Activities of Frances FITZGERALD related to 2023/2078(INI)
Shadow reports (1)
REPORT on Banking Union - annual report 2023
Amendments (43)
Amendment 6 #
Motion for a resolution
Citation 25 a (new)
Citation 25 a (new)
Amendment 9 #
Motion for a resolution
Recital A
Recital A
A. whereas the Banking Union (BU), which currently encompasses the Single Supervisory Mechanism and the Single Resolution Mechanisms, needs to be supplemented by the creation of a European deposit insurance scheme (EDIS)and a single rule book as its foundation, ensures full alignment between supervision and management of banking crisis, is an integral part of the Union's financial stability, and guarantees in the absence of a European deposit insurance scheme (EDIS) a high minimum standard of deposit protection;
Amendment 16 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
A a. whereas addressing the risks arising from the problem of the overly concentrated sovereign-bank nexus would offer crucial additional stability and security for the European banking system and the customers that use it;
Amendment 20 #
Motion for a resolution
Recital B
Recital B
B. whereas a completed BU would improve the competanking Union would be a positive development for citivzeness and stability of the banking sector and consumer choice and facilitate access to financingthe EU economy, providing the basis for a more stable banking system, reduction of systemic risk, enhanced competition, improved consumer choice, increased opportunities for cross-border banking and access to retail financial services, greater economic investment, better access to funding for households and businesses, and the reduction of costs for banks' customers;
Amendment 25 #
Motion for a resolution
Recital B a (new)
Recital B a (new)
B a. whereas a stable, resilient, dynamic, and competitive banking sector is vital for economic growth, for supporting small and medium businesses, for increasing the possibility of home- ownership, for innovation, for investment, and for the widening of economic opportunity for all;
Amendment 27 #
Motion for a resolution
Recital C
Recital C
C. whereas EU banks have withstood the impact of Russian aggression; whereas they are key for implementing sanctions against Russia; whereas further coordination is needed to avoid circumvention of sanctions; whereas EU banks play a pivotal role in ensuring the ongoing implementation of and compliance with the sanctions imposed by the EU against Russia in response to the invasion;
Amendment 30 #
Motion for a resolution
Recital D
Recital D
D. whereas agreement on a European Deposit Insurance Scheme (EDIS) has not yet been achieved; whereas, following calls from Parliament, the Commission proposed a reform of the crisis management and deposit insurance (CMDI) framework, while recognising that this framework should not be considered as a replacement for a EDIS;
Amendment 35 #
Motion for a resolution
Recital E
Recital E
E. whereas fragmentation and the lack of cross-border consolidation of the EU banking sector is affecting its global competitiveness; whereas, nevertheless, consumer banking in some Member States is still dominated by a small number of banks; whereas the profitability gap between EU and US banks has widened;
Amendment 45 #
Motion for a resolution
Recital F
Recital F
F. whereas a strong banking sector is key for delivering economic growth, financing small and medium-sized enterprises (SMEs) and start-ups and the transition to a green and digitalsupporting the European economy;
Amendment 49 #
Motion for a resolution
Recital G
Recital G
G. whereas although the non- performing loan (NPL) ratio slightly decreased in the first quarter of 2023 despite the pandemic and the Russian aggression against Ukraine, it remains a source of concern;
Amendment 50 #
Motion for a resolution
Recital G
Recital G
G. whereas the banking sector faces further risks following the pandemic and the invasion, particularly in relation to asset quality deterioration; whereas the non-performing loan (NPL) ratio slightly decreased in the first quarter of 2023 despite the pandemic and the Russian aggression against Ukraine;
Amendment 56 #
Motion for a resolution
Recital H a (new)
Recital H a (new)
H a. whereas the digitalisation of finance provides important opportunities for the banking sector and has brought about important technological advances in the EU banking sector through increased efficiency in the provision of banking services and a greater appetite for innovation, it also poses challenges, including with regard to data protection, reputational risks, AML, and consumer protection concerns;
Amendment 57 #
Motion for a resolution
Recital H b (new)
Recital H b (new)
H b. whereas financial institutions rely increasingly on the use of information and communications technology (ICT) which heightens the risk of cyber-attacks; whereas the EU banking sector must increase its cyber resilience to ensure that ICT systems can withstand various types of cyber security threats;
Amendment 58 #
Motion for a resolution
Recital H c (new)
Recital H c (new)
H c. whereas one of the key objectives of the Banking Union is that taxpayers should not bear the cost of remedial action when a bank fails;
Amendment 59 #
Motion for a resolution
Recital H d (new)
Recital H d (new)
H d. whereas the Banking Union should help to address the bank-sovereign nexus or doom loop, which continues to exist; whereas the level of sovereign exposure has been growing in a number of banks; whereas the prudential treatment of sovereign debt should be consistent with international standards;
Amendment 60 #
Motion for a resolution
Recital H e (new)
Recital H e (new)
H e. whereas the EU and the UK have signed a Memorandum of Understanding on Financial Services Regulatory Cooperation, and this cooperative approach should underpin long-term EU- UK relations particularly in the area of banking; whereas the Commission has again extended its temporary permit allowing EU banks and fund managers to use UK clearing houses;
Amendment 75 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Condemns the Russian aggression against Ukraine and its impact on the Ukrainian people, on the EU and elsewhere; calls on banks to continue reducing their exposure to energy intensive corporatesimplementing and complying with the financial sanctions adopted in response to Russia's invasion of Ukraine;
