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How should the EU banking framework evolve in the context of the economic crisis?

Day 3 Morning

Friday 11 September

Room :

HALL 1 C

Speakers

Chair
Pablo Hernández de Cos - Governor, Banco de España
Public Authorities
Luis Garicano - MEP, Committee on Economic and Monetary Affairs, European Parliament - ECON
Robert Holzmann - Governor, Oesterreichische Nationalbank
Othmar Karas - Vice-President & MEP, Committee on Economic and Monetary Affairs, European Parliament
Yves Mersch - Member of the Executive Board and Vice-Chair of the Supervisory Board, European Central Bank (ECB)
Luigi Federico Signorini - Deputy Governor and Member of the Governing Board, Banca d'Italia
Industry Representatives
Alban Aucoin - Head of Public Affairs, Credit Agricole Group
Kinner Lakhani - Head of Group Strategy & Development and Head of Investor Relations, Credit Suisse
Johanna Lybeck Lilja - Executive Adviser, Nordea Bank Abp

Objectives of the session

We are at present in midstream of the pandemic and health and economic outcomes are far from being easy to anticipate. Yet the consequences of the pandemic on EU economies and on bank risk profile are already substantial.

In this context, the session is dedicated to proposing a rapid description of the main challenges faced or anticipated for the banking sector of various EU member states and to outline the EU policies necessary to support the expected role of the banking sector in a lasting effort to repair the EU economy.

In addition, the panelists might draw preliminary lessons on the respective role of banks’ regulatory capital and public budgets on weathering events which may be as frequent as unpredictable, and outline the possible consequences on the regulatory framework, and notably those Basel reforms still to be implemented.

Points of discussion

What have been the contribution of the EU banking system to the financing of the EU economy and sovereigns during the Covid19 outbreak, and what are the expected consequences on EU banks’ profitability and risk profile?

What is the expected role of the banking sector in the effort to repair the EU economy and what are the EU policies necessary to support their role?

How well did Basel III flexibility and its macroprudential layer deal with such an extreme event as the current crisis? Should the banking Basel regulatory framework evolve to address this new context?