Activities of Pedro SILVA PEREIRA related to 2021/2184(INI)
Shadow reports (1)
REPORT on Banking Union – annual report 2021
Amendments (64)
Amendment 2 #
Motion for a resolution
Citation 9 a (new)
Citation 9 a (new)
— having regard to The Five Presidents’ Report of 22 June 2015 entitled ‘Completing Europe’s Economic and Monetary Union’;
Amendment 11 #
Motion for a resolution
Citation 23 a (new)
Citation 23 a (new)
— having regard to the ECB recommendation of 15 December 2020 on dividend distributions during the COVID- 19 pandemic;
Amendment 12 #
Motion for a resolution
Citation 23 b (new)
Citation 23 b (new)
— having regard to the Commission communication of 16 December 2020 on tackling non-performing loans in the aftermath of the COVID-19 pandemic (COM(2020)0822);
Amendment 13 #
Motion for a resolution
Citation 23 c (new)
Citation 23 c (new)
— having regard to its resolution of 14 March 2019 on gender balance in EU economic and monetary affairs nominations;
Amendment 14 #
Motion for a resolution
Citation 23 d (new)
Citation 23 d (new)
— having regard to its resolution of 25 March 2021 on strengthening the international role of the euro;
Amendment 15 #
Motion for a resolution
Citation 23 e (new)
Citation 23 e (new)
— having regard to the Monitoring report on risk reduction indicators published by the Single Resolution Board on November 2021;
Amendment 16 #
Motion for a resolution
Citation 23 f (new)
Citation 23 f (new)
— having regard to the ECB's feedback letter on the input provided by the European Parliament as part of its 'resolution on Banking Union - Annual Report 2020';
Amendment 17 #
Motion for a resolution
Citation 23 g (new)
Citation 23 g (new)
— having regard to the Commission proposal of 24 November 2015 for a regulation of the European Parliament and of the Council amending Regulation (EU) No 806/2014 in order to establish a European Deposit Insurance Scheme (COM(2015)0586);
Amendment 18 #
Motion for a resolution
Citation 23 h (new)
Citation 23 h (new)
— having regard to the European Supervisory Authorities (ESAs)’ second joint risk assessment report of September 2021;
Amendment 24 #
Motion for a resolution
Recital A
Recital A
A. whereas the bBanking uUnion (BU) currently consists of the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM), ensuring full alignment between supervision and management of banking crises; whereas the BU still lacks completion with the establishment of an European Deposit Insurance Scheme (EDIS) and the implementation of the backstop for the Single Resolution Fund;
Amendment 29 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
A a. whereas the COVID-19 pandemic crisis has demonstrated that a strong, resilient and well-capitalised banking sector, combined with integrated capital markets, is vital to support the recovery of the European economy;
Amendment 30 #
Motion for a resolution
Recital A b (new)
Recital A b (new)
A b. whereas, despite the unprecedented uncertainty caused by new virus variants, the banking sector has responded to the COVID-19 pandemic crisis with resilience, founded on the regulatory overhaul enacted since the global financial crisis, facilitated by the Single European Rulebook and single supervision in the Banking Union, and supported by extraordinary and needed public policy relief measures and capital conservation practices;
Amendment 31 #
Motion for a resolution
Recital A c (new)
Recital A c (new)
A c. whereas a more stable, competitive and convergent Economic and Monetary Union requires a solid Banking Union with a European Deposit Insurance Scheme (EDIS) and a more developed and safe Capital Markets Union (CMU);
Amendment 32 #
Motion for a resolution
Recital A d (new)
Recital A d (new)
A d. whereas consumer and investor protection is paramount to the deepening of the CMU, and strong EU consumer protection rules providing a strong minimum baseline are necessary; whereas the Banking Union still lacks effective tools to tackle the problems consumers are facing, such as artificial complexity, unfair commercial practices, the exclusion of vulnerable groups from using basic services and the limited involvement of public authorities;
Amendment 33 #
Motion for a resolution
Recital A e (new)
Recital A e (new)
A e. whereas the completion of the Banking Union beyond its two existing pillars, in particular the establishment of an EDIS, remains a priority;
Amendment 34 #
Motion for a resolution
Recital A f (new)
Recital A f (new)
A f. whereas the provisions set out in the Deposit Guarantee Schemes Directive (DGSD) provide for a minimum baseline of protection for depositors; whereas, however, depositors across the Banking Union should enjoy the same level of protection through the establishment of an EDIS;
Amendment 35 #
Motion for a resolution
Recital A g (new)
Recital A g (new)
A g. whereas the backstop for the Single Resolution Fund (SRF) will have been introduced by 2022, two years earlier than previously envisaged, providing a common, system-wide safety net for banks in resolution;
Amendment 36 #
Motion for a resolution
Recital A h (new)
Recital A h (new)
Amendment 37 #
Motion for a resolution
Recital A i (new)
Recital A i (new)
A i. whereas the EU and the UK are currently committed to maintaining regulatory and supervisory cooperation in the field of financial services; whereas this cooperative approach should underpin long-term EU-UK relations;
