The ECB’s Pandemic Emergency Purchase Programme (PEPP)
by Gordon Kerr and Bob Lyddon, with Enrico Colombatto 26 May 0
What is PEPP? In March 2020, the ECB and European Commission announced the inception of PEPP as a ‘non-standard monetary policy measure’ to deal with the risks to monetary transmission posed by the pandemic. It is in fact the eighth eurosystem bond buying programme. Three of these have been (...)
Divergent Software Costs Capital Treatment for UK and EU Banks. Merely a Technicality?
by Gordon Kerr, Cavin O’Driscoll with Enrico Colombatto 24 March 0
In February, the Bank of England (BofE) published its latest proposals for new regulations, which are openly stated to continue the implementation of the global Basel III banking standards. This 87-page Consultation Paper is presented as the next phase of reforms which respond to the 2007-8 (...)
The ECB Accelerates Work on a Central Bank Digital Currency
by Gordon Kerr, Cavin O’Driscoll with Enrico Colombatto 10 February 0
Last October the ECB published a 55-page paper on the pros and cons of a central bank digital currency (CBDC). This paper concluded that research should continue at only a modest pace. It was therefore surprising that a brief statement, accelerating the project, was recently issued. We learn (...)
The Brexit Agreement Omitted Financial Services, Decisions on Which Will be Taken in 2021. What do we Expect?
by Gordon Kerr, Cavin O’Driscoll with Enrico Colombatto 13 January 0
The UK’s 2019 current account deficit with the EU was GBP 118 billion. The Trade and Co-operation Agreement (TCA), commonly referred to as the Brexit agreement, is therefore of greater value to the EU by protecting this imbalance with tariff free trade, than to the UK. However, by excluding (...)
A Digital Euro – What is it, What Form Could It Take and When Might It Happen?
by Gordon Kerr, Cavin O’Driscoll with Enrico Colombatto 16 December 2020 0
The concept of central bank issued digital currencies (CBDC) has been around for several years, arguably since bitcoin became established around 2015. The topic is now very hot even in Europe, with Sweden planning to launch a retail focussed e-krona in 2021. Switzerland is also working on this (...)
Cyprus’ Exploitation of Citizenship Investment Schemes Raises Questions over Many Countries’ Commitment to Europe’s Banking Rules
by Gordon Kerr, Cavin O’Driscoll with Enrico Colombatto 11 November 2020 0
Background and History of Citizenship Investment Schemes (‘CIS’). Sixteen EU member states (plus the United Kingdom) operate schemes enabling a residency permit to be obtained by a non-EU citizen in return for a substantial investment, minimum €1 million. Residence in most member states (...)
Spain’s Caixabank Acquires Bankia, thanks in large part to Badwill
by Gordon Kerr, Cavin O’Driscoll with Enrico Colombatto 14 October 2020 0
Whilst diplomatically presented as a merger, the union of Spain’s third and fourth largest banks, announced mid-September, is in fact the acquisition of Bankia by Caixa. Shares in multiple European banks rose on the news - Société Générale and Paribas of France were up 5%, Commerzbank’s shares rose (...)
Will the November US Elections Lead to Changes in Bank Regulation?
by Gordon Kerr, Cavin O’Driscoll with Enrico Colombatto 16 September 2020 0
Whichever candidate wins the forthcoming US election, America’s big banks expect continuing concessions in the two key areas of monetary policy and bank regulation. Monetary policy looks unlikely to change much, with the Federal Reserve (Fed) under Jerome Powell committed to keeping interest (...)
Wirecard Exposes German Regulator BaFin
by Gordon Kerr, Cavin O’Driscoll with Enrico Colombatto 15 July 2020 0
The usual reaction to major accounting-based corporate collapses is that they are ‘one-offs’. When the truth comes out, it is relatively easy to understand the methods and motives of the bad guys, and yet it always seems surprising that auditors and regulatory watchdogs did not spot the (...)
What are the Creditor Countries’ True Exposures Under TARGET 2?
by Gordon Kerr, Cavin O’Driscoll with Enrico Colombatto 17 June 2020 0
Ever since concerns were first voiced in Germany about the Bundesbank’s exposure to the Eurosystem’s payment and settlement system known as TARGET2, the Bundesbank itself has sought to assuage such concerns. In its March 2011 Monthly Report , the Bundesbank accepted that TARGET exposures (...)