Challenges for a Belgian financial sectorat the service of society and the economyFebelfin 21 May 2013 1
AgendaFebelfin 21 May 2013 218.00 Welcome18.15 Presentation given by Filip Dierckx, Febelfin Chairman,and Michel Vermaerke...
“Challenges for a Belgianfinancial sector at the service ofsociety and the economy”Séance-débat enfrançais à Mons le5 juin...
“Challenges for a Belgian financialsector at the service of citizens andthe economy”Febelfin 21 May 2013 4Filip Dierckx, F...
Challenges for a Belgian financial sector at theservice of society and the economyFilip Dierckx, Febelfin ChairmanMichel V...
AGENDAFebelfin 21 May 2013I. 3 fundamental tasksII. 3 success factorsIII. 4 commitmentsIV.Conclusion6Challenges for a Belg...
I. 3 fundamental tasksFebelfin 21 May 2013 7
3 fundamental tasks for a financial sector at theservice of societyFebelfin 21 May 2013Financing the economyA balanced app...
II. 3 success factorsFebelfin 21 May 2013Keywords: realism, cooperation, profitability9
What do banks need to fulfilltheir key tasks?Febelfin 21 May 2013Execution ofour missionsgoes hand inhand withRealismCoope...
Realism is neededBanks cannot takeany risksBanks must providecheap creditBanks must shrinktheir balancesheets andleverage ...
Cooperation and dialogue with public authoritiesFebelfin 21 May 2013 12A few examplesBasel III (financing of exports, LCR)...
Source : Febelfin presentation based on NBB data.Consolidated data, and, since 2006, data based on IAS / IFRS reporting.4,...
… but profitablilty is under pressure …PROFITABILITY OFBELGIANFINANCIAL SECTORPrudential initiativesStructural measuresCap...
… and insufficient profitability canimpact banking on different levelsDecrease of equity may harmboth liquidity and solven...
Febelfin 21 May 2013 16The evolution towards a sustainable and vital financialsector goes hand in hand with :3 FUNDAMENTAL...
III. 4 commitmentsFebelfin 21 May 2013 17
Financial sector commitments to societyFebelfin 21 May 2013The financial sector commits to18
Febelfin 21 May 2013 19• Financing the economy today: facts & figures• The financing capacity in the future• Alternative f...
Financing the economy todayfacts & figuresFebelfin 21 May 201320
+ 87.6billionEUREXTRA(since2007)“One EUR credit for each EUR of savings”(end 2007 – end 2012)Febelfin 21 May 2013 21
Evolution of credit supply to businessesFebelfin 21 May 2013 22HoogtepuntExtract from the 2012 Annual Report of the Nation...
Credit supply to businessesat competitive interest ratesFebelfin 21 May 2013Average weighted interest rate fornew loans23S...
Traditional credit supply under pressure…Febelfin 21 May 2013Credit demand diminishes Credit production diminishesDifficul...
Economic climate: SME equity under pressure25The degree of financial independence is the ratio between the stockholders eq...
The financing capacity in the future?- Belgian savings do not sleep- Not all deposits are the same- Limits to the financin...
Belgian savings do not sleepFebelfin 21 May 2013 27Financing of the Belgian economy by the credit institutions (million €)...
Belgian savings do not sleepFebelfin 21 May 2013-200000-150000-100000-50000050000100000Depositosurplus: private sector + o...
Not all deposits are the sameFebelfin 21 May 2013 29Deposits: volumes according to type of deposit (in million EUR)Since t...
Febelfin 21 May 2013 30Limits to the financing capacityA changing financial and economic environment may cause a standstil...
Alternative financing methodsFebelfin 21 May 201331
Financing needs of the economyLT credit supplyby banksInvestment creditLT export creditST credit supplyby banksDocumentary...
Dialogue between the sector and the publicauthorities on alternative financing methodsFebelfin 21 May 2013SME fundsVenture...
Febelfin 21 May 2013 34• Keep on supplying credit (NBB)• Economic context weighs on demand• Initiatives for alternative fi...
