European Association of Co-operative Banks’ Post

Don't miss out on this crucial discussion! Register now to join us online for our Apropos Coop Banking event, exploring how banks can navigate the challenges ahead and keep Europe competitive. #Webinar #Banking #CooperativeBanks

European banks – back for good? Europe's banking industry broke a 15-year record in 2023, with nominal net income surpassing pre-financial crisis highs, driven by rising interest rates. Despite reduced credit demand, low risk costs, and comfortable capital ratios, banks saw exceptional returns to shareholders. Both cost-income ratio and post-tax return on equity significantly improved, putting European banks on par with US competitors for the first time in years. https://lnkd.in/db6YQQEA #banking #bankingsector #investmentview #globaloutlook2024 #industries #banking #europe #us #inflation #economicoutlook #investment #themes #sustainablefinance #banks #view #banks #guide #predictions2024 #macroeconomics #correlation #graphs #assetallocation #forecast #transition #monthlyreview #policy #greentransition  #fixedincome #duration #healthinnovation  #markets #growthmarketing

IIAC Newsletter - June 18, 2024 – Industry News: International AGING POPULATIONS AND THE STABILITY OF THE BANKING SYSTEM: BANK OF INTERNATIONAL SETTLEMENTS In a Working Paper released June 12, 2024, the Bank of International Settlements (BIS) analyzes how ageing populations might affect the stability of banking systems through a comprehensive examination of advanced economies over the past two decades (2000-2022). The findings suggest that ageing populations improve banking stability by decreasing solvency risk as loan demand drops (an older population has fewer requirements for housing or durable goods financing)… Read more: https://lnkd.in/gfUdrQkE ------ PRIVATE MARKETS GOVERNANCE ISSUES RISE TO THE FORE: CFA INSTITUTE A global survey of investment professionals conducted by the CFA Institute, Research and Policy Center, (results published June 12, 2024) revealed mixed views and practices regarding private markets. 51% of survey respondents globally believe problems in private markets are not significant, but practices could be improved; 24% believe there are substantial problems or even market failures in private market practices, while 17% believe private markets function well… Read more: https://lnkd.in/gDWqECZF #news #bank #finance #investment #investing #government #banking #bank #canada #aging #stats #statistics #issues #privatemarkets

🇪🇺The European Banking Authority (EBA) has just released its 2023 Annual Report, outlining the main achievements and activities carried out over the past year. The report highlights how the #EBA has contributed to the stability and effectiveness of the European financial system through simple, consistent, transparent, and fair regulation, as well as supervision that benefits all EU citizens. Despite global challenges such as the ongoing war in #Ukraine, turmoil in the US banking system, high inflation and interest rates, and the lingering effects of the #COVID19 pandemic, the EBA completed over 95% of its mandated tasks. Key achievements in 2023 include finalizing the implementation of #BaselIII in the EU, conducting an enhanced EU-wide stress test, and advancing digital finance and Markets in #CryptoAssetsRegulation (MiCAR/DORA) mandates. Additionally, the EBA has strengthened its capacity to combat #moneylaundering and #terroristfinancing in the EU, implemented the environmental, social, and governance (ESG) roadmap, and conducted #riskassessments. Other areas of focus included payment services, consumer and depositor protection, equivalence, and supervisory convergence and independence

#LatePost At #BancoSantander , we resumed Day 2 sessions with Institute of International Finance #IF under the #FutureLeaders Program in Madrid. The second session was all about #Monetary #Policy and #Interest #Rates. Here are some highlights: - #Global #financial #crisis have changed everything; excessive leverage that spread across too many players. - The common views are that Negative #interest #rates are never to be seen again. The significantly low interest rates have rewarded spending rather than remunerating sacrifice, and this was a major cause to the sharp increase in inflation. - #Banks are #cyclical, they differ from utilities Sector that benefit from low but constant profit on the long term. If banks’ profits are capped at good times, they may not survive the bad times. - Speaking about #Digitalization of #Finance, Neo Banks, whom once wanted to swallow banks, now want banks to swallow them. The system needs to be careful of fostering #competition in a heavily regulated industry such as #Banking.

