We acknowledge the significant efforts and investment that member countries, industry and taxpayers have made in contributing to the current Pillar 1 framework. We welcome an approach that is both simple and effective for applying Pillar 1. Banks have a taxable, physical presence in places where they operate regulated business. Therefore, they should be outside the scope of Pillar 1 . Moreover, metrics such as balance sheet or gross revenues do not consider the extremely high capital costs associated with running regulated banks compared with other industries (such as technology and consumer goods companies). We believe that the application of a “worldwide” basis of taxation is a robust equivalent of the Income… Read More
Continue ReadingIBFed memo on Retail Central Bank Digital Currencies and Global Stable Coins
IBFed shares its views on Retail Central Bank Digital Currencies and Global Stable Coins. We assess how the creation of digital currencies could potentially support the digitalization of the economy. We also discuss the role of central banks, commercial banks and other private actors in this journey, the advantages and disadvantages of different scenarios. Last but not least, we address the potential effects to the banking business model and to consumer and commercial customers. To learn more, click here: CBDC-GSC-memo_18-June-2021 (2)
Continue ReadingIBFed Letter to the BCBS on BigTech & Banking
Further to the presentation of their report on BigTech and Banking to the Basel Committee on Banking Supervision, the IBFed wrote to the Committee on 6 January 2021, to illustrate how the unbundling of financial services and the activities of BigTechs can potentially create prudential or systemic risks that need to be addressed. IBFed Letter to Carolyn Rogers 6 Jan 2021
Continue ReadingIBFed feedback to the IFRS Foundation on the Sustainability Reporting Consultation Paper
The IBFed supports the IFRS Foundation in their efforts to contribute to the development and maintenance of a global set of sustainability reporting standards. The Banking industry strongly supports efforts to establish a generally accepted international framework for sustainability reporting in order to promote consistency and comparability across organizations and reduce the potential for global fragmentation. IBFed Letter to IFRS_24 December 2020
Continue ReadingComments on the FATF questionnaire on digital transformation
The IBFed’s comments to the Financial Action Task Force (FATF) focus on legal and regulatory barriers to the use of emerging technology for sharing information between regulated banking firms for AML / CFT purposes. Financial crime information sharing is restricted in many different markets by a misalignment of AML / CFT intelligence needs and data privacy requirements. We recommend that FATF work with partners to establish international policy roundtables to bring together national, regional and international authorities on AML/CFT and data protection with the private sector. IBFed to FATF_Digital Transformation_7 Dec 2020
Continue Reading