Febelfin 21 May 201335• 2013 is not the same as 2008• Upcoming challenges
2013 is not the same as 2008Major efforts in the field of solvency, liquidity and balancesheet reductionSource: Febelfin c...
Febelfin 21 May 2013Source:NBB (in billion EUR)Belgian banks rely more on deposits than on funding provided by the financi...
Evolution of risk-weighted assets(Source: NBB, in billion EUR)2007 2008 2009 2010 2011 Sept2012Difference(%)583.5 491.7 40...
Febelfin 21 May 2013Reduction:• Of international activities andexposure abroad• Of financing via financial marketsGrowth:•...
Brussel is not Wall StreetBelgian investment banking essential for open andexport based economyFebelfin 21 May 2013 40What...
Stricter regulation and reinforced controlat Belgian, European and international levelFebelfin 21 May 2013 41Basel III(i.a...
New regulation may pressure profitabilityFebelfin 21 May 2013 4231/12/200631/12/2012051015202530354031/12/200631/12/2012Ev...
Unintended consequencesRegulationLowprofitabilityFragilityof thebanking sectorFebelfin 21 May 2013 43
Febelfin 21 May 201344• Radically different landscape• Stricter regulation and tightening control at variouslevels• Invest...
Febelfin 21 May 201345
The service provided by the Belgian banksis multi-channel and innovativeFebelfin 21 May 2013Network of branchesand indepen...
Promotion of payments“By card, of course”Campaign with ComeosIntroduction of codelesspayments…Development of newinstrument...
Febelfin 21 May 201348• Multi-channel landscape• Broadening of the payments offer through innovation• Security a priority,...
Febelfin 21 May 201349
Banks fulfil their role in societyFebelfin 21 May 2013 50
Febelfin 21 May 201351• Updating the Codes of Conduct• Specific support• Creating a framework for responsibleinvestment, s...
V. CONCLUSIONFebelfin 21 May 201352
www.febelfin.be
Alex PuissantDebate moderated by Alex PuissantMax Jadot, Chief ExecutiveOfficer & Chairman of theExecutive Committee BNPPa...
Final round-upFebelfin 21 May 2013 55Koen Geens, Minister ofFinance
Q & AFebelfin 21 May 2013 56
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  • Invoetbaltermen: “3 – 3 – 4” opstelling
  • !!! Opgelet: dit jaar eerder rond de 4% - beduidend méér, maar te weinig voor gezonde en duurzame financiering economie (verder uit te werken)Duiding rond 4,5%:Hoe duurzaam is deze winst?Vergeet niet dat je oog moet hebben voor verplichtingen inzake versterking van eigen vermogen & winstreserveringen die in deze gebruikt worden (goed voor een 60% van die 4,5% = > 1,8% blijft over)Hierop eveneens nog roerende voorheffing betalen (in zelfde voorbeeld blijft er met roerende voorheffing ad 25% nog 1,35 over)
  • Hier kan het idee over een ander soort FTT gelanceerd worden, gebaseerd op de financial stabilitycontribution, met een weging.Bij operationele maatregelen kan ingegaan worden op de costtoincome ratio
  • Rentabilité pour leclient:Unerentabilitéinsuffisantepourraitaboutir àuneréduction des investissements,un étiolement de l’offre.Unerentabilitéinsuffisantepourraitaboutir àuneraréfaction des crédits,un renchérissement du prix des crédits,une contraction au niveau du service,unehausse du prix des produits.Rentabilité pour lepersonnel:Rentabiliténécessaire pour pouvoirrémunérer les travailleursRentabilité pour l’actionnaire:Rentabiliténécessaire pour pouvoirrémunérer les actionnaires
  • Dit vormt een kern-slide om te tonen dat de Belgische banksector zijn opdracht inzake de financiering van de Belgische economie niet heeft veronachtzaamd.
