On 6 June 2019 the Governing Council approved key parameters of the third series of targeted longer-term refinancing operations (TLTRO III). These operations, announced on 7 March 2019 and to start in September 2019 and end in March 2021, with a maturity of two years each, will apply an interest rate for each operation set at 10 basis points above the average rate applied to the Eurosystem’s main refinancing operations (MROs) over the life of the respective TLTRO. The rate applied to TLTRO III operations will be lower for counterparties whose eligible net lending between the end of March 2019 and the end of March 2021 exceeds their benchmark net lending. More detailed information on these technical parameters can be found in a related press release available on the ECB’s website.
The European Union is seeking ways to strengthen the role of the euro and bolster its global relevance. As part of this, the European Commission is looking at the development of EU-wide instant payments, which will help increase the autonomy of payment solutions in Europe and challenge the dominance of American and Asian apps and cards that Europeans use for their cross-border payments.
LBChain is the world’s first blockchain-based sandbox developed by a financial market regulator, the Bank of Lithuania. The platform was developed through a pre-commercial procurement and is now opening up to international start-ups as well as financial and FinTech companies to test their solutions on the LBChain. The project combines the creation of innovative blockchain-based solutions with supporting their application in the financial sector as well as improving the quality regulatory requirements and attracting foreign direct investment.
The entry of large technology firms (“big techs”) such as Alibaba, Amazon, Facebook, Google and Tencent into financial services, including payments, savings and credit, could make the sector more efficient and increase access to these services, but also introduces new risks, the Bank for International Settlements (BIS) writes in its Annual Economic Report.
The European Banking Authority adopted an opinion on the elements of strong customer authentication under the second payment services directive (PSD2). PSD2 granted the European Banking Authority a number of mandates to develop draft regulatory technical standards (RTS), including the RTS on strong customer authentication and common and secure communication, which the Commission adopted on 27 November 2017 (Commission Delegated Regulation (EU) 2018/389).
Speech by Sabine Lautenschläger, Member of the Executive Board of the ECB, at the European Association of Co-operative Banks, Berlin, 14 June 2019.