32 Amendments of Gunnar HÖKMARK related to 2013/2021(INI)
Amendment 101 #
Motion for a resolution
Recital J a (new)
Recital J a (new)
Ja. whereas enhanced competition in the European banking industry is highly desirable; whereas the aggregated amount of legislative and regulatory requirements on banks, although indeed warranted for many reasons, risk to create barriers to entry and, therefore, facilitate the cementation of the current banking groups' dominant positions;
Amendment 103 #
Motion for a resolution
Recital J a (new)
Recital J a (new)
Ja. whereas the EU needs growth and jobs as businesses need capital and credit; EU banking sector plays an important role to initiate growth, therefore any reforms for the EU banking sector that would impede growth should be avoided;
Amendment 107 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Welcomes the HLEG's analysis and recommendations on banking reform and considers them a sound basis for initiating reforms. However, considers that legislative initiatives currently processed or recently adopted, such as the Single supervisory mechanism, the capital and prudential requirements regulation and directive, the Bank recovery and resolution directive, the Deposit guarantee scheme, MiFID and MiFIR, the Market abuse regulation and directive, the European markets infrastructure regulation, the Alternative investment fund managers' directive, the Financial transaction tax, the Insurance mediation directive, the Insurance guarantee schemes, the Investor compensation schemes, Omnibus II, Solvecny II, UCITS II, the Credit rating agencies legislation and Short-selling legislation, should be implemented and allowed to come into operation and that the outcome thereof should be taken as a basis for the assessment of what might be needed in the future;
Amendment 115 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1a. Stresses that many of the issues identified in the HLEG's report are addressed by currently processed and already adopted legislative initiatives, most importantly by the proposal for a Directive on bank recovery and resolution;
Amendment 117 #
Motion for a resolution
Paragraph 1 b (new)
Paragraph 1 b (new)
1b. Highlights that HLEG's analysis shows that no particular business model did better than others during the financial crisis of 2008-09; underlines that this insight must be a point of departure of the analysis for further initiatives;
Amendment 124 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Takes the view that while current proposals for reforms of EU banking sector rules (including the Capital Requirements Directive and Regulation, the Recovery and Resolution Directive, the Single Supervisory Mechanism, the Deposit Guarantee Schemes Directive and shadow banking initiatives) are vital, a more fundamental reform of the banking structure is essential, and complementary to the other proposalsshould be adopted, implemented and allowed to come into operation before the need for further legislative initiatives is assessed;
Amendment 152 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Insists that the Commission's impact assessment include a thorough assessment of the cost to both public finances and financial stability of the failure of an EU- based bank during the current crisis, together with information on the nature of the EU's current universal banking model, including the size and balance sheets of the retail and investment activities of all universal banks operating in the EU, broken down by individual bank and country; reminds in this regard of the funding requirements stipulated for RRD and DGS and underlines the important contribution these will make in enhancing financial stability;
Amendment 157 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Reminds the Commission of the warning issued by the European Banking Authority and the European Central Bank (ECB) that financial innovation can undermine the objectives of structural reforms, and iconsistders that structural reforms be subject to periodic review7 the eventual need for structural reforms might be considered once the current and recently concluded legislative procedures have come into operation7;
Amendment 166 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Urges the Commission to ensure that the core principles of reform detailed in paragraph 7 also apply to the shadow banking sector and unregulated areas of the financial services sector if a structural review was to be initiated;
Amendment 171 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Considers that the core principle of banking reform must be to deliver a safe, stable and efficient banking system that serves the needs of the real economy, customers and consumers; takes the view that structural reform must stimulateight in fact hamper economic growth by supportreducing the provisionoverall supply of credit to the economy, in particular to SMEs and start-ups, provide gre which often imply risks to those who lend to them, but also risking to reduce rather resilience against potential financial crises, restore trust anthan increase the resilience of the banking system as funding sources will be less diversified, and increase risks to public finances. Therefore, is of the opinion that an eventual structural reform must be based confidence in banks and remove risks to public financ a clear analysis whether it would increase or decrease risk, whether it would be compatible with bail-in and in the perspective of current and recently concluded legislative initiatives;
Amendment 182 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6a. Remembers that one of the main reasons why the situation in Cyprus has been so difficult to deal with is the fact that the banking system was more or less solely dependent on retail deposits for its funding. Highlights that had there been a larger share of unsecured debt-holders in the funding mix of Cypriot banks, the extraordinarily unfortunate debacle of bailing in insured depositors most probably would not have taken place;
Amendment 187 #
Motion for a resolution
Paragraph 6 b (new)
Paragraph 6 b (new)
6b. Acknowledges the potential problems posed by large and overly complex banking groups. Is of the opinion that such concerns are most effectively mitigated through a credible recovery and resolution framework whereby it is ensured shareholders and bank creditors will be the ones to bear the losses from bank failures;
Amendment 188 #
Motion for a resolution
Paragraph 6 c (new)
Paragraph 6 c (new)
6c. Underlines that banks which are solely dependent on deposits and retail activities, thereby reducing the possible scope for bail-in, might pose a risk to public finances, as was clearly seen in Cyprus;
