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ECB gaat meer rekening houden met kostprijs eigen woning

Lundi 30/5/2022
Jana Jonckheere

The ECB’s strategic review (2020-2021) came out in favour of including owner-occupied housing costs in the way inflation is measured. Surveys that the ECB and the euro area central banks held with the general public revealed that there is considerable concern about rising costs for housing, when it comes to the concept of “inflation”. Yet, such things as house purchase costs are not yet included in the current inflation measure that the ECB uses, namely the Harmonised Index of Consumer Prices (HICP).

Eurostat already publishes an index, in which house purchase costs, as well as other expenses such as stamp duty and renovation work, are included. This is the owner-occupied house price index. The ECB is calling for this index to be gradually integrated, in stages, into the existing HICP index. This article looks into just what exactly this index reflects, how housing costs will be included, and what impact would that have on the measurement of inflation. The focus is on findings for Belgium.

The impact is quite significant in the most recent period. In 2020, Belgium’s inflation rate, including the cost of owner-occupied housing, would for example have been 0.7 % instead of the official figure of 0.4 %, an impact of 0.3 of a percentage point. Based on the first three quarters of 2021, the impact would even be 0.4 of a percentage point in that year.
L’empreinte belge s’étend

Lundi 30/5/2022
Marie Lemeire

Strangely enough, foreign companies invested more in Belgium than vice versa till 2015. Belgium overcame this peculiar situation. Belgium's outgoing direct investment exceeds its incoming nowadays, creating wealth abroad. This blog describes how some key investors contributed to a turnaround and caused more capital to flow to foreign economies. You can also read more about the stability and other advantages of foreign direct investment
Raising awareness for sustainability is a crucial part of the financial sector’s social role

Lundi 25/4/2022
Karel Baert

This article is based on the introductory speech given by Karel Baert, CEO of Febelfin, at Febelfin Connect (Brussels, 28 March 2022), Febelfin’s annual networking event. The topic of this year’s event was “Financing the transition towards a more sustainable society”.
This federal government acknowledges the importance of sustainable investment and wants to strengthen it in the years to come

Lundi 25/4/2022
Vincent Van Peteghem

This article is based on the key-note speech given by Belgium’s Deputy Prime Minister and Minister of Finance, Vincent Van Peteghem, at Febelfin Connect (Brussels, 28 March 2022), Febelfin’s annual networking event. The topic of this year’s event was “Financing the transition towards a more sustainable society”.
The challenges of good corporate citizenship

Lundi 25/4/2022
Andrea Enria

This article is based on the key-note speech given by Andrea Enria, Chair of the Supervisory Board of the European Central Bank, at Febelfin Connect (Brussels, 28 March 2022), Febelfin’s annual networking event. The topic of this year’s event was “Financing the transition towards a more sustainable society”.
De financiële sector kan de wereld veranderen

Lundi 25/4/2022
Febelfin

This article is based on the panel discussion at Febelfin Connect (Brussels, 28 March 2022), Febelfin’s annual networking event. The topic of this year’s event was “Financing the transition towards a more sustainable society”. The panel consisted of Dirk Wouters, Vice-Chairman of Febelfin, Hilde Vernaillen, President of Assuralia and Marie Lambert, Financial Management Professor at the Université de Liège. Moderator of the event and panel discussion was VRT-journalist Wim De Vilder.
We are in all of these challenges together and we are all part of the solution

Lundi 25/4/2022
Johan Thijs

This article is based on the closing speech given by Johan Theys, Chairman of Febelfin, at Febelfin Connect (Brussels, 28 March 2022), Febelfin’s annual networking event. The topic of this year’s event was “Financing the transition towards a more sustainable society”.
The EU-wide stress tests of EBA/SSM: necessity and guarantee for a resilient banking sector?: some introductory remarks

Jeudi 10/3/2022
Jo Swyngedouw / Saifeddine Ben Hadj

The purpose of a stress test for banks is straightforward: determine how much capital is required by a bank to navigate through a financial storm and continue to provide financing to the economy. The first EU-wide stress test was conducted in 2009 in the aftermath of the global financial crisis to restore confidence and has become since then an integral part of the supervisors’ toolbox. It helps assess financial vulnerabilities and provide market participants with comparable information. Thanks to the interaction with the supervisor, the stress test encourages banks to think about their own vulnerabilities and their exposure to tail events. The results feed directly into capital requirement given that stress tests are the main input to determine the pillar two guidance (P2G). In the future, supervisory stress tests might move towards a more extensive use of gradual data to increase efficiency and realism. The scope of the exercise should also be enlarged to cover climate risk in addition to the more traditional financial risks.
The EU-wide stress test: past, present and future

Jeudi 10/3/2022
Jacob Gyntelberg / Raffaele Passaro / Dragan Crnogorac / Benno Schumacher

In the aftermath of the 2008 Global Financial Crisis, supervisors have started performing stress testing exercises to assess the resilience of financial institutions to adverse financial and macroeconomic conditions. The EBA has so far conducted and coordinated five EU-wide stress tests. These have helped provide an assessment of banks’ vulnerabilities to periods of stress, foster transparency and make stress testing an integral element of both banking supervision and banks’ risk management. The results of the 2021 exercise confirmed the strength of banks capital positions even under a very severe scenario. Going forward it is envisaged that the EU-wide stress will rely on a “hybrid” approach combining supervisory and banks’ own models to add operational efficiency. The incorporation of new risks such as cyber and ESG risks into stress testing is a priority but also a challenge. This will require the use of new data, modelling and risk management skills for both banks and supervisors.
Stress Testing: a Bank’s Perspective

Jeudi 10/3/2022
Christine Van Rijsseghem / Tom De Wilde

In a context which is increasingly volatile and unpredictable, with new challenges emerging on a continuous basis, it is important that both banks/financial institutions and supervisors keep a good view on possible, more or less likely outcomes so that they are prepared by building a more resilient financial sector. By being prepared for different outcomes banks can safeguard their future capital base in a way that allows them to continue their activities such as lending to the economy. Stress testing is a key tool in this respect and its importance will only grow.