Current Challenges Current Challenges of the EU Banking Sectorof the EU Banking Sector

Viktorija Proskurovska

Adviser, European Banking Federation

9th International Banking Forum9th International Banking ForumPodgorica, 9 May 2008Podgorica, 9 May 2008

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European Banking FederationEuropean Banking Federation

• EBF was founded in 1960.

• Today it has 31 Member associations and 11 Associate members.

• Through it’s Members alone, the EBF represents some 5000 banks with an estimated contribution of 5% to the area’s GDP and 1.5% of the area’s workforce.

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Bank Loans in EU-27, 2006Bank Loans in EU-27, 2006

• The total EU banking sector assets is threefold the area’s GDP;

• Deposits represent some 125% of GDP;

• Loans over 130% of GDP.Bank Loans in EU-27, 2006 Total of € 15,658 billion € 33,353 per capita

Consumer credit; 9%

Lending for housing

purchase; 35%

Corporate; 56%

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Outline of Current EBF PrioritiesOutline of Current EBF Priorities

• Banking Supervision• ‘Financial Turmoil’• Economic and Monetary

Affairs • Consumer Affairs

• Retail Integration• Tax• Accounting• Payment Services

Directive

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8 Policy Considerations on the global financial crisis:

1. Bringing confidence back to the markets;

2. The October 2007 ECOFIN Roadmap on financial markets is a sensible approach going forward;

3. Market-led efforts are under way;

4. Pragmatic actions to be sought to solve the current crisis;

Task Force on Financial TurmoilTask Force on Financial Turmoil

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5. Crisis is not originated by a failure of Basel II;

6. National supervisors to apply their powers to achieve relevant information disclosure;

7. More decisive action from authorities is needed;

8. It is not the time yet for final lessons.

Task Force on Financial TurmoilTask Force on Financial Turmoil

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Transparency of structured products: focus on Pillar 3 Disclosures in the Area of Structured Credit Products:

• Questionnaire for investors and counterparties;

• Analysis of current Pillar 3 Requirements (“Implementation Study”);

• Paper on Industry Good Practices.

EBF Work on Basel IIEBF Work on Basel II

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Thank you for your attention!Thank you for your attention!

For contacts:

Viktorija ProskurovskaAdviser – Economic and Monetary Affairs, Associates

European Banking Federationv.proskurovska@ebf-fbe.eu

www.ebf-fbe.eu