CEPS - Centre for European Policy Studies 1 Place du Congrès / Congresplein 1000 Brussels
Data sharing has become a core component of well-functioning credit markets. For the market to remain healthy and effective under this evolution, the secure sharing of data is a prerequisite as more comprehensive and accurate data leads to better creditworthiness assessments.
CEPS - Centre for European Policy Studies 1 Place du Congrès / Congresplein 1000 Brussels
With the launch of an official digital euro, the ECB will enter into the uncharted territory of payment systems and bank accounts. This raises fundamental questions about the role of a central bank and the possible impact on the private provision of credit. It’s not out of the realm of possibility that retail client accounts with the ECB could become trigger for a new crisis. Before embarking on this ambitious endeavour, the ECB needs to stop and think twice.
Most central banks in advanced economies consider issuing central bank digital currencies (CBDCs), not only to address the declining use of cash, but also to position themselves against increased competition from Big Tech companies, cryptocurrencies, and stablecoins.
Digital currencies are a concern for regulators alike, which has resulted in the Markets in Crypto-assets Regulation (MiCAR) proposal of the European Commission to regulate cryptocurrencies and ensure investor protection.
The transformation of the retail payment services market in the EU has accelerated in recent years with the surge in electronic payments during the COVID-19 pandemic. This enhanced the importance of the legislative framework governing this market.
Governments, authorities and businesses have implemented credit moratoria, intended to offer temporary relief to borrowers impacted by COVID-19. A total of 24 EU Member States enforced either a legislative or non-legislative moratoria during this period. With the roll out of vaccines and easing of lockdown measures, when is the right time to phase out these moratoria?
Every year an estimated 2 to 5 percent of the global GDP is being laundered. So far, anti-money laundering policies have seen limited successes. Meanwhile, the breadth and means to launder money have also increased, facilitated by technological progress.
From crime and drug-trafficking-related proceeds, the mandate to stop money laundering has expanded to now include tax avoidance, terrorist financing, human trafficking, state-sponsored and corporate bribery.
Retail payments are at the forefront of the digital transformation of financial services. Changing payment-processing interfaces, the introduction of crypto-assets and more recently, new payment instruments, are all shifting the traditionally cash-dominated retail payment landscape.
CEPS - Centre for European Policy Studies 1 Place du Congrès / Congresplein 1000 Brussels
Recent bank failures have dramatically illustrated the insufficient harmonisation of deposit insurance in the EU. Memories of the run on Northern Rock (2007) or the failing Icelandic banks (2008/09) are fresh in many depositors’ minds. Designing an efficient scheme to underpin the single financial market is therefore a key policy priority.
CEPS - Centre for European Policy Studies 1 Place du Congrès / Congresplein 1000 Brussels
One major concern in the aftermath of the financial crisis is the damage caused to the businesses, in particular to the SME sector which is the most important source of growth and employment creation in the EU. The weakening of SME finances will not only be caused by bank financing shortage but also by the cash flow damage from payment delays on outstanding invoices. What can policy makers do to mitigate this problem?
The European Credit Research Institute (ECRI) is a think-tank managed by CEPS and has its own board with its own strategy. At present, its funding is based on some combination of research projects and membership fees. ECRI is supported by 11 prestigious members whose primary focus is on payments and consumer loans:
Corporate Members: ACI Worldwide, American Express, BNP Paribas Personal Finance, Cofidis, Credit Agricole SA, Finastra, Klarna, Provident Financial Group, Schufa, SIBS, VISA.
