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The Savings Banks Industry in Europe and worldwide The role of ESBG/WSBI

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 :

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The Savings Banks Industry in Europe and worldwide The role of ESBG/WSBI

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  1. The Savings Banks Industry in Europe and worldwide The role of ESBG/WSBI

  2. 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

  3. ESBG in figures • 29 Members (banks and associations) from 26 European countries (incl. 20 EU countries) • Banks represented: 864 • Branches: 60,899 • Total assets: 6,061 billion • Non-bank deposits: €2,935billion • Non-bank loans: €1,685 billion • Staff: 950,000 • = 1/3 of Europe’s Retail Banking Market

  4. 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

  5. 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

  6. WSBI in Figures 110 members from 90 countries Only international retail banking organisation worldwide! Asia-Pacific: 22 Members16 countries Europe: 36 Members30 countries Africa: 37 Members 31 countries Americas: 16 Members13 countries • Institutions represented: 6000 (January 2009) • Branches: 162,000 • Total Assets: €9,000 billion • Non-Bank Deposits: €4,637 billion • Non-Bank Loans: €4,363 billion • Staff: 1,000,000

  7. 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: • 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 approachto business and bringing a return to society

  8. 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)

  9. ESBG’s long-term lobbying activities (1/3) • Lobbying of EU institutions on ALL financial services related regulatory and policy initiatives (1): • 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

  10. 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

  11. 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 »

  12. 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

  13. 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

  14. 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)

  15. 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)

  16. 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

  17. 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

  18. 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

  19. 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

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