Amendment 80 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Recalls that the banking sector plays a key role in the implementation of sanctions and in monitoring compliance; recalls on the Commission to create a database at EU level to foster coordination among banks, close loopholes in Member States’ implementation of sanctions and assess how EU banks implement sanctionsthat individual Member States are responsible for identifying breaches of EU sanctions and imposing penalties if necessary;
Amendment 82 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Calls on institutionNotes that the total direct banking sector exposures to aRussist the remaining EU banks operating in Russia in preparing an orderly exit from the Russian marketa and Ukraine are limited and that banks are currently reducing their exposures; points out that European banks should prepare for a potential deterioration in asset quality; therefore highlights the importance of prudent risk management and appropriate provisioning, especially at national and EU levels;
Amendment 86 #
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3 a. Recalls that a key goal of the Banking Union is the security of the banking system and the prevention of bank bailouts by taxpayers; recognises that through the establishment of the SSM and the SRM, Europe's banks are now in a strong position to withstand financial shocks; notes, however, that the third pillar of Banking Union (EDIS) is still pending and therefore supports efforts to progress the Banking Union;
Amendment 90 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Asks the Commission to retain the completion of the BU and the Capital Markets Union as key priorities for its next mandate; highlights that both projects offer households and SMEs that are still largely reliant on bank credit to foster investments and job creation access to broader funding, increase financial stability, reduce the impact of economic downturns, fund the transition to a green and digitalsupport the European economy and unlock the EU’s growth potential;
Amendment 96 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Warns that recent increases in the profitability of EU banks are not enough to ensure their competitiveness; highlightsTakes note of the EBA's statement of 13 July 2023 stating that the EU/EEA banking sector shows rising profitability, but asset quality and profitability related risks are looming; takes note of the public assessment by Andrea Enria, Chair of the Supervisory Board of the ECB in September 2023 that the fragmentation limits banks’ ability to undertake strategic investmentsof the euro area banking sector along national lines is still a cause for concern;
Amendment 100 #
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
Amendment 108 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Calls for consolidation in the EU to be promoted by removing regulatory impediments to cross-border mergers; highlights that consolidation would increase the profitability of the EU banking sector and financial stability; takes note that the banking sector is still, by and large, a collection of national banking sectors according to a public statement by Andrea Enria, Chair of the Supervisory Board of the ECB; highlights that consolidation would increase the profitability of the EU banking sector and financial stability; notes however that retail banking services in certain Member States remain dominated by a small number of banks and the consequential reduction of consumer choice for retail banking customers; regrets the remaining barriers to cross-border retail banking services; emphasises the potential for an integrated Banking Union to improve competition and consumer choice in the area of retail banking, including through improved opportunities for the provision of cross-border retail banking services; stresses the benefits of a diversified and competitive banking sector in Europe;
Amendment 111 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6 a. Highlights that the interest rates offered to households and SMEs across the Member States are highly disparate; urges the EU institutions and bodies to consider measures to improve consumer choice and competition and ease the burden on mortgage holders and SMEs in Member States with higher lending rates to ensure that all citizens and businesses can access much-needed capital at fair and competitive rates;
Amendment 112 #
Motion for a resolution
Paragraph 6 b (new)
Paragraph 6 b (new)
6 b. Considers that an integrated Banking Union must be contingent on a well-functioning single market for retail financial services; calls on the Commission to assess the obstacles and barriers that arise for consumers when availing of retail banking products such as mortgage loans on a cross-border basis and to propose solutions to ensure that consumers can benefit from retail financial services across borders; notes, furthermore, the high discrepancy in mortgage interest rates across the Union;
Amendment 113 #
Motion for a resolution
Paragraph 6 c (new)
Paragraph 6 c (new)
6 c. Recognises that the Union's goal of open strategic autonomy should not become a barrier to the benefits of a globally interconnected banking system; cautions against the potential risks of overly focusing on strategic autonomy in a way that could lead to isolationism or protectionism in the banking sector;
Amendment 114 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Highlights thate role of the banking sector should be key in delivering the transition to a digitalised and carbon neutral economy and in channelling funds to renewable energiesystem in supporting the European economy;
Amendment 120 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Regrets the lack of gender balance in the ECB Governing Council, its Supervisory Board and the SRB Board; calls on them to ensure that future appointments close the gap; and more broadly the fact that women continue to be underrepresented in executive positions in the field of banking and financial services; calls on actors to ensure that future appointments close the gap; stresses that gender balance on boards and in the workforce brings both societal and economic returns; calls on financial institutions to regularly update their diversity and inclusion policies and to help foster healthy working cultures which prioritise inclusivity; recalls the European Parliament's 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 132 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Notes that the NPL ratio decreased further; calls for the adoption of the proposal for a AECE Directiverecalls that risk reduction in the banking sector would contribute to a more stable, strong and economic growth oriented Banking Union; calls for the adoption of the proposal for a AECE Directive, which intends to provide banks, under certain conditions, with a mechanism to accelerate the value recovery from secured loans via an extrajudicial enforcement of procedures, in order to develop NPL secondary markets;
