The Eurofi High Level Seminar 2018 Sofia | 25, 26 & 27 April
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Views The EUROFI Magazine SOFIA APRIL 2018 Vladislav Goranov Challenges in financial services area are also opportunities The Eurofi High Level Seminar 2018 Sofia | 25, 26 & 27 April Valdis Dombrovskis Danièle Nouy EMU, Banking Union, Building a strong and CMU - time to accelerate even foundation for the Banking Union And more than 165 speakers’ contributions including: V. Šapoka, J. Van Overtveldt, D. Radev, L. Linde, V. Vasiliauskas, B. Vujčić, E. Tsakalotos, V. La Via, S. Shirakawa, R. Behnam, B. Quintenz, L. Pereira da Silva, J. Dixon, P. Heilbronn, F. Restoy, R. Gualtieri, M. Ferber, Y. Mersch, A. Dombret, E. König, S. Lautenschläger, S. Maijoor, A. Enria, G. Bernardino, M. Petrova, K. Braddick, O. Guersent, M. Buti, D. Calleja, L. Holle, D. Beau, S. Goulard, J. Wuermeling, H. Waiglein, F. Hufeld, K. Karainova, I. Koske, B. Thompson, A. Magasiner, P. Bordenave, J. Brunel, L. Ahto, V. Grilli, A. Hachmeister, C. Ellis, L. Hampartzoumian, J. Taylor… The Eurofi Sofia Seminar mobile website sofia2018.eurofi.net Answer polls Post questions during the sessions Check-out the list of speakers and contact attendees Detailed programme and logistics information The Eurofi High Level Seminar SOFIA | APRIL 2018 Content EDITORIALS & OPENING INTERVIEWS I. MACRO-ECONOMIC AND EU INTEGRATION CHALLENGES Deepening the EMU ................................................................................................................................................................................ 20 Forthcoming unwinding of QE ............................................................................................................................................................. 22 Fostering private risk sharing ................................................................................................................................................................ 30 Are public and private debts sustainable? ........................................................................................................................................ 40 Review of the operation of the ESAs .................................................................................................................................................. 44 Developing financial markets in South East Europe ...................................................................................................................... 48 II. GLOBAL COORDINATION & BREXIT IMPACTS Future of global regulatory and supervisory coordination .......................................................................................................... 54 Brexit way forward .................................................................................................................................................................................. 60 Impact of Brexit on EU priorities .......................................................................................................................................................... 68 III. CMU IMPLEMENTATION AND SUSTAINABLE FINANCE Further reducing fragmentation in the CMU .................................................................................................................................... 74 Priorities for developing sustainable finance .................................................................................................................................. 80 EU green finance framework ............................................................................................................................................................... 86 Developing fund cross-border distribution ..................................................................................................................................... 92 Index investing ......................................................................................................................................................................................... 98 Developing equity investment ......................................................................................................................................................... 104 Regional and SME market ecosystems ............................................................................................................................................ 110 Impact of bank prudential rules ........................................................................................................................................................ 116 Insurance groups in the CMU context ............................................................................................................................................. 122 IV. REDUCING FRAGMENTATION IN EU FINANCIAL MARKETS Addressing fragmentation issues in the Banking Union ........................................................................................................... 130 EDIS and SRF backstop : expected benefits and success factors ........................................................................................... 138 Resolution and liquidation of EU banking groups ..................................................................................................................... 144 Priorities for further integrating EU post-trading ....................................................................................................................... 152 MiFID II implementation .................................................................................................................................................................... 158 V. FINTECH AND DIGITALISATION Impact on business models and value chains ............................................................................................................................ 166 Fintech in the CMU ............................................................................................................................................................................. 174 Digital payments ................................................................................................................................................................................. 180 Cybersecurity challenges ................................................................................................................................................................. 186 GDPR impacts ...................................................................................................................................................................................... 192 VI. IMPROVING FINANCIAL STABILITY Vulnerabilities in global and EU financial markets .................................................................................................................... 198 Supervision of EU and third-country CCPs ................................................................................................................................. 204 Vulnerabilities from asset management activities ...................................................................................................................... 212 Insurance systemic risk framework ................................................................................................................................................ 216 The Eurofi Sofia High Level Seminar Over 700 representatives of the European and international public authorities and of the financial industry are gathered in Sofia to discuss key policy issues impacting the financial sector, the macro-economic environment, new trends such as technology and sustainable finance and also the potential impacts of Brexit and of changes in global regulatory coordination and how the EU may react to them. All these changes are both challenges and opportunities to review the overall financial services objectives of the EU27 and define how key policy initiatives such as the Banking Union and Capital Markets Union may be adjusted or completed to increase the competitiveness and integration of the EU27 financial sector. One key subject of discussion during this Sofia Seminar will be how to further integrate the EU banking sector, which would require a recognition of banking groups in EU legislation and a removal of the current national approach to bank prudential and resolution regulation in the Banking Union. Most of the 200 speakers taking part in the Eurofi Sofia High Level Seminar have expressed their views in this Magazine, providing a comprehensive overview of thoughts and proposals on these issues. We thank them very warmly for their thoughtful contributions and hope that you will read them with great interest. Didier Cahen, Marc Truchet and Jean-Marie Andrès, EUROFI 8 EDITORIAL David Wright President, EUROFI The EU facing multiple crossroads - decisive leadership needed This is the first time EUROFI is holding one of its half-yearly seminars in Bulgaria. We are truly delighted to be in Sofia and on behalf of all EUROFI members and delegates we thank the Bulgarian Presidency of the European Union for their very friendly and hospitable welcome and all their valuable support. We are certain of yet another large turnout of many of the EU’s top financial experts from both the public and private sectors from all over Europe and we warmly welcome again speakers and participants from outside the EU which is a growing feature of our meetings. Commentators often speak of the EU being at the crossroads. Which way to turn? Which policies to prioritize?