Safe Bank

Deposit guarantee schemes constitute an important but relatively new element of the financial safety net. Prior to the Global Financial Crisis deposit guarantee schemes in the European Union acted mainly as payboxes with their mandate mostly limited to payout of covered deposits. The crisis experience unveiled many weaknesses in the area of deposit insurance and prompted European lawmakers not only to increase the level of harmonization of regulations in this respect but also to extend the mandate of deposit guarantee schemes. The aim of this article is to present and analyze the evolution of financial regulation related to deposit insurers in the European Union, taking into account their role in crisis management, in particular as regards interventions other than payout. An important part of the article is focused on the critical assessment of the new proposal put forward in 2023 by the European Commission to reform the crisis management and deposit insurance framework (CMDI). The article discusses the potential positive effects of the proposed changes under the CMDI reform as well as possible difficulties and challenges related to their introduction. Results of the analysis indicate that the proposed reform would strengthen deposit guarantee schemes giving them a more prominent role in crisis management. Nevertheless, this new broadened mandate might require strengthening financial capacity of deposit guarantee funds.

The digital revolution brought new factors that influenced the traditional banking market. Banks were forced to compete not only with other players from the banking sector but also with FinTech companies. Therefore, the aim of this paper is to investigate the impact of digital financial technology (FinTech) on traditional banking and finally on banking performance in EU, at the new conditions of competition on the financial market. This paper consists of a qualitative and quantitative assessment. In the theoretical part this paper confirms the big role of FinTech companies in shaping new financial market. Finally, the quantitative investigation confirms that new technology had an impact on traditional bank performance. Furthermore, new players have changed the conditions of competition in the financial market.

COVID-19, which has spread rapidly around the world after this date, was officially detected in Turkey in March 2020. As in the rest of the world, many sectors in Turkey were negatively affected by the pandemic. One of the sectors most affected by the COVID-19 pandemic was the banking sector. Therefore, the Central Bank of the Republic of Turkey, the Banking Regulation and Supervision Agency, the Banks Association of Turkey and banks quickly published measures. The banking system was redesigned with masks, social distance and hygiene principles. New working order and financial products were created for the pandemic. "Sustainability Guidelines for the Banking Sector" announced by the Banks Association of Turkey is a guide for banks in Turkey. These principles, consisting of ten articles, create a framework for sustainable banking in Turkey. The purpose of this study is to determine how related the measures taken during the Covid-19 pandemic are to sustainable banking principles. To that end in this study, measures taken in compliance with COVID-19 regulations and sustainable banking principles were identified. Adaptive principles are grouped under common headings. The measures taken, the issues of "resilience and adaptability" and "economic recovery and resilience" came to the fore the most. Since there is no similar study in the literature, it is thought that it will guide regulatory authorities and academic studies.

The aim of the paper is to assess the performance of active sustainable investing in the U.S. particularly in the context of the rising anti-ESG movement. The paper presents the author's concept: The Seven Tribes of Sustainable Investing, which include: 1) negative screening, 2) positive/best in class, 3) impact, 4) thematic, 5) ESG integration, 6) shareholder engagement and 7) minimum standards, which have differing financial outcomes and impacts. The development and the roots of the anti-ESG movement are also synthesized. An analysis of the returns of 10 sustainable funds shows that none of these funds significantly underperformed their benchmarks over a 10-year period. These results provide a counter-argument to the proponents of the anti-ESG movement and, in particular, contradict the claims that sustainable investments do not fulfill their fiduciary duty. Therefore, the conclusion emphasizes the validity of promoting and pursuing the ESG concept against its opponents, in the U.S. and beyond. 

[1] In 2019, for example, Morgan Stanley found that 95% of millennials had interest in sustainable investing [Morgan Stanley 2019].  In 2020, three out of four sustainable funds identified by Morningstar (investment research firm that compiles and analyzes fund, stock, and general market data) financially outperformed their category [Hale 2021].  In 2021, a majority of investors in ExxonMobil (U.S.-based oil and gas company) voted to change board members and elected at least two board candidates nominated by activist investors who pledged to steer the company toward cleaner energy and away from oil and gas.  The key to making this happen was Blackrock joining a majority of financial institutions in the so-called Climate Action 100+ which features investors managing over US$68 Trillion to pass the related shareholder resolution [Climate Action 100+ 2021].

[2] As COVID’s first major waves led many to work from home in 2020 into 2021, the price of a barrel of oil was briefly negative.  In early 2021, as these trends continued, oil companies in Houston wondered what to do with their many thousands of engineers as long term investment projects no longer seemed financially viable let alone expected impacts with climate reality gave further pause to future activity and positioning, yet this all changed with the early 2022 invasion of the Ukraine by Russia, partnered with the rise of supply chain shortages leading to higher prices (especially oil and gas) and inflation.

The article characterizes the process of shaping the European Secured Notes (ESN) market, as a new pan-European capital market instrument for funding banking activities, based on the experience of the covered bonds market. ESN is particularly dedicated to lending to small and medium-sized enterprises. The characterization was structured into four thematic areas, consisting of: the importance of double-recourse instruments, the concept of the new capital market instrument, investors’ preferences and the feasibility study of the new instrument. Analyses of literature and empirical sources indicate that the ESN market has significant potential for development due to the business benefits and political support of the EU and its agencies, despite the skepticism of financial market players to date.

A well-functioning consumer credit market is important for households, economies and financial market integration. The dynamic nature of changes in the financial market, such as the digital revolution, changing consumer attitudes or the emergence of new products, makes it necessary to adapt regulations to the new conditions. Directive 2023/2225 of the European Parliament and of the Council on credit agreements for consumers and repealing Directive 2008/48/EC, published on October 18, 2023, aims to take into account new aspects and rules of functioning of the consumer credit market, ensuring a high degree of consumer protection. The aim of this article is to present the fundamental changes and new rules related to offering and granting consumer credit in the European Union, together with recommendations related to the implementation of CCD2 into the national legal system.

The key elements of any financial system are, in addition to the central bank, first and foremost: the other monetary financial institutions (represented mainly by banks, and to a much lesser extent other credit institutions and money market funds), investment and pension funds and insurance companies. While a well-functioning financial sector is a lever for growth and progress, irregularities within it can place a significant burden on it.

The Corporate and Investment Banking Congress (CIBC) is an initiative of the European Financial Congress (EFC), including speeches and discussions on financing and support for businesses by financial institutions. The 9th Edition of the CIBS was organized at the Warsaw Stock Exchange on 7 and 8 November  2023. Plenary speeches and debates in sessions were attended by dozens of practitioners and academics and there were 416 registered participants. One could hear in the content of the speeches an echo of the sentence, which was uttered almost a century ago by Maria Curie-Sklodowska "not to be defeated by either people or events",  quoted by the Chairman of the Program Council of the Congress  Mr.Jerzy Kwiecinski.

The forecasting consensus of the European Financial Congress is based on the opinions of 27 experts and prominent macroeconomists received by December 8, 2023.

In this report, we focus on measures aimed at sustainable economic development and financial stability. Therefore, we traditionally begin our report with consensus macroeconomic forecasts made by who we believe are the best macroeconomists, then we present the most significant threats to the Polish economy, the stability of the financial system and the credibility of PLN, along with the probability of their occurrence. Finally, we present recommended actions.