EUF sends response to the Consultative Document on Reducing variation in credit risk-weighted assets.

EUF sends response to the Consultative Document of Basel Committee on Banking Supervision on Standardized Measurement Approach for operational risk.

The EUF is glad to publish its latest Newsletter.

Highlights include:

  •      Welcome from new EUF Chairman
  •      Making factoring accessible to everyone
  •      News on the European General Data Protection Regulation
  •      Constant and stable growth – Factoring in Figures
  •      PRC Committee Update: Towards a proper regulation for factoring

 

The Newsletter may be downloaded here:

Factoring and Commercial Finance default rates up to 4x lower than bank lending


SMEs account for 87% of users

 

Combining regular research from its Economics and Statistics Committee with the results of a confidential survey of eighty provider companies, The EUF has published its Whitepaper Report on the impact of the Industry in Europe.


Key messages include:


•    Factoring and Commercial Finance advances €170Bn to around 164,000 European businesses of all sizes, large, medium and small, with Industry turnover worth over 10% of EU GDP.
•    The three key real economy sectors of Manufacturing, Service and Distribution are the principal focus, jointly representing 75% of turnover and advances.
•    While SMEs dominate by number, the Industry is now supporting all sizes of business from micro to global international; indeed, large corporates represent 60% of total advances.
•    Impairment losses are very low in absolute terms and between three and four times lower than comparable forms of lending in the EU; a safe, secure form of lending that providers and regulators should favour.


The Whitepaper powerfully reinforces the EUF’s view that the European Factoring and Commercial Finance (FCF) Industry is a continuing success story, providing working capital to support businesses in the real economy in Europe, creating funding, employment and growth opportunity.


The Report is available on the EUF website to download here.

Data collated by the EU Federation for the Factoring and Commercial Finance Industry (EUF) indicates that in 2015, factoring and commercial finance volumes in the EU overall grew by over 5,4% to €1.47 Trillion.

This continued year on year growth confirms yet again the increasingly important role played by the factoring industry in sustaining liquidity of businesses and boosting the fragile economic recovery. Growth in this type of funding continues significantly to outstrip GDP growth in the Region and confirms its importance in the funding of the real economy.

The newly elected Chairman of the EUF, Erik Timmermans, noted: "The continued growth in total turnover again clearly demonstrates that the EU economy is using Commercial Finance as a source of finance to build and sustain business operations. With the total turnover representing over ten percent of the EU GDP, it’s increasingly clear that this form of funding is a central and critical part of the financial mechanisms that support and encourage European business."

Please find the Press release with turnover volumes by country here: