Download The European Savings Banks Group (ESBG)

The Savings Banks Industry in
Europe and worldwide
The role of ESBG/WSBI
The European Savings Banks Group
(ESBG)
1963: Establishment of the European Savings
Banks Group, based in Brussels
ESBG:
European banking association representing
the interests of savings and socially
committed retail banks
Forum for cooperation and exchange of
experiences
Platform for joint initiatives, facilitating
cross-border projects in the banking sector
ESBG in figures
 29 Members (banks and associations) from
European countries (incl. 20 EU countries)
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Banks represented:
Branches:
Total assets:
Non-bank deposits:
Non-bank loans:
Staff:
864
60,899
6,061 billion
€2,935 billion
€1,685 billion
950,000
= 1/3 of Europe’s Retail Banking
Market
26
The European Savings Banks Group
(ESBG)
Added-value of the ESBG:
=> Forum for cooperation
Business Cooperation
Promotion and facilitation of cooperation and
exchange between members on a
bilateral/multilateral basis to:
 achieve a more global outreach
 accompany their customers abroad
Current Projects:
The International Business Network
The International Business Network
Capital Markets Committee
The World Savings Banks Institute
(WSBI)
1924: Creation of the International Savings Banks
Institute in Milan, subsequently based in Geneva
Objectives:
1. International advocacy: promotion of proximity
banking through the savings banks model
2. Vehicle for cooperation between members;
3. Training and consultancy
Institution building; Organisation and operations
development; Management and staff training;
Research and policy formation projects; Track
record in 70 countries since 1992
WSBI in Figures
Europe:
36 Members
30 countries
Asia-Pacific:
22 Members
16 countries
Americas:
16 Members
13 countries
Africa:
37 Members
31 countries
110 members from 90 countries
Only international retail
banking organisation
worldwide!
 Institutions represented: 6000 (January 2009)
 Branches:
162,000
 Total Assets:
 Non-Bank Deposits:
 Non-Bank Loans:
€9,000 billion
€4,637 billion
€4,363 billion
 Staff:
1,000,000
A changing environment
Our Members: from pure savings banks to socially
committed retail banks embodying stakeholder model
From “European Savings Banks Group” to
“ESBG- the voice of savings and retail banking”
representing efficiently operated, competitive financial
institutions, following common characteristics:


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Retail: active in providing retail financial services for
individual consumers, households, SMEs, local authorities
Regional: broad decentralised distribution network,
providing local and regional outreach = proximity bankers
Responsible: socially responsible approach to business
and bringing a return to society
Our first objective :
Interest Representation
Importance of Lobbying at European level
- 80% of legislation related to the banking sector
comes from the EU
- 3 horizontal banking associations in Brussels
- ESBG only one raising profile of ALL its
members, since

Well-defined entities represented: 3R’s

Coherent and egalitarian approach towards members

Thus, opinion of all members taken into account
(not only the one of bigger institutions)
ESBG’s long-term lobbying activities
(1/3)
 Lobbying of EU institutions on ALL financial
services related regulatory and policy initiatives
(1):
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Review of the rules on capital requirements
(Basel III, CRD IV)
Deposit Guarantee Schemes
Capital markets related issues, including MiFID
Consumer and SME Policy issues
Fight against money laundering (AML)
Payments, SEPA
ESBG’s long-term lobbying activities
(2/3)
 Lobbying of EU institutions on ALL financial
services related regulatory and policy initiatives
(2):
Delivering long term perspective (for
instance for internal studies) combined with
concrete responses to consultations (joint
position papers)
 Monitoring and real time information on key
developments
 Use ESBG as a platform for exchanges of
views and experiences between Members

ESBG’s long-term lobbying activities
(3/3)
OUR OBJECTIVES:
-
Promote Pluralism of the European banking
industry
-
Advocate for the recognition of sustainable and
responsible banking
-
-
Principle of subsidiarity: Create an EU framework
for retail financial services respectful of
national specificities and market practices
Proportionality
Level playing field:Level regulatory playing
field: « same business, same risks, same rules »
ESBG’s current lobbying files
(1/6)
Basel III:
Our members’ concerns:
Stronger capital framework: stricter definition of capital; tackling
pro-cyclicality; introduction of leverage ratio; address counterparty
credit risk
Our response:
Urging global regulators to take specificities of non-joint stock
companies and retail banking structures into account when
transposing the Basel III framework into EU legislation;
Pointing at cumulative effects of the regulation on smaller,
decentralised financial institutions, which support the real economy
Constant lobbying in front of Basel Committee, Commission and
European Parliament, which is our closest ally in this respect
ESBG’s current lobbying files
(2/6)
Deposit Guarantee Schemes (1)
ESBG advocates for:
- Decreasing the target level of the fund (the total
target level should be 1% instead of 2%)
- Target level: reference should be made to
covered deposits, i.e. the eligible deposits not
exceeding the coverage level (instead of eligible
deposits, i.e. deposits that are not excluded from
protection)
- In a first step limiting the payout on the
nominal value, pay out interests in a second step
ESBG’s current lobbying files
(3/6)
Deposit Guarantee Schemes (2)
ESBG advocates for:
- Eliminating the possibility of cross-border
borrowing mechanism between the schemes
- Introducing longer transition periods (the
different deadline, the shortest being December
2012, should all be prolonged to ensure smooth
transition and avoid an excessive burden)
ESBG’s current lobbying files
(4/6)
Deposit Guarantee Schemes (3)
ESBG is opposed to:
- Questioning of mutual and voluntary schemes
(these schemes function well and provide safety
and reliability in addition to the classical function of
payout of Deposit Guarantee Schemes)
- Discontinuing the possibility of set-off (instead
this practice should be continued as a national
discretion)
- Shortening the payout delay to 7 days (instead it
should be kept at 21 working days, which is already
ambitious)
ESBG’s current lobbying files
(5/6)
Debate on harmonisation of rules on responsible
mortgage lending and borrowing at EU level
Commission’s aim: Limit focus to EU mortgage
credit, in particular the pre-contractual stage of
mortgage credit (including obligation to assess
creditworthiness and suitability) and regulation of
credit-intermediaries
ESBG is opposed to EU mortgage credit
regulation due to local nature of market and
demand = continues to pursue lobbying activities
in European Commission and Parliament
ESBG’s current lobbying files
(6/6)
Other ESBG current key topics:
Bank fees
Commission preference for standardised
sheet for presentation of bank fees
ESBG approach: potential self-regulation
with EBIC and considering the implications of
different regulatory avenues
International and EU level discussions on
bank levies and taxes (set-up of Task Force)
Main concern: risk of over-regulation
WSBI’s lobbying activities
Challenges at international level focuses on:
ACCESS to FINANCE
&
Fight for FINANCIAL INCLUSION
 In this context, promotion and constant support of members’
financial inclusion activities all around the world;
 Recognition by Bill and Melinda Gates Foundation, which
granting multi-million USD project for WSBI members in 10
countries to double the number of savings accounts for the
poor
ESBG/WSBI
OUR response to the challenges
CONSTANCE “STANDHAFTIGKEIT”
in:
 Values: responsible banking, relationship
oriented vs. transaction oriented banking
 Banking Model: regional, responsible, retail
benefiting the real economy
• Message: Importance of Proportionality; Risk of
cumulative effects of regulatory proposals
on our members, especially on their
lending capacity and their constant
support to the real economy
= The crisis is an opportunity, due to the overall
recognition of the advantages of our members’
banking model