Amendment 38 #
Motion for a resolution
Recital A j (new)
Recital A j (new)
A j. whereas the European Commission will extend its temporary permit allowing European banks and fund managers to use UK clearing houses therefore avoiding any short-term cliff- edge effects;
Amendment 47 #
Motion for a resolution
Recital C
Recital C
C. whereas the problems of the banking sector may worsen afteran early or uncoordinated withdrawal of the temporary support measures introduced during the COVID-19 crisis are liftedcould see the re-emergence of some pre- crisis deficiencies and vulnerabilities of the banking sector;
Amendment 54 #
Motion for a resolution
Recital C a (new)
Recital C a (new)
Amendment 60 #
Motion for a resolution
Recital D
Recital D
D. whereas some financial institutions in the BU are heavilyhave invested in the debt of their own home sovereign;
Amendment 64 #
Motion for a resolution
Recital E
Recital E
E. whereas the role of the banking sector is crucial to the recovery and transition to a low-carbon economy; whereas climate change, environmental degradation and the transition to a low- carbon economy are factors to be taken into account when assessing the sustainability of banks’ balance sheets, as a source of risk potentially impacting investments across regions and sectors; whereas further assessment needs to be conducted on the best way on how to internalise these potential risks;
Amendment 78 #
Motion for a resolution
Recital F
Recital F
F. whereas there are numerous challenges to the digitalisation of finance; whereas same risks should be subject to the same prudential rules;
Amendment 82 #
Motion for a resolution
Recital G
Recital G
G. whereas there is a need for effective anti-money laundering supervision; whereas the further strengthening and harmonisation of EU prudential and anti- money laundering supervision and enforcement, which are necessary to protect the integrity of the EU’s financial system, are a priority;
Amendment 93 #
Motion for a resolution
Recital H
Recital H
H. whereas consumers, investors and all depositors should be wellproperly protected;
Amendment 101 #
Motion for a resolution
Paragraph -1 (new)
Paragraph -1 (new)
-1. Recalls that Banking Union (BU) is an essential complement to the Economic and Monetary Union (EMU) and the internal market, which aligns responsibility for supervision, resolution and funding at EU level and forces banks across the euro area to abide by the same rule book;
Amendment 105 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Recalls that one goal of the BU isthe BU aims to ensure that the banking sector in the euro area and the wider EU is stable, safe and reliable, thus contributing to financial stability as wells as to promote the security of the banking system and the prevention of bank bailouts by tax payers; supports efforts to strengthen and complete the BU; stresses that a solid and complete BU will result in increased confidence in the banking sector;
Amendment 111 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1 a. Underlines the vital contribution to addressing the COVID-19 crisis of temporary measures such as public guarantee schemes, moratoria on loan repayments for borrowers in financial difficulty, the revised State aid framework, the central banks’ liquidity programmes and the ECB’s targeted longer-term refinancing operations (TLTRO), asset purchase programme (APP) and pandemic emergency purchase programme (PEPP); also welcomes the targeted changes to the Capital Requirements Regulation (CRR) introduced by the ‘CRR quick fix’ in order to support banks’ lending capacity to households and businesses;
Amendment 113 #
Motion for a resolution
Paragraph 1 b (new)
Paragraph 1 b (new)
1 b. Points out the importance to secure a well-coordinated, prudent, gradual and targeted shift from pandemic relief to recovery support tools, including reforms in the Member States through the national recovery and resilience reform plans; notes that an early or uncoordinated withdrawal of the temporary measures could see the re- emergence of the pre-crisis deficiencies and vulnerabilities of the banking sector, potentially compromising growth and the outcome of the recovery;
Amendment 125 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Stresses that the relatively goodWelcomes the temporary relief measures put in place as an initial containment measure to limit economic damage caused by the pandemic and protecting the performance of banks during the COVID- 19 crisis is rela; noteds to the policies implemented by the Member States during the pandemic, as well as to temporary measures under Regulation (EU) 575/2013 (Capital Requirements Regulation)hat economic support measures must remain in place as long as necessary, and should be tailored to current and expected economic circumstances;
Amendment 140 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Recalls the key role of the EU banking sector inat a strong, resilient, well-regulated and well-capitalised EU banking sector is vital to support and financinge the recovery of the European economy;
Amendment 144 #
Motion for a resolution
Paragraph 4 a (new)
Paragraph 4 a (new)
Amendment 146 #
Motion for a resolution
Paragraph 4 b (new)
Paragraph 4 b (new)
