On 31 May 2018, the newly elected Executive Board of the ABBL cluster, entirely dedicated to banks active in corporate and commercial banking including relevant intermediary services, held its first meeting.
Hosted by Mr Frank Krings, Chief Executive Officer of Deutsche Bank Luxembourg S.A. and Head of the cluster, the team discussed the importance of this business segment in and for the Luxembourg economy and the whole financial centre. In this context, the Executive Board assessed and elaborated how to enhance the cluster’s relevance and strategic orientation by focusing on central financial and non-financial intermediation roles of banks and other financial market intermediaries in the international corporate and wholesale markets.
As a result, the Executive Board unanimously identified and endorsed 3 main pillars as the backbone of the cluster’s activities going forward:
- Corporate Finance, focusing on e.g. risk and maturity transformation, multipartite intermediation, governance and safeguards. The Corporate Finance remit of the cluster shall also include ESG (Environmental, Social and Governance) finance and loan agency.
- Capital Markets, focusing on e.g. format conversion and fungibility, eligibility assessment, risk management (including hedging), and information intermediation. The Capital Markets remit of the cluster shall also include covered and green bonds, and ESG investing.
- Cash Management, focusing on e.g. liquidity management and funding, liquidity and payment intermediation. The Cash Management remit of the cluster shall also include payments and treasury.
The refocusing and intended rebranding of the cluster (into Corporate Finance, Capital Markets and Cash Management Cluster, Luxembourg, in short, the CCUBE) goes hand in hand with the ABBL’s agenda of increasing communication and reinforcing trust as well as paving the way to define a vision, set-up a strategy and selecting topics likely to add value to and federate its members. In this context, the cluster shall:
- Beyond services to corporates, reinvigorate the wholesale, multipartite and institutional investor dimension of financial intermediation in and out of the Luxembourg financial center, also with a view to Brexit;
- Systematically explore relevant industry adjacencies for the Luxembourg financial services hub at EU, European, and EMEA level (including, but not limited to the Luxembourg Stock Exchange, the European Investment Bank, and the European Stability Mechanism).
Other issues discussed during this inaugural meeting included among others:
- the promotion and communication strategy of the CCUBE cluster (in Luxembourg and abroad);
- the gathering of statistical information on the sector;
- the current regulatory dynamics at national, European and international level;
- the upcoming “Corporate Finance” brochure developed by Luxembourg for Finance in collaboration with various members of the CCUBE cluster;
- the recent initiative by selected members of the CCUBE and the Depositary Banking Cluster – in collaboration with the Luxembourg Stock Exchange and the ABBL as a whole – in relation to a forthcoming transposition of an EU directive on Fiduciary activities into national law.
The ABBL Board formally approved the proposal for the rebranding of the old Commercial banking Custer into Corporate Finance, Capital Markets and Cash Management Cluster on 4 July 2018.
By Frank Krings, Head of the Corporate Finance, Capital Markets and Cash Management Cluster, Luxembourg & Fabio Mandorino, ABBL Adviser, Commercial Banking/Private Banking/Sustainable Finance