The COVID-19 crisis has extended the likely period of ultra-expansionary monetary policies, while at the same time keeping banks’ net interest margins narrow for an indefinite period of time. Credit default ratios will rise due to the COVID-19 crisis over the medium-term, thus lowering banks’ equity ratios. While dividend moratoriums prescribed by regulators in principle bolster banks’ capital, they make investment in bank equity less attractive and create a gap between the remuneration of bank equity and subordinated capital. The response to the COVID-19 crisis testifies that the post-GFC regulatory reforms were successful in bolstering banks’ capital and in reducing pro-cyclicality. At the same time, there remains room for improvement.

With the year 2020 dominated by Covid-19-related restrictions of physical interaction and an increasing relevance of technology and digital interaction for businesses and citizens,  legislative initiatives by the European Commission aim at addressing digital transformations in Europe’s economy.

The Cybersecurity Conference is the annual event on cybersecurity in the financial sector. Field experts from banks, policymakers, supervisors and the ICT security industry come together to discuss the rapidly evolving cyber trends and challenges with a specific focus on banking.

This day is devoted to the European Data Economy and Open Finance. The European Commission, through its Data Strategy, has set a goal to build a Single Market for Data in Europe. It has also made fostering a data driven financial sector one of its priorities, including a commitment to present a proposal for a new Open Finance Framework by mid-2022. These two initiatives are not mutually exclusive.