4 b. Notes that a fully-fledged Banking Union, together with a fully integrated and strong CMU, would contribute to the resilience of the European economy, and support the functioning of the EMU; welcomes therefore, the legislative proposals presented on 25 November 2021 to advance on CMU; highlights the importance of a level playing field that avoids disadvantages for SMEs in terms of access to finance, and the need to carefully monitor the issuance of securitised products; reiterates that bank- like systemic risks can occur where credit intermediation takes place in an environment where regulatory standards and supervisory oversight are looser than for regular banks; calls on the Commission and ESAs to assess the need to better regulate the shadow-banking sector and to put forward, where appropriate, legislative proposals, and to continuously monitor the resilience of capital markets;
Amendment 147 #
Motion for a resolution
Paragraph 4 c (new)
Paragraph 4 c (new)
4 c. Highlights that the Recovery and Resilience Facility may provide impetus for the completion of the Banking Union, considering the crucial role of the banking sector in providing access to credit and channelling the available funding into the real economy, in particular into sustainable and socially responsible investments;
Amendment 148 #
Motion for a resolution
Paragraph 4 d (new)
Paragraph 4 d (new)
4 d. Underlines the important role of public finance and investments, alongside private investments, in supporting the climate transition, as established in the Sustainable Europe Investment Plan;
Amendment 157 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Notes that the EBA, the ECB and the SRB still see many problemchallenges in the banking system, such as high stocks of non-performing loans (NPLs), exposures to sectors which are sensitive to the COVID- 19 crisis, deficiencies in risk management, and discrepancies in the implementation of International Financial Reporting Standard 9 (IFRS 9); underlines with concern that these problemchallenges are likely to increase after the withdrawal of the emergency measures;
Amendment 167 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Supports the ongoing work on the implementation of the Basel III rules; recalls that the transposition of these rules into EU law should be Basel compliant, although taking into account the principle of proportionality, and respect, where appropriate, the specificities and diversity of the EU banking sector; stresses that deviations from the internationally agreed rules should be temporary and EU regulation should converge to full compliance with Basel III standards over time;
Amendment 178 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Notes that the banking sector is adapting to the challenges of digitalisationWelcomes the accelerated pace of digitalisation in the banking sector, allowing banks to better serve clients remotely and offer new products and providing opportunities for increased cost-efficiency; stresses the need for further investments, research and adequate regulations; appreciates the work on the digital finance package; considers that the priority should be customer safety, inclusiveness and technological neutrality; observes with interestcalls for full respect for consumers’ rights and considers of outmost importance to promote financial inclusion, especially for vulnerable groups with low digital or financial literacy levels; appreciates the work on the digital eurofinance package;
Amendment 187 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7 a. Observes with interest the work on the digital euro; welcomes the objective of the digital euro functioning alongside cash as a means of secure and competitive digital payment; supports the ECB’s efforts in ensuring a high level of privacy, data protection, confidentiality of payment data, cyber resilience and security;
Amendment 189 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Recalls that the basis for the cooperation between the SSM and the UK Financial Conduct Authority is the Memorandum of Understanding between the ECB and the UK authorities, which entered into force on 1 January 2021; notes that the European Commission has recently announced the extension of its temporary permit allowing European banks and fund managers to use UK clearing houses, thereby avoiding any short-term cliff-edge effects;
Amendment 190 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8 a. Regrets the failure to ensure full gender balance in EU financial institutions and bodies, and in particular the fact that women continue to be underrepresented in executive positions in the field of banking and financial services; stresses that gender balance on boards and in the workforce brings both societal and economic returns; considers that the selection of applicants to EU financial institutions and bodies should be based on criteria of merit, diversity and ability, so that the institution or body involved operates as effectively as possible; calls on governments and all institutions and bodies to prioritise the achievement of full gender balance as soon as possible, including by providing gender-balanced shortlists of candidates for all future appointments in EU bodies;
Amendment 195 #
Motion for a resolution
Paragraph 8 b (new)
Paragraph 8 b (new)
8 b. Recalls its resolution of 14 March 2019 aiming to secure gender balance in the forthcoming list of candidates for EU economic and monetary affairs nominations and reiterates its commitment not to take into account lists of candidates where the gender balance principle has not been respected;
