the increased investments in certain assets, the emergence of cryptocurrencies, and the progress in relation to cross-border banking. In addition, ECB published a report, along with a statistical annex, on financial integration and structures in the Euro area. ECB also published remarks by Luis de Guindos, Vice-President of ECB, on the occasion of the publication of the report.
The EC review this year combines different perspectives on the various structural changes that are taking place in the financial system in Europe. The Annual European Financial Stability and Integration Review presents an in-depth review of the impact and policy implications of the challenges on the financial industry and on banks in particular. The review focuses on the emergence of digital money, including cryptocurrencies and their impact on banks and the financial system. The review also analyzes cross-border-banking developments in EU, focusing on the implications and developments with respect to the macro-prudential measures and the Banking Union, including implementation of the Single Resolution Mechanism and the Bank Recovery and Resolution Directive.
The ECB report on financial integration and structures in the Euro area describes key structural developments such as the process of financial integration, changes in financial structure, and the process of financial development or modernization. It discusses selected financial-sector policies, notably policies related to the European Banking Union and Capital Markets Union and contributes to the debate on how European Economic and Monetary Union can be deepened. The report highlights that the last decade saw rapid growth in fintech entities. However, the sector lacks a statistical classification, which is key to being able to analyze it better and compare it with other sectors of the financial industry. Over time, further development of equity markets could make a significant contribution to decarbonizing EU economies. New ECB research suggests that countries with economies that have a funding structure more focused on equity than bank credit or other forms of debt have reduced their carbon footprints more than other countries in recent decades. Furthermore, non-bank financial intermediaries, of which investment and pension funds are the fastest growing type, now account for almost 60% of total euro area financial assets. The report notes that this deserves attention, as it could reflect not only financial development, but partly also a migration of risks from the banking sector to less regulated sectors.
- EC Notification
- European Financial Stability and Integration Review (PDF)
- ECB Press Release
- ECB Report
- ECB Statistical Annex (PDF)
- Remarks by Luis de Guindos
Keywords: Europe, EU, Banking, Insurance, Securities, Financial Stability, Banking Union, Capital Markets Union, Climate Change Risk, BRRD, SRM, Resolution Framework, EC, ECB
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Previous ArticleEBA Issues Opinion on Extension of Macro-Prudential Measure by NBB
The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.
The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).
The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.
The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."
The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.