On 6 June 2018, CFA Institute hosted a conference at the European Parliament in Brussels on the progress of the European Commission’s flagship Capital Markets Union project, which aims to create a single EU-wide market for capital by 2019. Josina Kamerling, Head of Regulatory Outreach EMEA at CFA Institute, reviews the discussion and evaluates the proposed regulation and the challenges and opportunities that accompany it.
Boekrecensie - “De limieten van de markt” / Paul De Grauwe. Recensie door Carlos Bourgeois, lid van het redactiecomité tijdschrift Bank- en Financiewezen.
Interview with Hans De Cuyper, Chairman Assuralia. Interview by Frank Lierman, Chairman of the editorial board of the Revue bancaire et financière / Tijdschrift Bank- en Financiewezen.
Report on the presentation given by mister Philipp Hartmann, Senior Manager and Policy Adviser of the European Central Bank, to the Belgian Financial Forum in Brussels on the 14th of May 2018. Report written by mister Frank Lierman, Chairman Editorial Board of the Revue bancaire et financière/Bank- en Financiewezen.
Part of the financial news in recent months has been dominated by articles about ‘cryptocurrencies’. Sky-high gains, followed by significant price falls, both for the currencies and the companies involved, have been everyday occurrences. Little wonder, then, that comparisons have been made with the dotcom bubble: high valuations for technology that has not (yet) proved itself. In developed countries, cryptocurrencies are used mainly as a speculative asset. Believers see the long-term value of these cryptocurrencies mainly based on the underlying blockchain technology, which is expected to have many other applications in combination with new technology.
By contrast, in weak and underdeveloped states, there is mistrust with regard to cryptocurrencies, often because of their anonymity that facilitates criminal dealings. So, whereas believers see cryptocurrencies as a far-reaching innovation, others view it as a way to create ‘funny money’. And while some invest in these currencies based on the promise of a future market, there may be many dangers lurking around the corner, such as Internet fraud, phishing scams and hacking of the underlying software. Just where these virtual currencies will end up remains an unanswered question today. But allow us to provide you with an initial guide.
Based on the involvement in 15+ blockchain cases, what are the challenges of a Blockchain project? It is mostly not about the hard coding work of a typical Blockchain technology, that is not yet mature, both improving very fast. It is the other area’s that make or break a Blockchain initiative. It is about the vision and business case, the collaboration aspect, the regulatory environment, standards and the integration aspects in legacy systems.
Blockchain technology looks promising to fundamentally improve the ‘know your customer’ (KYC) process with financial institutions and at the same time to empower corporates to manage and control their digital identity. A distributed shared ledger allows participating banks and other organisations, such as government institutions, to share updates on corporate profiles instantly within the parameters set by the corporate itself, and this in a privacy preserving manner and with full audit traceability. B-Hive, a fintech innovation collaborative platform, started exploring with its partners last year the creation of a blockchain platform to simplify identity management for corporates and KYC which could significantly reduce the onboarding time for business customers and reduce KYC costs significantly. Following iterative development of a proof of concept based on Hyperledger, we are now conducting extensive pilot testing with Isabel, KBC, Belfius, ING and BNP Paribas Fortis.
On 12th April 2018, CFA Institute and CFA Society Belgium hosted an evening discussion at the National Bank of Belgium with Vítor Constâncio, former Vice President of the European Central Bank, and Sir Paul Tucker, Chair of the Systemic Risk Council and former Deputy Governor of the Bank of England. The theme for the evening was the evolving state of systemic risk regulation ten years after the global financial crisis. This article reviews the discussion and evaluates the balance of regulation with regard to its ability to mitigate future shocks to the financial system.
Over the last years credit risks issues have become more and more important in the priorities of CEO's. The risk of company failure due to buyer's payment default is one of the highest. Businesses go bankrupt more often due to a lack of cash than due to a lack of equity. Therefore, managing properly the main (only) money flow of any trading company - the trade receivables - is a key-success factor for long term profitable growth. Based on concrete examples and fruitful experience in credit and cash management this paper will elaborate on the best way to deal with credit risk. The digital future will also be explored through its main visible demonstration: the Fintechs.
Interview Karel Van Eetvelt, CEO van Febelfin. Interview by Frank Lierman, chairman of the Editorial Board of Bank- en Financiewezen-Revue bancaire et financière.