Amendment 211 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Considers the reduction of NPLs should remain a priority; warns that their number is likely to increase rapidly after the withdrawal of emergency support measuresat credit risk management and the continuation of reduction of NPLs should remain one of the key priorities; notes, however, that the aggregate non-performing loans ratio decreased further to 2.17% in the third quarter of 2021, despite the challenges caused by the pandemic thus confirming a downward trend; draws attention to the importance of prudential compliance, early identification and proactive management of NPLs;
Amendment 214 #
Motion for a resolution
Paragraph 10 a (new)
Paragraph 10 a (new)
10 a. Welcomes the ESAs’ second joint risk assessment report of September 2021 advising banks to prepare for a possible deterioration of asset quality in the financial sector, notwithstanding the improved economic outlook and to focus on proper assessment of the consequences of the pandemic on banks’ lending books, adequately manage the transition towards the recovery phase;
Amendment 217 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Is concerned about the rising level of sovereign debt on the balance sheets of banks in the BU; notes that government bondsNotes that the need to respond to the unexpected and serious challenges caused by the pandemic crisis has originated a rise of the share of sovereign debt on the balance sheets of banks; welcomes the creation of Next Generation EU and considers that it will provide high-quality, low-risk European assets, allowing for a re not risk-free balancing of sovereign bonds on banks’ balance sheets; emphasisets and that risks are differentiated; emphasiss that Next Generation EU will play an important role in supporting the recovery and must serve as an opportunity to enhance public and private investments and support the modernisation of the economy; notes that the issue of regulatory treatment of sovereign exposures requires an in-depth examination of the consequences of different approaches and be conducted within international fora;
Amendment 237 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Notes that the transition to a low- carbon economy presents new challenges and risks related to the preferenceneed for sustainable investments; stresses the need for an in-depth analysis of the economic efficiency of sustainable investmentrecalls that the ECB has concluded its first ever large-scale assessment of climate and environmental (C&E) risks management of EU banks in 2021, and concluded that while initial steps have been taken towards in corder to avoid a future bubble of green assets; calls for clear guidelines for banks based on economic dataporating C&E risks, further progress is still warranted; emphasises therefore that further supervisory pressure is required for banks to disclose and address climate-related and environmental risks appropriately;
Amendment 244 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12 a. Notes with concern the difficulty to obtain credible and comparable data on C&E assets; welcomes the efforts of the SSM to provide guidance and clarity to banks for self-assessment and the appropriate reporting of environmental and climate change-related risks; welcomes the recent ECB’s launch of supervisory climate risk stress test that will assess how prepared banks are for dealing with financial and economic shocks stemming from climate risk; considers the SSM climate risk stress test an important step in evaluating banks’ practices and identifying concrete areas of improvement; commends, in this context, the recommendation of the ECB guide on climate-related and environmental risks, enhancing a strategic, comprehensive approach to tackling climate-related risk; considers that these self-assessments and reports must be consistent with the proportionality principle and must not undermine banks’ capacity and competitiveness; underlines the importance of the EU Taxonomy legislation;
Amendment 253 #
Motion for a resolution
Paragraph 13
Paragraph 13
Amendment 259 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Draws attentionNotes President Lagarde’s recent remarks before the ECON Committee stating that 'energy prices continue to be the dangers of a very loose monetary policy stimulating inflation; points out the need for the gradual tightening of monetary policymain reason for the elevated inflation rates' and that 'is likely to remain elevated for longer than previously expected, but to decline in the course of this year'; also recalls the European Economic Winter Forecast 2022 of the European Commission stating that 'inflation is expected to decline markedly in the final quarter of the year and settle at below 2% next year';
Amendment 287 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Notes the problems and challenges related to home/host issues; points out that greater market integration requires credible safeguards in EU law for host Member States; stresses that the completion of the Banking Union is of the utmost importance to solve the home/host concerns;
