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Banking risks and regulation

Context

European banks fared the coronavirus (COVID-19) pandemic with stronger capital positions, higher liquidity buffers and better asset quality. This time European banks have been part of the solution, although these positive developments have been made possible also thanks to exceptional support measures from public authorities.

However, a negative impact from such a shock is eventually unavoidable provided that the public support is reaching limits while a stagflation risk is unfolding.

In addition, the fact remains that the European banking sector was already beset by structural weaknesses when the Covid crisis hits: persistent low profitability caused by excess capacity, lasting very low interest rates and low-cost efficiency has been driving bank valuations to historic lows.

Technology also opens the gates to further non-bank competition (such as from big tech firms), while at the same time providing scope to exploit new business opportunities.

Furthermore, banks also have to address the global emerging challenges posed by topics such as climate-related financial risks, cyber risk, and operational resilience.

Related regulatory challenges will add to those stemming from the implementation of the most recent additions to the banking regulatory standards – Basel III – launched in the wake of the 2008 financial crisis, which are expected to be implemented factoring in EU financing specificities.

Eurofi documents

Extracted from the main Eurofi publications (Regulatory Updates, Views Magazines and Conference Summaries)

Eurofi Views Magazine chapters

EU banking challenges

Diversity in the EU banking system - September 2024 new

Two insights concerning the latest developments in price stability and financial stability - September 2024 new

François Villeroy de Galhau - Governor, Banque de France

Building a resilient future: how Europe’s financial stability fosters growth and competitiveness - September 2024 new

Claudia Buch - Chair, Supervisory Board, European Central Bank

Sustainability risks in the banking sector - February 2024

François Haas - Autorité de Contrôle Prudentiel et de Résolution (ACPR) | José Manuel Campa - European Banking Authority (EBA) | Édouard Fernandez‑Bollo - European Central Bank (ECB) | Steven Vanackere - National Bank of Belgium (NBB) | Line Asker - DNB Bank ASA | Harm Bots - MUFG Bank Europe and Chief Executive Officer, Head of EU | Julia Symon - Finance Watch

Bank diversity in Europe: what evolutions? - September 2023

Edouard Fernandez-Bollo - European Central Bank (ECB) | Helmut Ettl - Austrian Financial Market Authority | Giuseppe Siani - Banca d’Italia | Karolin Schriever - Deutscher Sparkassen und Giroverband (DSGV) | Mike Velthaak - Rabobank | Benoît de La Chapelle Bizot - BPCE

Lessons learned from the banking turmoil - September 2023

Margarita Delgado - Banco de España | Dominique Laboureix - Single Resolution Board (SRB) | Hirohide Kouguchi - Bank of Japan | Ana Fernández Manrique - BBVA | Francesco Ceccato - Barclays Europe | Michael Schoch - UBS | Álvaro Benzo González-Coloma - PricewaterhouseCoopers Auditores, S.L.

Managing risks in the banking sector - September 2023

Nathalie Aufauvre - Autorité de Contrôle Prudentiel et de Résolution (ACPR) | Margarita Delgado - Banco de España | Elizabeth McCaul - European Central Bank (ECB) | Jose Manuel Campa - European Banking Authority (EBA) | Nathanaël Benjamin - Bank of England | Fernando Vicario - Bank of America Europe DAC | Kristine Braden - Citibank Europe Plc | Olivier Vigneron - Deutsche Bank AG | Hannes Frotzbacher - Erste Bank Croatia

Managing risks in the banking sector - April 2023

Nathalie Aufauvre - Autorité de contrôle prudentiel et de résolution (ACPR) | François-Louis Michaud - European Banking Authority (EBA) | Tanate Phutrakul - ING Group | Christian Edelmann - Oliver Wyman

Competitiveness of the EU banking sector - September 2022

Sylvie Goulard - Banque de France | Fernando Vicario - Bank of America Europe DAC | Helmut Etll - Austrian Financial Market Authority | Nicoletta Mascher - European Stability Mechanism

Taking advantage of bank diversity in Europe - September 2022

Giuseppe Siani - Banca d’Italia | Margarita Delgado - Banco de España | François-Louis Michaud - European Banking Authority | Edouard Fernandez-Bollo - European Central Bank | Jacques Beyssade - Groupe BPCE | Julia Symon - Finance Watch | Guido Maria Nola - BancoPosta - Poste Italiane

Implementing the Basel framework in Europe

Basel III implementation - February 2024

David Bailey - Bank of England | Paulina Dejmek-Hack - European Commission | Daniela Stoffel - Federal Department of Finance, Switzerland (FDF) | Makoto Minegishi - Bank of Japan | Thilo Schweizer - Commerzbank AG | Henning Dankenbring - KPMG in Germany

Basel III implementation - April 2023

José Manuel Campa - European Banking Authority (EBA) | Jonás Fernández - European Parliament | Alban Aucoin - Crédit Agricole | Martin Neisen - PricewaterhouseCoopers GmbH | Philip Evans - Bank of England | Anne Dunn - J.P. Morgan

Basel III implementation - September 2022

Pablo Hernández de Cos - Banco de España | Alexandra Jour-Schroeder - European Commission | Jonás Fernández Álvarez - European Parliament | Alban Aucoin - Crédit Agricole S.A. | Hirotaka Hideshima - The Norinchukin Bank

Resolution framework & EDIS

EU bank crisis management framework - February 2022

Edouard Fernandez-Bollo - European Central Bank | Elke König - Single Resolution Board | Helmut Ettl - Austrian Financial Market Authority | John Berrigan - European Commission | Jérôme Grivet - Crédit Agricole S.A. | Francesco Ceccato - Barclays Europe | Santiago Fernández de Lis - Banco Bilbao Vizcaya Argentaria | Johannes Rehulka - Raiffeisenbank International

EU bank crisis management framework - September 2021

Elke König - Single Resolution Board | Helmut Ettl - Austrian Financial Market Authority | Edouard Fernandez- Bollo - European Central Bank | Juan Poswick - BNP Paribas | Johannes Rehulka - Raiffeisen Bank International AG | Karl-Peter Schackmann-Fallis - Deutscher Sparkassen- und Giroverband

EU Bank crisis management framework - April 2021

Elke König - Single Resolution Board | Maria Velentza - European Commission | Helmut Ettl - Austrian Financial Market Authority | Martin Merlin - European Commission | Karl-Peter Schackmann-Fallis - Deutscher Sparkassen- und Giroverband | Jacques Beyssade - Groupe BPCE | Diederik van Wassenaer - ING Group

EDIS: is a political agreement nearer? - April 2020

Pablo Hernández de Cos - Banco de España | Jonás Fernández - European Parliament | Georg Huber - Deutscher Sparkassen- und Giroverband