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Banks support European Commission plans for long-term financing

Date

27 Mar 2014

Sections

Euro & Finance
  • Targeted policy efforts recognise significant role of banks in financing economy
  • Banks welcome greater emphasis on financing exports and securitisation
  • EBF reiterates call for comprehensive impact assessment of new regulation

The European Banking Federation looks forward to further cooperating with the European institutions on plans for a proposal for long-term financing that the European Commission presented earlier today. Long-term financing is key when it comes to encouraging economic growth. Long-term financing is also a complex topic with broad implications that requires targeted policy efforts such as those that now are being considered.

The EBF is pleased to see the Commission recognizes that banks will indeed continue to play a significant role in the financing of the European economy.

“The capability of banks to fund the real economy has been adversely impacted by new regulations.” said EBF Chief Executive Guido Ravoet. “Some provisions in the new capital regime for banks make securitisation more costly and capital intensive, whilst some elements of the new insurance rules make it less attractive for insurers to buy securitised products.”

“We are convinced that improved overall coordination of the new rules can benefit the economy, and we reiterate our call for a comprehensive impact assessment of all the new rules in relation to each other,” said Mr Ravoet.

The EBF welcomes the greater emphasis that the Commission places on the longer-term financing of exports. Banks also welcome recognition of the importance of securitisation in the financing of the economy. The EBF is keen to work further with the Commission on the various initiatives, such as the Prime Collateralised Securities initiative (PCS)[1], to revive high quality securitisation. EBF recalls that the performance of EU-originated securitised instruments has been exemplary with negligible credit losses in the wake of the crisis.

About the EBF:

Launched in 1960, the European Banking Federation is the voice of the European banking sector from countries in the European Union and the European Free Trade Association. Members of the federation are 32 national banking associations. The EBF represents the interests of some 4,500 banks, large and small, wholesale and retail, local and cross-border financial institutions. Together these banks account for over 80 percent of the total assets and deposits and some 80 percent of all bank loans in the EU alone.

 

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