Amendment 189 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Considers that an effective banking system must deliver a change in banking culture in order to reduce complexity, enhance competition, limit interconnectedness between risky and commercial activities, improve corporate governance, create a responsible remuneration system, allow effective bank resolution and recovery, reinforce bank capital and deliver credit to the real economy. Reiterates there are multiple ways of achieving these goals and that some 20 legislative initiatives have already been proposed to address these very issues;
Amendment 214 #
Motion for a resolution
Subheading 2
Subheading 2
B. Key elements of eventual structural reform
Amendment 216 #
Motion for a resolution
Paragraph 8
Paragraph 8
Amendment 237 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8a. Underlines that such proposal might hinder the functioning of the whole banking sector of the EU, distort competition and pose far-reaching negative effects on the economic growth;
Amendment 241 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Urges the Commission to come forward with a proposal for such mandatory separation through the establishment of a thorough, transparent and credible ‘ring fence’ around bank activities that are vital ntribute to the conclusion of already existing legislative initiatives before the real economy, such as those relating to credit functions, payment systems and deposits; takes the view that in the event of a bank failure, the ring fence must ensure that the retail entity continues business unaffected by operational problems, financial losses, funding shortages or reputational damage resulting from the resolution or insolvency of the investment entityneed for further legislative acts is assessed. Reminds the Commission that a number of legislative proposals have been in deadlock for a long time and that the physical capacity of the Parliament and Council to professionally deal with all outstanding dossiers is already significantly over-stretched;
Amendment 265 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Urges the Commission to ensure that trading activities do not benefit from implicit guarantees, the use of insured deposits or taxpayer bailouts and that these activities do not pose a risk to the delivery of ring-fenced retail servie implicit guarantee of the banking system in its entirety is reducesd;
Amendment 293 #
Motion for a resolution
Paragraph 12
Paragraph 12
Amendment 337 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12a. Stresses the crucially important role of banks as market makers in order to uphold liquidity and, thereby, reduce the funding costs for firms, public authorities and sovereigns; reminds of the significant technical difficulties in defining what is a "pure" market making activity; is concerned that with an inferior definition of market making activities, structural separation would have considerably detrimental effect to the smooth functioning of capital markets;
Amendment 343 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Urges the Commission to, if structural separation eventually was to be considered, take into account the ECB's proposal to establish clear and enforceable criteria for separation8 ;
Amendment 362 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Urges the Commission to ensure that the retail entitybank has sufficient capital and liquid assets to enable it, in the event of ithe bank's failure, to maintain depositors' access to funds, to protect the essential services of the ring-fenced arm from the risk of disorderly failure and to prioritise paying out depositors in a timely fashion and avoid adverse effects on financial stability;
Amendment 375 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Urges the Commission to ensure that adequate differentiation exists in termrequirements ofn capital, leverage and liquidity requirements between the investment and retail entities, with an emphasis on higher capital requirements for the investment entiexist for the bank in its entirety;
Amendment 396 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Calls on the Commission to implement, if a future assessment shows there is a need for structural separation, to consider the proposals set out in the HLEG's report in the area of corporate governance of separated banks, including a) governance and control mechanisms, b) risk management, c) incentive schemes, d) risk disclosure and e) sanctions;
Amendment 401 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Urges the Commission to ensure that separation delivers independent decision- making and governance for each entity, with separate executive and non-executive board members and whereby neither side of the ring fence is owned by or reports to the otherIs of the opinion that the recently adopted directive on prudential supervision of credit institutions and investment firms contains an appropriate framework of requirements on the governance of banks, including their executive and non-executive board members;
Amendment 406 #
Motion for a resolution
Paragraph 20
Paragraph 20
Amendment 416 #
Motion for a resolution
Paragraph 21
Paragraph 21
21. UrgeReminds the Commission to include provisions introducinghat the personal accountability and liability for board members on both sides of the ring fence and at groupis regulated at Member State level;
Amendment 438 #
Motion for a resolution
Paragraph 26
Paragraph 26
Amendment 452 #
Motion for a resolution
Paragraph 28
Paragraph 28
28. Stresses that effective competition is necessary in order to ensure a well- functioning and efficient banking sector which funds the real economy by reducing the cost of banking services; Is concerned that the aggregated amount of legislative and regulatory requirements on banks, although warranted for many reasons, risk to pose significant barriers to entry and, therefore, facilitate the cementation of the current banking groups' dominant positions, thereby increasing the dependence of the financial system on a limited number of big players;
Amendment 465 #
Motion for a resolution
Paragraph 29
Paragraph 29
29. Urges the Commission and the Member States to work together to promote greater diversification and competition of the EU's banking sector by encouraging and facilitating more consumer-oriented banking, for example through cooperative, building society, peer-to-peer lending and saving bank models; stresses that fully functioning Single Market is the key;
Amendment 481 #
Motion for a resolution
Paragraph 32
Paragraph 32
32. Calls on the Commission to bring forward the necessaryStresses that structural reforms as outlined in this e HLEG-report, which, while maintaining the integrity of the internal market, respect the diversity of national banking systems and ensure Member States' ability to reinforce them where appropriaould risk to reduce the diversity of national as well as the European banking system;