The 21st International Conference of Banking Supervisors (ICBS), hosted virtually by the Office of the Superintendent of Financial Institutions (OSFI) and the Bank of Canada, was held on 19-22 October 2020. Approximately 450 senior banking supervisors and central bankers representing close to 100 countries took part. Delegates discussed a wide range of issues related to the future of banking supervision in a changing world. The discussions covered the digitalisation of finance and the evolution of banking models, operational resilience, climate-related financial risks and remote working arrangements. Participants also exchanged views on the challenges for central banks and bank supervisors in advanced and emerging market economies during the Covid-19 pandemic, as well as adapting to the changing operating environment for central banks and supervisors. Continue reading…

The Financial Conduct Authority (FCA) has been recently urging consumers struggling to make repayments due to the impact of coronavirus (Covid-19), to speak to their lenders about options available to them. The FCA has put in place a package of support for people in difficulty to ensure help is available after 31 October. A survey of more than 7,000 people, conducted by the FCA during the coronavirus pandemic, found 12 million people in the UK had low financial resilience, meaning they may struggle with bills or loan repayments. The data shows 2 million of those who are not financially resilient have become so since February. Continue reading…

A phenomenal degree of capital markets funding upheld businesses in the first semester of 2020. As such, bond issuance has risen, with growth of social bonds solidifying Europe’s ESG administration. However, an undeveloped equities market implies SMEs keep on depending on loans from banks, limiting their chances to develop. Securitisation volumes kept on falling, impeding the banks’ ability to extend their loaning. Capital market unions required like never before to help long haul recuperation. European capital business markets provided gave record funding amounts to help businesses and economies this year. However, the absence of progress on the Capital Markets Union could stifle Europe’s economic recovery, as per a report published on October 28th by the Association of Financial Markets in Europe in a joint effort with 10 other international and European organisations. Continue reading…

The European Central Bank (ECB) has recently announced an enhanced internal whistleblowing framework to protect the integrity of the institution. It encompasses a new internal tool for simple and secure reporting of potential breaches of professional duties, inappropriate behaviour or other irregularities, and the possibility for whistleblowers and witnesses to request protection from retaliation. The new IT tool also allows for anonymous reporting. Continue reading…

The Financial Stability Board (FSB) recently published a global transition roadmap for LIBOR. The roadmap sets out a timetable of actions for financial and non-financial sector firms to take in order to ensure a smooth LIBOR transition by end-2021. In July the FSB reaffirmed that financial and non-financial sector firms across all jurisdictions should continue their efforts to make wider use of risk-free rates in order to reduce reliance on IBORs where appropriate and in particular to remove remaining dependencies on LIBOR by the end of 2021. Continue reading…

The Financial Stability Board (FSB) recently published a letter from its Chair, Randal K. Quarles, to G20 Finance Ministers and Central Bank Governors ahead of their virtual meeting. The letter notes the extraordinary challenges for the global financial system this year. The FSB will provide a comprehensive report on the financial stability implications of, and policy responses to, the COVID Event to the November G20 Summit, including a holistic review of the market turmoil in March. The holistic review will inform future steps of the FSB in 2021 under the Italian G20 Presidency to improve the resiliency of the NBFI sector while preserving its benefits. Continue reading…

Recently, the Commission takes further steps in the Digital Decade agenda to strengthen Europe’s digital sovereignty, as announced by President Ursula von der Leyen in her State of the Union Address on Wednesday. The Commission has proposed a new Regulation for the European High Performance Computing Joint Undertaking to maintain and advance Europe’s leading role in supercomputing and quantum computing. It will support research and innovation activities for new supercomputing technologies, systems and products, as well as foster the necessary skills to use the infrastructure and form the basis for a world-class ecosystem in Europe. The proposal would enable an investment of €8 billion in the next generation of supercomputers – a substantially larger budget compared to the current one. Continue reading…

by Geert Vermeulen

The FinCEN files have caused quite some commotion recently. A large amount of secret information about suspicious transactions has been revealed and we are still working our way through the information. Most of the newspaper articles commenting on the FinCEN files focus on what went wrong at the banks. And as with many of these X-leaks, Y-papers and Z-files, the revelations will likely lead to a number of prosecutions, more legislation and stricter supervision. But what do we see when we take a step back and look at it from a distance? Above all, we see a lot of suspicious transactions. That was to be expected, of course, because that was the reason why these transactions were reported to FinCEN in the first place. You could also say that the system is working! And perhaps the banks on the other side of the transaction reported them as well? We don’t know. Continue reading…

The European Commission recently launched a new Customs Union Action Plan setting out a series of measures to make EU customs smarter, more innovative and more efficient over the next four years. The announced measures will strengthen the Customs Union as a cornerstone of the Single Market. They also confirm its major role in protecting EU revenues and the security, health and prosperity of EU citizens and businesses. In her political guidelines, President von der Leyen announced that the Customs Union needed to be taken to the next level, in particular, by ensuring an integrated European approach to customs risk management, which supports effective controls by EU Member States. The Action Plan does just that. Continue reading…