Latest news with #FrankElderson
Bloomberg
a day ago
- Business
- Bloomberg
Europe Must Defend Rule of Law Standards, ECB's Elderson Says
Europe can foster economic well-being and help increase the euro's global role by adhering to and even strengthening rule of law standards, European Central Bank Executive Board member Frank Elderson said. The European Union is 'a beacon of legal certainty, strong institutions and the protection of fundamental rights,' he said Monday in a speech at the Italian Constitutional Court in Rome, emphasizing that the connection between this principle and a thriving economy is 'well established.'
See - Sada Elbalad
23-05-2025
- Business
- See - Sada Elbalad
ECB Warns of €3 Trillion Economic Risk to Eurozone from Worsening Droughts
Israa Farhan The European Central Bank (ECB) has issued a stark warning that intensifying droughts across Europe could cost the Eurozone economies up to €3 trillion, threatening as much as 15% of regional GDP through long-term climate-related disruptions. A new ECB study highlights that €1.3 trillion in outstanding loans are currently exposed to sectors most vulnerable to water scarcity, including agriculture, manufacturing, mining, and construction. These findings underscore growing concerns about the financial risks linked to environmental degradation and climate change. According to the Financial Times, the ECB's latest climate risk analysis places strong emphasis on how droughts and water stress could destabilize economic productivity and financial stability. The warning comes amid growing political resistance to green policies and pressure from US officials urging a softer stance on environmental regulation. ECB Executive Board member Frank Elderson, one of the institution's most vocal advocates for integrating climate risk into financial oversight, stated on Thursday that water scarcity, declining water quality, and flood protection have emerged as some of the most urgent value-impacting threats across the Eurozone. He cited a dramatic example from the Netherlands' iconic tulip-growing region, Bollenstreek, which has become nearly unfit for cultivation due to repeated drought events. Elderson warned that spring 2025 could become the driest season on record for the Netherlands, surpassing levels not seen in nearly 50 years. Joint research by the ECB and Oxford University indicates that agriculture faces the highest risk from water shortages, with over 30% of agricultural output in southern Europe at risk. In comparison, northern countries like Finland see reduced exposure, estimated at 12%. A forthcoming ECB blog post further warns that water stress can ripple through the economy, affecting multiple sectors. Drier soils lead to smaller crop yields, manufacturing operations face interruptions and rising costs, and falling river levels reduce hydropower generation and inland water transport capacity. This research aligns with rising global awareness of the economic risks posed by biodiversity loss and natural resource depletion. A separate study by economists at Allianz, the German insurance group, noted that between 10% and 13% of GDP in the US, EU, and Japan is generated by sectors heavily dependent on ecosystem services such as clean water, fertile soil, crop pollination, and climate regulation. Allianz warned that degradation of natural systems could shrink global GDP by 2.3%, with soil erosion alone posing significant economic consequences. The Financial Times notes that debate continues to intensify over how far central banks should go in tackling climate risks within financial systems. This issue has gained further traction since Donald Trump's return to the White House and the US Federal Reserve's exit from the Network for Greening the Financial System (NGFS), which coordinates global climate-related financial policies. In the US, leading financial regulators have urged the Basel Committee on Banking Supervision to downgrade its climate risk initiatives and shift disclosure rules from mandatory to voluntary. Meanwhile, Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, reaffirmed in comments to the Financial Times that central banks must stay the course on climate risk management, regardless of political turbulence surrounding net-zero emissions in the UK. read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News Egypt confirms denial of airspace access to US B-52 bombers News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies
Bloomberg
22-05-2025
- Business
- Bloomberg
ECB Says Water Is Top Nature-Related Risk to European Economy
Water has emerged as the single biggest nature-related risk to euro area economy, according to the European Central Bank and researchers at the University of Oxford. Surface water scarcity alone puts almost 15% of the euro area's economic output at risk, Frank Elderson, a member of the ECB's Executive Board, said on Thursday. Agriculture is the most exposed sector because it would suffer the largest proportional output losses from a decline in surface water, he said. He also pointed to risks associated with water pollution, as well as flooding.
Bloomberg
15-05-2025
- Business
- Bloomberg
ECB's Elderson Warns Against Scaling Back ESG Rules Too Much
European Central Bank Executive Board member Frank Elderson warned against excessively reducing the ESG reporting and regulatory burden on European companies. 'Reporting requirements in the European Union's sustainable-finance framework are not something 'nice to have,' but a solution to a problem: to improve the availability of reliable and comparable data,' Elderson said Thursday.
Reuters
21-03-2025
- Business
- Reuters
ECB to decide by next week on wider use of favourable capital rule, source says
FRANKFURT, March 21 (Reuters) - The European Central Bank will decide at the latest by next week whether favourable capital rules on banks' insurance holdings, known as the 'Danish Compromise', also apply when the insurance units buy an asset manager, a person close to the matter said. The decision, which follows requests from France's BNP Paribas ( opens new tab and Italy's Banco BPM ( opens new tab to use the Danish Compromise in purchases of asset managers carried out through their insurance businesses, potentially has far-reaching implications for consolidation across Europe's financial sector. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. The Danish Compromise reduces the burden for banks of owning an insurer by letting them hold capital against insurance holdings on a risk-weighted basis rather than deducting them in full from their capital. The idea is that, given the insurance sector's tight regulation, a full capital deduction is not necessary. Under a broad interpretation of the rules, the Danish Compromise could also sharply reduce the capital impact for a bank of buying an asset manager through its insurance arm. BNP Paribas' acquisition of AXA Investment Managers and Banco BPM's bid for Italian asset manager Anima Holding ( opens new tab are both relying on the ECB continuing to grant Danish Compromise status to the expanded insurance businesses. The ECB's decision is communicated to the banks in question, which can then inform markets. The ECB is also planning to publish guidelines after the individual decisions. The European Parliament a year ago approved regulation that made permanent the Danish Compromise, which was a temporary arrangement agreed in 2012 when Denmark held the European Union's rotating presidency. A regulatory clarification has indicated that the favourable treatment could apply not only to insurance businesses held by banks, but also to assets those banks buy through their insurance units. A broad interpretation of the rule could stoke further deals in Europe's financial sector, bankers have said. However, the ECB's chief supervisor, Claudia Buch, has said each application is assessed individually. This week, Frank Elderson, vice chair of the ECB's supervisory board, reiterated requests by banks to apply the Danish Compromise were processed "strictly on a case-by-case basis" and that there was no set timeline for a decision. However, he said supervisors were aware of the need for clarity. "The ECB, and I myself am acutely that questions about the Danish Compromise are very much top of the minds of many people in this room and probably many people outside of this room," he told Morgan Stanley's European Financials Conference. "I cannot speak to any specific transactions or banks," he said, adding "we are very much aware that the market and many of you would like to see clarity sooner rather than later."