  • Watbetreftdalinggraadfinanciëleonafhankelijkheid: in het eerstedeciel (dwzvoor de allerkleinsteondernemigen) van de onderzochteKMO-populatiedaalde de graad van financiëleonafhankelijkheid maar liefst met 12,7%-punt over de voorbije 10 jaar!Watbetreftnegatiefvermogen: in 2002 bedroegdit 15,4%
  • Eventuele achtergrond - bijkomende informatie over SME Lease fund (mail Anne-Mie Ooghe):Michel, Filip,Zoals afgesproken tijdens de vergadering over het ‘SME Lease Fund’ van 21 februari jl., heeft de BLV het idee van het SME Lease Fund’ verder uitgewerkt tijdens een vergadering die gisteren heeft plaatsgevonden. Bijgaand vinden jullie de conclusies van die vergadering.Ook werd nagedacht over de boodschap die jullie m.b.t. de idee van een ‘SME Lease Fund’ zouden kunnen brengen tijdens de Febelfin persconferentie en/of de luncheon. Hieronder gaat een voorstel van boodschap. Boodschap die kan worden meegegeven in kader van Febelfin persconferentie en/of luncheonMomenteel wordt onderzocht of op het niveau van de leasingsector een SME Lease Fund kan worden opgericht met het oog op het faciliteren van de financiering van investeringen van KMO’s via leasing. De criteria voor de financieringen die zullen worden opgenomen in het Fonds zullen op die wijze worden vastgelegd dat vooral dossiers die vandaag moeilijk financierbaar zijn, dankzij de funding die wordt aangetrokken via het Fonds de nodige financiering zullen vinden. Op die manier kan een boost worden gegeven aan de Belgische economie.De doelstelling is om een Fonds te creëren ten bedrage van circa 300 miljoen EUR. Vooral investeringen op lange termijn (meer dan 7 jaar) en innovatieve investeringen zouden via het Fonds worden gefinancierd.’
  • Dalend vertrouwen & mindere groei voorbije jaren bepalend voor aangroei spaardeposito’s
  • Gezien dan Belgische fin instellingen de economie financierenOpletten omdat groeiscenario (en dus toename van de vraag) druk op spaardeposito’s kan leggenNadenken over de fiscale regimes: elke ingreep heeft zeker ook een impact die dus ingecalculeerd moet wordenBegrijpen inherente zwakte in het belang dat spaardeposito’s spelen bij financiering Belgische financiële sectorSpaardeposito’s vs LT financiering moeilijk evenwicht
  • Corporate bond emissions 2012 7,693 mia (2011 2,308 / 2010 2,266 / 2009 7,211 / 2008 0,798 / 2007 0,144)
  • Eventuele achtergrond - bijkomende informatie over SME Lease fund (mail Anne-Mie Ooghe):Michel, Filip,Zoals afgesproken tijdens de vergadering over het ‘SME Lease Fund’ van 21 februari jl., heeft de BLV het idee van het SME Lease Fund’ verder uitgewerkt tijdens een vergadering die gisteren heeft plaatsgevonden. Bijgaand vinden jullie de conclusies van die vergadering.Ook werd nagedacht over de boodschap die jullie m.b.t. de idee van een ‘SME Lease Fund’ zouden kunnen brengen tijdens de Febelfin persconferentie en/of de luncheon. Hieronder gaat een voorstel van boodschap. Boodschap die kan worden meegegeven in kader van Febelfin persconferentie en/of luncheonMomenteel wordt onderzocht of op het niveau van de leasingsector een SME Lease Fund kan worden opgericht met het oog op het faciliteren van de financiering van investeringen van KMO’s via leasing. De criteria voor de financieringen die zullen worden opgenomen in het Fonds zullen op die wijze worden vastgelegd dat vooral dossiers die vandaag moeilijk financierbaar zijn, dankzij de funding die wordt aangetrokken via het Fonds de nodige financiering zullen vinden. Op die manier kan een boost worden gegeven aan de Belgische economie.De doelstelling is om een Fonds te creëren ten bedrage van circa 300 miljoen EUR. Vooral investeringen op lange termijn (meer dan 7 jaar) en innovatieve investeringen zouden via het Fonds worden gefinancierd.’
