EBA published its annual consumer trends report for 2017. The report covers the retail banking products that fall in the EBA's consumer protection mandate, including mortgages, personal loans, deposits, payment accounts, payment services, and electronic money.
The report also provides an overview of the topical issues identified in 2017 that may impact consumers and other market participants and these topical issues are indebtedness, banking fees and costs, selling practices, innovation in payments, foreign currency loans, alternative financial services providers, and innovative uses of consumer data. The report summarizes, where relevant, the measures EBA has taken to address some of the identified issues, including technical standards and guidelines related to the security of payment transactions, the transparency and disclosure of information on payment accounts, and the mis-selling of financial products. This report builds on information provided by the national competent authorities of the 28 EU member states as well as on input received from a selection of national consumer associations and the EBA Banking Stakeholder Group. Due to budget constraints, the external sources of information that EBA had used in previous years could not be drawn upon for the 2017 Report.
In its continued monitoring effort on the retail banking products, EBA has observed that mortgages continue to have the biggest impact on consumers, though consumer credit has seen a rapid increase in demand. Nevertheless, consumers tend to complain to their national competent authorities mainly about payment accounts and payment services. Due to the low interest rate environment, EBA has observed a gradual increase in the level of indebtedness across the EU as well the introduction of new or the increase in already existing fees and charges on payment accounts and loans. Security of innovative payment instruments and solutions was also highlighted as an important issue for consumers. However, issues such as selling practices and foreign currency loans, while still relevant for consumers, showed a slight decrease in importance.
Related Link: Consumer Trends Report 2017 (PDF)
Keywords: EBA, Europe, Consumer Trends, Report, Banking
The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.
The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.
The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.
The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).
The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.