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The latest proposal from EU cybersecurity agency ENISA concerns an EU certification scheme (EUCS) which vouches for the cybersecurity of cloud services and determines how governments and companies in the bloc select a vendor for their business. The document retains key provisions contained in earlier drafts such as a requirement that U.S. tech giants set up a joint venture with an EU-based company to qualify for the EU cybersecurity label. Another provision states that cloud service must be operated and maintained from the EU, while all cloud service customer data must be stored and processed in the EU, with EU laws taking precedence over non-EU laws regarding the cloud service provider. The latest draft sets out the possibility for these tough requirements to be extended to the third highest security level. EU countries are now reviewing the latest draft after which the European Commission will adopt a final scheme.

Persons: OpenAI's, CCIA, ENISA, Alexandre Roure, Foo Yun Chee, Jonathan Oatis Organizations: European, Google, Microsoft, Big Tech, EU, Tech, European Banking Federation, European Savings Banks Group, Association for Financial Markets, Federation, Insurance, Thomson Locations: BRUSSELS, European Union, EU, Europe

☆ Banks behind 70% jump in greenwashing incidents in 2023 -report
▼ + stars: | 2023-10-03 | by ( ) www.reuters.com time to read: +4 min

REUTERS/Stephanie Lecocq/File Photo Acquire Licensing RightsLONDON, Oct 3 (Reuters) - The number of instances of greenwashing by banks and financial services companies around the world rose 70% in the past 12 months from the previous 12 months, a report on Tuesday showed. European financial institutions accounted for most of those instances, and much of the greenwashing involved claims about fossil fuels. "Over 50% of these climate-specific greenwashing risk incidents either mentioned fossil fuels or linked a financial institution to an oil and gas company. The European Banking Federation did not respond to a request for comment on the increasing number of greenwashing incidents found by RepRisk. The banking and financial services industry is second only to oil and gas for the number of greenwashing incidents, RepRisk said.

Persons: Stephanie Lecocq, RepRisk, greenwashing, Tommy Reggiori Wilkes, Mark Potter, Jan Harvey Organizations: La Defense, REUTERS, UK Finance, European Banking Federation, watchdogs, Thomson Locations: Paris, France

The European Banking Authority (EBA) said the test covered 70 banks, 20 more than in 2021 with 57 from the euro zone whose test was overseen by the European Central Bank, representing about 75% of banking assets in the EU. Of the 14 German banks tested, 8 were below the EU average for CET1 and leverage ratio, while 6 were above. The European Banking Federation, an industry body, said the results reaffirmed the resilience of the EU banking sector. The watchdog said that in year three of the test, 37 banks fell below capital levels that trigger curbs on payouts. Deutsche Kreditwirtschaft, an umbrella association representing the German financial industry, said the results proved that German banks were "resilient" but it criticized the ECB's approach.

Persons: Goldman, Banks, markups, Tom Sims, John O'Donnell, Mathieu Rosemain, Mark Potter Organizations: European Union, European Banking Authority, European Central Bank, EU, JPMorgan, Volkswagen Bank, La Banque Postale, European Banking Federation, Deutsche, ECB, Thomson Locations: FRANKFURT, Europe, United States, France, Frankfurt, Paris

☆ G20 watchdog to study Silicon Valley Bank, Credit Suisse turmoil
▼ + stars: | 2023-06-01 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

European banking stocks plunged after the collapse of Silicon Valley (SVB) bank in the U.S. in March, creating turmoil that lead to the forced takeover of ailing Credit Suisse by UBS in Switzerland. Knot, who also heads the Dutch central bank, said the FSB has begun evaluating lessons from how the U.S. and Swiss authorities had responded to these events. "Why did FINMA, the Swiss supervisor, use a market and not a resolution solution to enable this sale? After all, we have come a long way in improving crisis preparedness in the banking sector," Knot told an event held by the European Banking Federation. Social media is also having an impact on the financial sector with one tweet able to cause a bank run to create liquidity problems, Knot said.

Persons: Klaas Knot, SVB, Huw Jones, Jason Neely, Sharon Singleton Organizations: Suisse, UBS, Basel III, European Banking Federation, Regulators, Thomson Locations: Silicon, U.S, Switzerland, Basel, Swiss

☆ ECB rejects banking sector call for lower capital to boost lending
▼ + stars: | 2023-01-27 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

REUTERS/Pascal RossignolLONDON, Jan 27 (Reuters) - The European Central Bank (ECB) on Friday rejected calls from Europe's banks to ease capital rules to boost lending and put them on an equal footing with U.S. rivals. "Policymakers should redouble their efforts to complete the banking and capital markets unions," the report said, referring to EU projects to deepen its capital market and create a more competitive cross-border banking market. "The largest global European banks have even slightly lower requirements than their counterparts across the Atlantic," an ECB spokesperson said. "It is also questionable that lower capital requirements would lead to higher lending: what is proven is that low levels of capital lead banks to abruptly reduce lending in a crisis, thus deepening the adverse impact on the economy," the ECB said. The EU is finalising the remaining leg of global bank capital rules that were written in response to the financial crisis, with temporary waivers from some elements in the teeth of ECB opposition.

☆ Ease capital rules on EU banks to boost lending, banking industry says
▼ + stars: | 2023-01-27 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

Banking regulation is internationally coordinated by regulators, but differences remain in how the rules work in practice, and how they are implemented, the report said. EBF Graphic 2The report said the difference in regulatory-induced costs at EU banks compared with their U.S. peers can explain 0.8-1.0 percentage points of a gap in return on equity, which is a measure of profitability. "Policymakers should redouble their efforts to complete the banking and capital markets unions," the report said, referring to EU projects to deepen its capital market and create a more competitive cross-border banking market. Banks now hold more capital after being bailed out by taxpayers in the 2008 financial crisis. The EU is finalising the remaining leg of global bank capital rules that were written in response to the financial crisis, with temporary waivers from some elements.

☆ Germany joins battle against EU ban on financial product commission
▼ + stars: | 2023-01-16 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

EU financial services chief Mairead McGuinness set out last month a detailed case in favour of banning "inducements", or commission paid by a bank or insurer to financial advisers who have sold their products. McGuinness could propose a ban in her upcoming "retail investment strategy" to deepen the bloc's capital market by attracting more retail investors. EU states and the European Parliament would have the final say on any ban. "Banning inducements in general would mean a serious setback to efforts to increase retail investment in the capital markets," he added. Insurance Europe, an insurance industry body, said an outright EU-wide ban would undermine the goals of the retail investment strategy.

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