Amendment 140 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Highlights that the limited impactagainst the backdrop of the recent failure of midsized US banks proves, the capital and liquidity situation of European banks has continued to remain solid thereby demonstrating the resilience of the EU banking sector; underlines that EU supervisors efficiently addressed risks arising from changes in the interest rate landscape; calls on supervisors to continue assessing exposures to further interest rate hiketakes note of the ongoing assessment by supervisors of exposures to further interest rate hikes; notes that interest rates have increased only for credits but not for deposits;
Amendment 145 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Welcomes the results of the 2023 EU-wide stress test and the fact that EU banks could withstand an economic downturn; notes that the exposure of banks to interest rate risk depends on their asset structure and business model; is concerned about the significant level of sovereign debt on the balance sheets of banks in the Banking Union; emphasises that the issue of regulatory treatment of sovereign exposures requires an in-depth examination within international fora and should be consistent with international standards; recalls that one of the main objectives of the Banking Union is to break the link between bank and sovereign risks;
Amendment 149 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Calls for options for further harmonisation of the EU regulatory framework, promoting convergence between national authorities, and using the supervisory dialogue to assess the evolution of threats to the banking sector;
Amendment 156 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Welcomes the agreement reached at interinstitutional level to implement Basel III standards in the EU; highlightwelcomes that the framework will not increase prudential requirements for banks or damage their competitivenessspecificities of the European banking sector have been taken into account; notes that the implementation of the Basel standards to crypto-assets is still pending;
Amendment 163 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Notes that the non-bank financial intermediary sector is continuing to grow; regrehighlights that different rules for these activities may entail significant risks; calls for an appropriate regulatory approach to shadow banking, for the promotion of fair competition with banks and for the risks stemming from banks’ exposure to these activities to be addressedthis sector;
Amendment 172 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Welcomes the SRB’s approaches to deepening resolution assessments by developing quality control measures for resolution plans and assessing whether these plans can be implemented at short notice; welcomes that overall banks under the SRB’s remit have delivered good progress towards resolvability and in building up loss-absorbing capacity;
Amendment 185 #
20. WelcomNotes the proposal to reform the CMDI framework following calls by Parliament; calls for the scope of resolution to be expanded, clarification of public interest assessments, taxpayers to be insulated from the cost of bank failures, and for the scope of State aid to be limited;
Amendment 192 #
Motion for a resolution
Paragraph 20 a (new)
Paragraph 20 a (new)
20 a. Notes that a failing bank is only sent into resolution, when it cannot go through normal insolvency proceedings without harming public interest or causing financial instability; points out that therefore for most small banks, insolvency will be the default procedure; calls on the Commission to take this aspect into consideration when designing its CMDI proposal;
Amendment 195 #
Motion for a resolution
Paragraph 21
Paragraph 21
21. Highlights the role of the SRB and industry-funded safety nets in protecting taxpayers from paying for bailouts; calls for the introduction of a backstop consisting of a credit line from the European Stability Mechanismfull ratification of the Amending Agreement to the ESM Treaty by all Member States including the establishment of a common backstop to the Single Resolution Fund;
Amendment 199 #
Motion for a resolution
Paragraph 22
Paragraph 22
22. Regrets the lack of progress following the calls by MEPsSupports calls by MEPs negotiating the EDIS proposal in their statement ofn 7 December 2022 for negotiations on EDIS to be resumedan ambitious review of the Crisis Management and Deposit Insurance (CMDI) framework which may help to overcome hurdles to the establishment of EDIS while recognising that this framework should not be considered as a replacement for a EDIS and that the 2015 EDIS proposal should not be withdrawn;
Amendment 203 #
Motion for a resolution
Paragraph 22 a (new)
Paragraph 22 a (new)
Amendment 207 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Welcomes the Commission’s efforts to clarify the scope of depositor protection and increase convergence through a reform of 2014/49/EU on deposit guarantee schemes3 ; warns that the CMDI review cannot be considered a replacement for EDISstresses the importance of the risk proportionality of contributions to DGSs; warns that the absence of a risk-based approach may create risks of moral hazard and free- riding, leading to the subsidisation of speculative business models by conservative ones; _________________ 3 OJ L 173, 12.6.2014, p. 149.
Amendment 220 #
Motion for a resolution
Paragraph 25
Paragraph 25
25. Notes that effective risk reduction is key for EDIS; highlights that the CMDI review provides co-legislators with an opportunity to resume negotiations on EDISemphasises the importance of continued risk reduction measures for the success of the Banking Union;