The European Commission (Commission) has published a speech by Vice President Valdis Dombrovskis, European Commissioner for Financial Stability, Financial Services and Capital Markets Union (CMU) providing an overview of the timings of pending Commission initiatives relating to financial services. Mr Dombrovskis discusses the following three key objectives:

  • completing Banking Union. Mr Dombrovskis mentions the Commission October communication that put forward ideas to help co-legislators reach agreement on the legislative proposals for a European Deposit Insurance Scheme. He also mentions that in the spring the Commission will produce a package of measures designed to accelerate the trend of reducing non–performing loans. The Commission is also looking into “pragmatic solutions” that are intended to help banks diversify their holdings of sovereign bonds. In this context, the Commission is closely following the work of the European Systemic Risk Board on sovereign bond backed securities;
  • accelerating the building of Capital Markets Union. Mr Dombrovskis states that in early 2018, the Commission will come forward with a proposal for an EU framework for covered bonds; and
  • embracing new forms of finance, including fintech and sustainable finance. Mr Dombrovskis states that the Commission is taking steps to boost digital payments in Europe and in the coming days it will present standards to guide the implementation of the revised Payment Services Directive. To strengthen the security of online payments, the Commission is making two-factor authentication the norm for payments above a certain threshold.

View European Commission announces timings for payment reform, 21 November 2017