According to the International Monetary Fund, the Belgian financial sector has proved resilient to a series of shocks in recent years and remains well capitalised and profitable. Belgian banks, insurance companies and investment funds are moreover capable of absorbing severe macro-financial risks and shocks. In its recommendations, the IMF points out in particular the challenges to be met in terms of strengthening the macroprudential policy framework and to improvements that can be made to financial sector supervision and financial crisis management in Belgium. This Financial Sector Assessment Programme or FSAP is carried out every five years in countries with a systemically important financial sector, such as Belgium. Read the full report here. 👇

#SUERFpolicybrief “In The Thick Of It: An Interim Assessment Of Monetary Policy Transmission To Credit Conditions” by Margherita Bottero and Antonio Conti, Banca d'Italia Assessing the transmission of monetary policy during a tightening phase crucially requires accurately modelling the underlying forces driving the economy, which may vary from cycle to cycle. The Granger and Yeon thick modelling approach (2004) effectively minimizes the risk of model misspecification by estimating a range of reasonable forecasting models. When predicting the cost of credit to euro-area non-financial corporations during the unprecedented 2022-23 ECB’s monetary policy tightening, this method yields three policy-relevant findings. The wide range of the resulting forecasts highlights the uncertainty surrounding the evolution of lending rates. Including borrower riskiness significantly improves the accuracy of the forecasts and emerges as a key factor in explaining the dynamics of lending rates during the current tightening of the ECB’s monetary policy. A significant degree of credit supply restriction is still in the pipeline. https://lnkd.in/gyngnwwr #MonetaryPolicyTransmission #CostOfCredit #ECBBankLendingSurvey #ThickModellingForecasting #Overtightening

EMEA President, Prof. Rym Ayadi, participated at the International Monetary Conference (IMC) 2023 which took place in Dubai, on 11 – 13 November 2023. The Conference opened with the remarks of IMC President, John C. Dugan Chair, Citigroup Inc. Among the high-level participants of the Conference was Timothy F. Geithner, President, Warburg Pincus, New York, H.E. Abdulla Bin Touq, Minister of Economy, United Arab Emirates, and H.E. Dr. Hala H. Elsaid Minister of Planning and Economic Development, Arab Republic of Egypt. Prof. Ayadi participated in the session “Banking as a Force for Social Progress”. In her intervention Prof. Ayadi underlined “Banks have a tough journey to ride, while diving in heightened context of uncertainty to the global geopolitical tensions, the climate crisis and the digital transition, but have to contribute to the potential to act as catalysts for economic empowerment and social progress, not just through their financial activities focused on the short term value creation, while maintaining financial stability, but by embodying the principles of inclusivity, sustainability, good governance, ethical responsibility and transparency that have long term value to all. By investing in socially progressive and community-driven initiatives (healthcare, education, infrastructure), promoting financial literacy, and embracing equitable practices, banks can help build a more resilient, equitable and progressive society that is centered on the wellbeing of the individual – this is an essential condition to move from a short term model of development to a more long term model that places the wellbeing of individual and the planet at the center.” CEPS (Centre for European Policy Studies) Bayes Business School European Banking Authority (EBA) https://lnkd.in/dBPkg6HS

It is good to see our paper on global and domestic financial cycles (joint with Iñaki Aldasoro, Claudio Borio and Piti Disyatat) published in the International Journal of Central Banking (IJCB): https://lnkd.in/dN6wiYS3   We compare and contrast two prominent notions of financial cycles: domestic (DFC) and global (GFCy). The two notions share a common analytical basis - the "procyclicality" of the financial system.   Yet, a number of distinguishing features stand out: 1. Underlying components: financial asset prices and capital flows for the GFCy; credit and property prices for the DFC; 2. Empirical properties: the GFCy has a shorter duration and is primarily linked with traditional business cycles; the DFC has a longer duration and is predominantly linked with medium-term business cycles; 3. Policy focus: "dilemma versus trilemma" for the GFCy; "lean versus clean" for the DFC.   Despite these differences, the two cycles tend to come together around crises.   Traditional GFCy measures mainly reflect developments in AEs. A simple alternative measure is much more relevant for EMEs.   #emergingmarkets #EMEs #globalfinance #propertyprices #financialcycles #procyclicality #assetprices #capitalflows #BIS