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 ReadingResponse to the OECD Public consultation on Tax challenges arising from Digitisation
The IBFed has responded to the OECD with comments on the design of Pillar II Blueprint. Global banks seek clear and simple rules that are easy to implement and produce a fair outcome for all multinationals. As the proposals in the Pillar II Blueprint are complex, we welcome the proposals to simplify the approach and offer comments as well as suggestions for achieving simplification. IBFed OECD PII submission_14 Dec 2020
Continue ReadingResponse to the BCBS on proposed Revisions to the Principles for Operational Risk management
The IBFed has responded to the Basel Committee on Banking Supervision’s proposed revisions to the principles for effective management of operational risk. These revisions have been proposed by the BCBS in the light of banks’ further reliance on outsourced technology and more pervasive cyber threats. The IBFed supports the proposals made, with a few comments on some of the principles. We welcome the recognition that banks should adopt a proportionate approach to operational risk management, taking into account the nature, size, complexity and risk profile of their activities. IBFed@BCBS_Operational Risk_18 dec 2020
Continue ReadingNew Chairman for the Media and Reputation Working Group
The IBFed is pleased to welcome Mr Bart Van Leeuwen, the director Communication at the Dutch Banking Association, as its new Chairman for the Media and Reputation Working Group. The IBFed is glad to have Mr Bart Van Leeuwen on board!
Continue ReadingNew Board Members Announcement
The IBFed is pleased to announce and welcome newly appointed Board directors and Board members. Dr Christian Ossig is Chief Executive at the Association of German Banks, Chair of the European Banking Federation executive Committee, and from January 2020 director of the IBFed Board. “In a world with globalized financial markets, a return to national structures rarely serves as an adequate response to global challenges. Stability and growth require open markets and, more than ever, international cooperation. As Chair of the EBF Executive Committee and new member of the IBFed Board, I am very much looking forward to cooperating closely with my international colleagues on issues of global financial market… Read More
Continue ReadingJoint Letter to the OECD on tax challenges due to COVID-19
The IBFed has co-signed a second letter with major trade associations, addressed to the OECD and the European Commission, on the tax challenges due to COVID-19. The letter provides 6 concrete examples to illustrate the difficulty posed by authorities still requiring physical documents related to withholding taxes, while this is not possible or extremely complicated in the COVID-19 context. Joint letter OECD WHT challenges_3 Sep 2020
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