  • Zie hierover ook de NBB in haar jaarverslag (quote geciteerd op slide 20):“In Belgiëzetten de kredietinstellingen de sedert het uitbreken van de financiële crisis begonnenherstructurering van hunbalansvoort. In 2012 verminderdenze met name hunvorderingen op de periferelanden van het eurogebied. Terzelfdertijdspitstenzezichopnieuw toe op hunintermediatieactiviteiten in België en op hunstrategischemarkten: de bij de retailcliëntenaangretrokkendeposito’snamen toe en de octroi de créditbleef over het geheelgenomengehandhaafd. “
  • We zijn op de goede weg, maar opletten dat nieuwe regelgeving de klok niet terugdraaien.
  • Evolutie proprietarytrading 13% => 2%Evolutie trading 20% => 10%
  • Nood aan duidelijke regels & rechtszekerheid
  • May necessitate:AdditionalcostsavingsUpwardspressure on credit priceRepricing funds entrustedImpact on real economy => is further structural reform desirable and effective?
  • Veranderdlandschap: hard gewerktaansolvabiliteit, liquiditeit risicoprofiel is forsverminderdNieuwregelgeving & toezicht arsenaalomrisicoprofieltebeperken is aanwezig
  • Challenges for a belgian financial sector at the service of citizens and the economy final version

    1. 1. Challenges for a Belgian financial sectorat the service of society and the economyFebelfin 21 May 2013 1
    2. 2. AgendaFebelfin 21 May 2013 218.00 Welcome18.15 Presentation given by Filip Dierckx, Febelfin Chairman,and Michel Vermaerke, Chief Executive Officer of Febelfin18.45 Panel debate19.45 Q & A20.00 Reception
    3. 3. “Challenges for a Belgianfinancial sector at the service ofsociety and the economy”Séance-débat enfrançais à Mons le5 juinDebate in English inBrussels on 21 MayNederlandstaligedebatsessie teGent op 29 meiNederlandstaligedebatsessie teAntwerpen op 27meiSéance-débat enfrançais à Namur le29 avrilFebelfin 21 May 2013 3Welcome !
    4. 4. “Challenges for a Belgian financialsector at the service of citizens andthe economy”Febelfin 21 May 2013 4Filip Dierckx, FebelfinChairmanMichel Vermaerke,Chief ExecutiveOfficer of Febelfin
    5. 5. Challenges for a Belgian financial sector at theservice of society and the economyFilip Dierckx, Febelfin ChairmanMichel Vermaerke, Chief Executive Officer of FebelfinFebelfin 21 May 2013- Financing of the economy- Sustainable solutions for a different use of deposits in the contextof structural banking sector reforms
    6. 6. AGENDAFebelfin 21 May 2013I. 3 fundamental tasksII. 3 success factorsIII. 4 commitmentsIV.Conclusion6Challenges for a Belgian financial sectorat the service of society and the economy
    7. 7. I. 3 fundamental tasksFebelfin 21 May 2013 7
    8. 8. 3 fundamental tasks for a financial sector at theservice of societyFebelfin 21 May 2013Financing the economyA balanced approachto saving and investingOrganising a modernand efficient financialinfrastructureWHICH TASKS?8Within the boundaries of a balanced regulation, efficientsupervision and a competitive market
    9. 9. II. 3 success factorsFebelfin 21 May 2013Keywords: realism, cooperation, profitability9
    10. 10. What do banks need to fulfilltheir key tasks?Febelfin 21 May 2013Execution ofour missionsgoes hand inhand withRealismCooperationand dialoguewithauthoritiesA sufficientlevel ofprofitability10
    11. 11. Realism is neededBanks cannot takeany risksBanks must providecheap creditBanks must shrinktheir balancesheets andleverage Banks need to supplymore creditBanks need toattract long termfundingLT funding willbecome moreexpensive as a resultof Basel III and bail-inBanks shouldn’t becomplexinstitutions Banks operate incomplex globalisedmarkets11Banks need toboost interest rateson savingsaccounts Banks must keep onproviding cheap creditFebelfin 21 May 2013
    12. 12. Cooperation and dialogue with public authoritiesFebelfin 21 May 2013 12A few examplesBasel III (financing of exports, LCR)Moratorium on complex investmentproductsCovered BondsSupporting projectFord Genk & ArcelorMittalBanking plan /Roundtable SME financing
