About: banking Archives

Bank fees in the EU are still too "opaque" and vary significantly across different member states, hampering the functioning of the internal market, the European Commission warned yesterday (22 September).

European finance ministers yesterday (2 September) agreed it was time to change the culture of bankers' bonuses, but some said it would be a challenge to persuade Britain to sign up to strict limits.

The European Central Bank's quarterly survey of bank lending, to be published tomorrow (29 July), will show that credit conditions are stabilising. But this assessment is at odds with complaints by businesses that bank credit is hard to get.

Banks in need of state aid to face the crisis will have to undergo stress tests in order to assess the viability of their restructuring plans. In return, they will be able to receive public support for a longer period than usual, according to new guidelines issued by the European Commission.

Crisis-hit banks seeking European Union regulatory approval for state aid may have to sell assets and curb their market and geographical expansion, according to a draft EU document on bank restructuring rules.

Standard and Poor's cut Ireland's sovereign credit rating for the second time in three months yesterday (8 June) and warned it could fall further because of concern about the soaring cost of bailing out the country's banking sector. As a consequence the euro slumped against the dollar.

Austria, Belgium, and Luxembourg have voiced their displeasure at being placed on the OECD's 'grey list' of countries that are not yet compliant with OECD tax cooperation rules.

The EU's Payment Services Directive (PSD) is in danger of "creating a legislative labyrinth," warns Professor Maria Chiara Malaguti in a recent paper for the European Credit Research Institute (ECRI).

Luxembourg, Austria and Switzerland vowed on Sunday (8 March) to protect their banking secrecy and speak with one voice to influence how the G20 group of nations cracks down on tax havens. But the Swiss also got unexpected support from the Czech EU Presidency on the issue.

The European Commission yesterday (25 February) called for a common, transparent approach by banks and governments in dealing with impaired assets, such as the mortgage-backed securities at the root of the credit crunch.

French State Secretary for EU Affairs Bruno Le Maire insisted that world leaders deliver "concrete responses" to the financial crisis at the G20 summit in London by moving forward on tackling tax havens and tightening banking regulation.

The European Investment Bank (EIB) is ramping up its support for small and medium-sized enterprises (SMEs) by making up to €30 billion available over the next three years and providing technical assistance to microfinance institutions.

As the economic crisis deepens, the idea of a centralised EU supervisor for multinational banks and insurance companies is gaining momentum, despite traditional opposition from Germany and the UK.

Despite the ongoing financial crisis, the European Commission seems to be delaying addressing current shortcomings in banking supervision, considered a key factor in the onset of the crisis. Instead, it has appointed a team of experts to present suggestions on the issue by next spring, sparking criticism and raising concern regarding some of the members chosen for the new panel.

British Prime Minister Gordon Brown today (15 October) called on world leaders to sign up to his new plan for a major overhaul of the global financial order, introducing a worldwide mechanism to supervise international financial institutions and bringing an end to shadow banking and dubious practices by major companies.

A coordinated EU approach is needed to save the "dysfunctional state of the euro area money market," including "recapitalising large banks" and "restarting inter-bank lending," writes Daniel Gros, the director of the Centre for European Policy Studies (CEPS), on VoxEU.org.

The fifteen euro area countries have outlined a common strategy to inject fresh capital into their ailing banking sectors in a move which broadly replicated a blueprint presented last week by UK Prime Minister Gordon Brown.

A surprise cut in interest rates by the European Central Bank (ECB) came as a sign that recession fears have overtaken those concerning inflation, as European financial markets yesterday continued to tailspin despite government attempts to prop them up.

EU finance ministers yesterday (7 October) agreed to raise the minimum guarantee for individual bank deposits from €20,000 to €50,000 in an attempt to reassure European account holders.

The EU should concentrate on stimulating the mobility of accounts across borders instead of over-regulating national retail banking markets, argues Stefan Schäfer in a Deutsche Bank Research paper.

The leaders of France, Germany, Britain and Italy are due to meet in Paris on Saturday to forge a common EU response to the financial crisis after the uproar triggered by suggestions to create a US-style fund to save ailing European banks.

The European Commission yesterday (1 October) again called for a "structured European response" to the current financial crisis but showed a cautious approach in the long-awaited proposals it put forward to revise banks’ capital requirements.

The European Commission yesterday (1 October) gave the thumbs up to a rescue plan for British mortgage lender Bradford & Bingley and is expected to do the same for Belgo-Dutch bank Fortis within days.

The European Commission yesterday (30 September) strongly condemned the US House of Representatives' rejection of a $700 billion rescue plan, calling on Washington to assume responsibility for the global financial crisis that originated in the States. Meanwhile in Europe, calls for a coordinated EU approach to the turmoil are growing.