As financial policymakers and international standard setters are discussing international policy responses to the COVID-19, the IBFed is keen to share its comments, representing the banking industry across the world. The IBFed addressed a letter to the GHOS and the Basel Committee commenting upon targeted temporary prudential measures related to the COVID-19 crisis. IBFed Letter to GHOS and BCBS
Continue ReadingJoint letter on tax challenges due to COVID-19
COVID-19 is significantly affecting the ability of crossborder portfolio investors to access withholding tax relief they are entitled to. The IBFed has been co-signing a letter drafted under the leadership of the European Banking Federation, asking the OECD and the European Commission to promote the adoption of recommendations aiming at preventing these issues, by as many tax administrations around the world as possible. Joint letter on withholding challenges_20April2020
Continue ReadingRob Nichols elected IBFed Chairman
The International Banking Federation (IBFed) has elected American Bankers Association President and CEO Rob Nichols as its chairman for a two-year term that runs through January 2022. The IBFed is an international organization whose members include the national banking trade associations representing every major financial center. As chairman of the organization, Nichols will work with IBFed members to develop international consensus on critical issues affecting financial institutions across the globe. In full consultation with IBFed members, the chairman develops the agenda and chairs consultations that embrace the global diversity of banks and those they serve, promoting industry unity on efforts to expand services to meet evolving customer needs, promote coordinated standards of prudential supervision and… Read More
Continue ReadingFATF guidance for the use of Digital ID
The IBFed commented on the guidance proposed by the Financial Action Task Force (FATF), aimed at helping governments, financial institutions and other relevant entities to apply a risk-based approach to the use of digital ID for customer due diligence. In the letter we explain that consistency with global standards is important; financial entities should not be solely responsible for assessing the assurance level of the digital ID systems. We recommend to include reference to market resilience considerations and we advocate for a balance between the AML/CFT requirements and financial inclusion objectives. Finally, we would support inclusion of wider AML/CTF use cases than identification and authentication of natural persons. IBFed letter to… Read More
Continue ReadingOECD Global Anti-Base Erosion Proposal under Pillar two
The OECD published a “Global Anti-Base Erosion” set of rules aimed at avoiding profits to be shifted to jurisdictions where they are subject to no or very low taxation. In our response we state that banks are taxed in the appropriate jurisdictions based on where they have a regulated, taxable presence. Although we do not have any significant objections to the principles set out in the Pillar 2 consultation, we make 3 recommendations as we want to avoid unnecessary additional burden for banks. IBFed letter to OECD_Digital Taxation_2 December 2019
Continue ReadingOECD Proposed Unified Approach under Pillar One
The OECD published proposals for a “Unified Approach”, with a profit allocation for digitised businesses. Consistent with our previous exchanges and submissions we plead for a carve out of regulated banking services. IBFed letter to OECD_Digital Taxation_11 November 2019
Continue ReadingThe proposed amendments to the IFRS Foundation Due Process Handbook
In our letter we comment upon the Effects Analysis IASB consultation regarding “IFRS exposure draft amending its Dues Process Handbook“. We believe our response to the IFRS exposure draft could set a benchmark for both IFRS and FASB as to how “Effects Analyses” should address bank-specific concerns. In addition, it includes a discussion related to expanding the IFRS Foundation’s standard due process to their “Agenda Decisions”, which are interpretations of existing standards. While subject to IASB approval, these Agenda Decisions can often change bank accounting practice and, therefore, should be subject to a robust review process. IBFed Comments IFRS Due Process Effects Analysis_25 July 2019
Continue ReadingThreats to Financial Stability resulting from widespread ring-fencing
Many jurisdictions around the world are now finalizing implementation of the post crisis regulatory reforms agreed to by the G20 nations. The IBFed notes its concern that there are a growing number of instances where jurisdictions are introducing variations of the agreed reforms intended to protect their own jurisdiction, for example by ring-fencing. Such variations are drivers of market fragmentation, undermine the international cooperation of the last decade and inhibit the full, timely and consistent implementation of the post-crisis international agreements reached by G20 standard setting bodies. We support the FSB’s drafting of a report on market fragmentation which will be delivered to G20 this June. The report could be… Read More
Continue ReadingAddressing the Tax Challenges of the Digitisation of the Economy
We welcome the opportunity to provide input as part of the OECD’s consultation set out in the public consultation document “Addressing the Tax Challenges of the Digitalisation of The Economy – 13 February – 6 March 2019”. Euro In our letters we refer to our paper dated 25 September 2018 setting out some of the concerns of the International Banking Federation (IBFed) in relation to the taxation of global banks, and how banks differ from highly digitalised businesses which featured as the primary focus of the OECD’s interim report in March 2018. We explain further how banks generally have a regulated / licences presence in the jurisdictions in which they operate… Read More
Continue ReadingRevisions to Basel 3 and the treatment of securities financing transactions
IBFed letter to BCBS on capital treatment of SFTs_11jan19 The IBFed appreciates the Basel Committee on Banking Supervision (BCBS) efforts to revise the Basel 3 standards. The International Banking Federation (IBFed) has submitted numerous letters to the BCBS discussing various Basel 3 revisions and making recommendations for practical, and objective-focused ways those standards can be adopted. We anticipate that as domestic jurisdictions begin adopting the latest round of finalized standards, issues that were not previously anticipated or fully appreciated will present themselves. This letter addresses one of these specific issues, the minimum haircut floors for Securities Financing Transactions (SFTs), about which we have not previously commented.
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