    13. 13. Source : Febelfin presentation based on NBB data.Consolidated data, and, since 2006, data based on IAS / IFRS reporting.4,50,710,5-2,6-36,513,222,418,515,813,611,813,720,4-40 -30 -20 -10 0 10 20 30Jan-Sept 20122011201020072006200520042003200220012000ROE20082009Febelfin 21 May 2013A sustainable level of profitability is essential…13
    14. 14. … but profitablilty is under pressure …PROFITABILITY OFBELGIANFINANCIAL SECTORPrudential initiativesStructural measuresCapital requirementsProtection ofconsumers14EconomicenvironmentCost of capitalFebelfin 21 May 2013TaxationPrudential initiativesOperationalmeasures
    15. 15. … and insufficient profitability canimpact banking on different levelsDecrease of equity may harmboth liquidity and solvencyLess solid financial system15Febelfin 21 May 2013
    16. 16. Febelfin 21 May 2013 16The evolution towards a sustainable and vital financialsector goes hand in hand with :3 FUNDAMENTAL TASKS3 SUCCESS FACTORS4 COMMITMENTS
    17. 17. III. 4 commitmentsFebelfin 21 May 2013 17
    18. 18. Financial sector commitments to societyFebelfin 21 May 2013The financial sector commits to18
    19. 19. Febelfin 21 May 2013 19• Financing the economy today: facts & figures• The financing capacity in the future• Alternative financing methods
    20. 20. Financing the economy todayfacts & figuresFebelfin 21 May 201320
    21. 21. + 87.6billionEUREXTRA(since2007)“One EUR credit for each EUR of savings”(end 2007 – end 2012)Febelfin 21 May 2013 21
    22. 22. Evolution of credit supply to businessesFebelfin 21 May 2013 22HoogtepuntExtract from the 2012 Annual Report of the National Bank of BelgiumIn Belgium, the credit institutions continued the reorganisation of their balance sheets which they had started as of the outbreakof the financial crisis. In 2012, for instance, they carried out a reduction of their exposures to the peripheral countries of the eurozone. At the same time, they refocused on their intermediation activity in Belgium and on their strategic markets: the depositscollected from their retail customers have increased, and the granting of credit has overall been maintained.Febelfin data= NBB + self-employed/professionsNBB data= volume of credittaken up by Belgiannon-financialcompanies112,696111,090114,655116,705120,608118,033120,712117,411116,986118,445120,944120,920122,296124,158126,904128,753129,391130,031130,781128,829128,24497,070100,335104,350104,696106,447105,069110,069105,501106,354108,531110,866111,573112.607112,545116,729115,695115,805116,982118,387116,244116,981117,82395,000100,000105,000110,000115,000120,000125,000130,000135,000Turnover(x€1,000,000)Febelfin Observatorium NBB
    23. 23. Credit supply to businessesat competitive interest ratesFebelfin 21 May 2013Average weighted interest rate fornew loans23Source : NBB figures – Observatory for credit to non-financial companies (current figures)(*) Average for January – March 2013Yearly average weighted interest rates, in %2007 2008 2009 2010 2011 2012 2013 (*)5.03% 5.32% 3.73% 3.20% 3.45% 3.07% 2.96%
    24. 24. Traditional credit supply under pressure…Febelfin 21 May 2013Credit demand diminishes Credit production diminishesDifficult economic contextPossible impact on solvency ofSMEs / Possible decline infinancial independence of SMEsRegulationEconomyBasel IIILT/MT credit supplybecomes more difficult24
    25. 25. Economic climate: SME equity under pressure25The degree of financial independence is the ratio between the stockholders equity and the total liabilities. When theratio is high, the company is independent of third-party funds, and this has two positive consequences: on the onehand, the financial charges are weak and thus weigh little on the results; in addition, new debts can, if necessary, beeasily contracted and under good conditions. The degree of financial independence can also to be interpreted as ameasurement of the financial risk incurred by the company, the third-party remuneration being fixed, unlike theresults of the company, which fluctuate in time. (NBB)Febelfin 21 May 2013SME