Amendment 294 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. SWelcomes the Commission’s action plan for a comprehensive Union policy on preventing money laundering and terrorism financing, published on 7 May 2020; stresses the need for effective anti- money laundering supervision; not and enforcement; welcomes the Commission’s adoption of the anti-money laundering package of proposals, in particular the proposal to establish a new European authority on anti-money laundering (AMLA) package of proposalas a single supervisor of selected obliged entities and as the host of a coordination and support mechanism for FIUs in the EU; stresses that the new authority AMLA should be equipped with adequate resources;
Amendment 303 #
17 a. Highlights the important role of the banking sector in the battle against tax avoidance; tax fraud, fight against money laundering and terrorism financing; reiterates Parliament’s position that increased audits and ‘know your customer’ requirements are in order for transactions involving countries in Annex I or II of the list of non- cooperative jurisdictions for tax purposes;
Amendment 304 #
Motion for a resolution
Paragraph 17 b (new)
Paragraph 17 b (new)
17 b. Welcomes the ECB’s efforts over the past two years to enhance exchange of information between the SSM and AML/CFT supervisors to better take into account AML aspects in prudential supervision measures;
Amendment 320 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Welcomes the activities of the SRB in 2021, including the further completion of the Single Resolution Fund; takes note of the SRB’s work programme for the coming years, which includes making the effective resolution of all banks under the SRB possible by 2023;
Amendment 322 #
Motion for a resolution
Paragraph 19 a (new)
Paragraph 19 a (new)
19 a. Welcomes the introduction of a backstop to the SRF in 2022, two years earlier than originally envisaged, in the form of a revolving credit line from the ESM, thereby providing a safety net for bank resolutions in the Banking Union; stresses the importance of the SRF in strengthening the crisis management framework and as an important step towards completing the Banking Union;
Amendment 324 #
Motion for a resolution
Paragraph 19 b (new)
Paragraph 19 b (new)
19 b. Supports the revision of the public interest assessment criteria by the SRB so that the choice of the best resolution strategy to be followed in case a bank enters into difficulties is applied in a more consistent and predictable manner; proposes that an alternative liquidation regime for small and medium-sized banks be considered; recalls that the setting of the minimum requirement for own funds and eligible liabilities (MREL) level is decided by the SRB on a case-by-case basis;
Amendment 346 #
Motion for a resolution
Paragraph 21 a (new)
Paragraph 21 a (new)
21 a. Takes note of the statement agreed by the Eurogroup at its meeting of 16 December 2021 which recalls its full political commitment to the Banking Union, and requests the Eurogroup to work in inclusive format to finalise on a consensual basis a time-bound work plan on the way towards its completion; calls on the Eurogroup to make all efforts in order to speed-up the process; recalls that the European Parliament is a co- legislator for the EDIS legislation and it also needs to urgently advance on its work;
Amendment 347 #
Motion for a resolution
Paragraph 21 b (new)
Paragraph 21 b (new)
21 b. Regrets that Member States continue to act outside the Community framework, undermining Parliament’s role as co-legislator; asks to be kept informed of the ongoing discussions at the level of the Eurogroup and of the High-level Working Group on the EDIS;
Amendment 348 #
Motion for a resolution
Paragraph 21 c (new)
Paragraph 21 c (new)
21 c. Stresses the importance of depositors across the Banking Union enjoying the same level of protection for their savings irrespective of their bank's location; points out that the implementation of the DGSD, guaranteeing up to EUR 100 000 in banking deposits, aims to contribute to a higher level of deposit protection but is not sufficient; acknowledges the Commission’s attempt to further strengthen citizens’ confidence in the protection of deposits by introducing an EDIS;
Amendment 350 #
Motion for a resolution
Paragraph 22
Paragraph 22
22. Recalls that the SSM and the SRM operate at EU level, while deposit guarantee schemes (DGSs) are operated at national level; recognises that a European deposit insurance scheme (EDIS) would improveis a key element of the BU's completion and will ensure a greater protection ofor depositors in the EU, reduce home/host challenges and foster deeper integration;
Amendment 364 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Notes the ongoing discussion of various concepts for the EDIS; considers, nonetheless, that any short-term solution found should not prevent the establishment of a fully mutualised EDIS as soon as possible;
Amendment 373 #
Motion for a resolution
Paragraph 24
Paragraph 24
24. ConsiderRecalls that the main obstacles for EDIS are concerns about risks in some banking systems; stressesre has been considerable risk reduction in the banking sector over the past years, also as a result of targeted ECB Banking Supervision policies; supports the analysis of the SSM in this respect stating that "the implementation of credible and effective risk reduction measures could enable an agreement on EDISEDIS should not be linked to further risk reduction benchmarks";