Deutsche Bank : “The COVID-19 crisis has demonstrated the resilience of the European financial system”

One of the most important European economic and political conferences was held in Berlin in September - the Eurofi Financial Forum, bringing together 300 guests. Deutsche Bank and other DAX companies were among the sponsors and hosts of this event that was closed to the media. Four Management Board members took part in this high-profile meeting for EU policymakers and financial market participants, marking Germany's assumption of the presidency of the Council of the European Union. Christian Sewing, James von Moltke, Stefan Simon and Bernd Leukert spoke in panel discussions on the key issues for the financial sector - the effects of COVID-19, Brexit, the banking and capital market union and the digitalisation of banks. They also supported regulatory measures to improve the competitiveness of German and European banks.

The four board members also published articles in Views - The Eurofi Magazine. 'The banking sector wants to support immediate recovery and deliver the investment required to put Europe onto a sustainable growth path. But we cannot do it alone - or under the current regime', writes CEO Christian Sewing in his article, calling for greater political ambition and a policy vision. He says a key component is the banking union, which was agreed years ago, but has faltered. Initiated some six years ago, the banking union provides for uniform financial market supervision and regulations on bank resolution, and would free up capital that could be used for economic recovery after the pandemic.

'The COVID-19 crisis has demonstrated the resilience of the European financial system in the face of extraordinary challenges', Deutsche Bank's Chief Administrative Officer Stefan Simon writes. He also said that it is paramount for the impact of the coronavirus pandemic to be taken into account in the Basel III regulations, because otherwise the increased capital requirements on European banks would put them at even more of a disadvantage compared to their US counterparts. He also warned against a fragmentation of the financial markets given the impending Brexit.

James von Moltke focused among other things on Brexit, noting that the City of London has been Europe's financial centre for more than 40 years. Particularly in the face of Brexit, supervisors will need to establish new modes of cooperation to avoid unnecessary disruption on the European financial markets. And Bernd Leukert describes digitalisation as one of the biggest drivers of change in global financial markets.

The high-calibre guests and speakers included ECB Executive Board member Isabel Schnabel, German Federal Minister of Finance Olaf Scholz, Chairperson of the European Banking Authority (EBA) José Manuel Campa, Executive Vice-President of the European Commission Valdis Dombrovskis, President of the German Federal Financial Supervisory Authority (BaFin) Felix Hufeld and Bundesbank Executive Board member Joachim Würmeling.