    26. 26. The financing capacity in the future?- Belgian savings do not sleep- Not all deposits are the same- Limits to the financing capacityFebelfin 21 May 201326
    27. 27. Belgian savings do not sleepFebelfin 21 May 2013 27Financing of the Belgian economy by the credit institutions (million €)Source: NBB dataTotal Belgian deposits Credit to private sectorCredit to public authorities Monetary institutions
    28. 28. Belgian savings do not sleepFebelfin 21 May 2013-200000-150000-100000-50000050000100000Depositosurplus: private sector + overheden Depositosurplus: private sectorDeposit surplus: private sector + government Deposit surplus: private sectorIn million EUR. Source: NBB data.=> More than 100% of Belgian deposits is transferred into credit (private + government)28
    29. 29. Not all deposits are the sameFebelfin 21 May 2013 29Deposits: volumes according to type of deposit (in million EUR)Since the crisismore insecurityleads to more shortterm savingsaccountsSince the crisismore insecurityleads to less longterm depositsSource: NBB dataMacro economic parameters determine duration of deposits(e.g. GDP growth, interest rates, unemployment, etc…)Current accountsSavings depositsTotal deposits (including public authorities, insurers and pension funds)Time deposit accountsTotal
    30. 30. Febelfin 21 May 2013 30Limits to the financing capacityA changing financial and economic environment may cause a standstill in the growth ofretail/corporate depositsEvolution share of savings accounts in the financial assets of householdsSource: NBB dataPrudence neededin government policy measuresas financing capacity maydiminish in the future
    31. 31. Alternative financing methodsFebelfin 21 May 201331
    32. 32. Financing needs of the economyLT credit supplyby banksInvestment creditLT export creditST credit supplyby banksDocumentary creditStraight loansST export creditLT debt financingSME fundProject bondsPeople’s loanEquityVernture capitalWin-winCrowd fundingTRANSFORMATION INTERMEDIATIONTraditional credit supplyby banksAlternative formsof financing32Febelfin 21 May 2013
    33. 33. Dialogue between the sector and the publicauthorities on alternative financing methodsFebelfin 21 May 2013SME fundsVenture capital /win-win loans„People‟s loans‟Project bondsCrowd funding Corporate bondsEuronext33
    34. 34. Febelfin 21 May 2013 34• Keep on supplying credit (NBB)• Economic context weighs on demand• Initiatives for alternative financing• Specific points of attention
    35. 35. Febelfin 21 May 201335• 2013 is not the same as 2008• Upcoming challenges
    36. 36. 2013 is not the same as 2008Major efforts in the field of solvency, liquidity and balancesheet reductionSource: Febelfin calculations based on NBB data (consolidated basis)36Febelfin 21 May 2013 36Reduced balance sheet, increased capital, less leverageTotal liabilities ofthe Belgianbanking sector(in billion EUR)Total capital andreserves of theBelgian bankingsector(in billion EUR)Leverage(in units)EndSeptember 20071,567.9 50.7 29.9EndSeptember 20121,143.0 59.1 18.3Evolution as apercentage-27.1% +16.6% -38.7%
    37. 37. Febelfin 21 May 2013Source:NBB (in billion EUR)Belgian banks rely more on deposits than on funding provided by the financialmarkets2013 is not the same as 2008Major efforts to improve liquidity37* Regulated liquidity ratio: this is the ratio between the net loss of means in a stress scenario (1 monthperiod) and the buffer of liquid assets that are available for countering the loss. The ratio must be 100 %or less (the lower the figure, the stronger the liquidity position). Source NBB*Retail deposits wholesale financing regulatory liquidity ratio
    38. 38. Evolution of risk-weighted assets(Source: NBB, in billion EUR)2007 2008 2009 2010 2011 Sept2012Difference(%)583.5 491.7 407.5 372.5 373.8 368.5 - 36.8%Febelfin 21 May 2013Banks take less risks2013 is not the same as 2008Major effort to improve solvency38
    39. 39. Febelfin 21 May 2013Reduction:• Of international activities andexposure abroad• Of financing via financial marketsGrowth:• Of funding via the national market(savings deposits)• Of granting of credit to the nationalmarket (mortgages and credit toenterprises)2013 is not the same as 2008Belgian banking activities have become more Belgian39457.8 543.4 568.3 642.11,110.1599.6999.6500.909/2007… sep/12 09/2007… sep/12National (EUR Bio.)*International (EUR Bio.)Assets Liabilities09/20121,567.9 1,567.91,143.0 1.143.0+18.7% +13,0%-46.0% -49.9%-27.1% -27.1%* Consolidated figures, Belgian banks09/2012
    40. 40. Brussel is not Wall StreetBelgian investment banking essential for open andexport based economyFebelfin 21 May 2013 40What is investment bankingin Belgium?Financing of businessesSpecialized financing:Foreign trade highly important for Belgian economyHedging currency & interest rate risksProp trading highly reduced and low in volume
    41. 41. Stricter regulation and reinforced controlat Belgian, European and international levelFebelfin 21 May 2013 41Basel III(i.a. strictercapital, liquidity andgovernancerequirements)2010 Banking Act/Twin Peaks I(i.a. NBB/ FSMAmodel, blocking ofstrategic decisions)Twin Peaks II G20/EU
    42. 42. New regulation may pressure profitabilityFebelfin 21 May 2013 4231/12/200631/12/2012051015202530354031/12/200631/12/2012Evolution of profitability by sector
    43. 43. Unintended consequencesRegulationLowprofitabilityFragilityof thebanking sectorFebelfin 21 May 2013 43
    44. 44. Febelfin 21 May 201344• Radically different landscape• Stricter regulation and tightening control at variouslevels• Investment banks in Belgium important for an openeconomy and for SMEs• Cumulative impact of existing regulations beforeundertaking the next reforms
    45. 45. Febelfin 21 May 201345
    46. 46. The service provided by the Belgian banksis multi-channel and innovativeFebelfin 21 May 2013Network of branchesand independentagentsSelfbanks Phone bankingInternet banking Mobile banking46
    47. 47. Promotion of payments“By card, of course”Campaign with ComeosIntroduction of codelesspayments…Development of newinstrumentsSeveral smartphone/ mobile banking formulasInvesting in e-commerce…Public AuthorityInvolvementPublic authorities’ examplefunctionTax incentivesBanning cash paymentsabove a certain thresholdFebelfin 21 May 2013What can the banking sector do?47
    48. 48. Febelfin 21 May 201348• Multi-channel landscape• Broadening of the payments offer through innovation• Security a priority, i.a via prevention campaigns
    49. 49. Febelfin 21 May 201349
    50. 50. Banks fulfil their role in societyFebelfin 21 May 2013 50
    51. 51. Febelfin 21 May 201351• Updating the Codes of Conduct• Specific support• Creating a framework for responsibleinvestment, savings and credit supply• Investing in training• Involvement in social initiatives
    52. 52. V. CONCLUSIONFebelfin 21 May 201352
    53. 53. www.febelfin.be
    54. 54. Alex PuissantDebate moderated by Alex PuissantMax Jadot, Chief ExecutiveOfficer & Chairman of theExecutive Committee BNPParibas FortisJan deBrabanter, DeputySecretary-GeneralBECILuc Versele, Chairman ofthe Executive CommitteeCrelanRudyDemotte, Minister-President of WalloniaOlivier Hamoir, DirectorMcKinsey & Company Febelfin 21 May 2013 54
    55. 55. Final round-upFebelfin 21 May 2013 55Koen Geens, Minister ofFinance
    56. 56. Q & AFebelfin 21 May 2013 56

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