Activities of Danuta Maria HÜBNER related to 2019/2130(INI)
Shadow reports (1)
REPORT on Banking Union – annual report 2019
Amendments (34)
Amendment 9 #
Motion for a resolution
Citation 20 a (new)
Citation 20 a (new)
- having regard to the report adopted by the European Commission on 30 April 2019 assessing the implementation of the bank recovery and resolution directive (BRRD) and the single resolution mechanism regulation (SRMR),
Amendment 10 #
Motion for a resolution
Citation 22 a (new)
Citation 22 a (new)
Amendment 11 #
Motion for a resolution
Citation 23 a (new)
Citation 23 a (new)
- having regard to the EBA opinions of 8 August 2019 on the eligibility of deposits, coverage level and cooperation between deposit guarantee schemes (DGSs); of 30 October 2019 on deposit guarantee scheme payouts and of [January 2020] on DGS funding and uses of DGS funds,
Amendment 12 #
Motion for a resolution
Citation 24 a (new)
Citation 24 a (new)
- having regard to the study published by the European Commission in November 2019 on options and national discretions under the Deposit Guarantee Scheme Directive and their treatment in the context of a European Deposit Insurance Scheme,
Amendment 58 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Recalls the progress made regarding the implementation of the Banking Union, namely on risk reduction; stresses, however, that further progress has to be mais needed, particularlyboth on risk reduction and on risk sharing;
Amendment 64 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1 a. Stresses the importance of completing the Capital Markets Union, which complements the Bank Union in the financing of the real economy; stresses further that a fully integrated Capital Markets Union together with a fully-fledged Banking Union would allow for private risk sharing, and would additionally strengthen the international role of the euro as well as further enhance the competitiveness of European Markets;
Amendment 71 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Welcomes the support of the [incoming] President of the European Commission and the President of the ECB for the completion of the Banking Union and, more globally, the Economic and Monetary Union, through the creation of a fiscal capacity designed to provide the euro area with an adequate stabilisation function;
Amendment 79 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Welcomes the overall increased resilience of the European banking system, as attested by the EBA’s 20189 Risk Assessment of the European Banking System; welcomes in particular the fact that banks have kept their capital ratios stable and asset quality has improved, as reflected in a further decline of non- performing loans; stresses, however, that profitability levels remain low, the macroeconomic environment is deteriorating and low interest rates persist; further notes that a high level of competition, especially in the area of financial technology (FinTech), as well as higher operational risks due to digitalisation and innovation, and the lack of integration due to remaining segmentation between Member States, are expected to pose further challenges to bank profitability; calls on the banking sector to focus on reshaping their business models and further encourages investments in financial technology;
Amendment 84 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Notes that bank profitability has increased steadily since 2012, with return on equity surpassing 6 % since 2017; uUnderlines that the low risk and low interest rate environment has resulted in lower costs for provisions and losses; recalls the need to continuously evaluate the levels of financing to the economy and particularly to SMEs;
Amendment 119 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Restates the importance ofto intensify the dialogue on a safe asset in the euro area as a way to help stabilise financial markets and allow banks to reduce the exposure of their balance sheets to national sovereign debt; calls on the Commission to submit a legislative proposal for the creation of a true European safe asset;
Amendment 123 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6 a. Notes the importance to consider in parallel the revision of the regulatory treatment of sovereign exposures (RTSE); calls on the Commission to undertake further analytical work and impact assessments building on existing work, with a view to submitting a legislative proposal for the creation of a true European safe asset;
Amendment 131 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Underlines the fact that financial markets are strongly interrelated; stresses the importance of preparedness of banking supervisors for all possible outcomes of Brexit, bearing in mind that this is not a substitute for the preparedness of private actors themselves; welcomes all significant actions and cooperation so far; calls on market participants to complete and effectively implement their preparedness plans, including any relocation plans, to avoid the problem of empty shell companies;
Amendment 134 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7 a. Takes note of the practice of UK firms to establish branches in the European Union in order to continue providing services; stresses in this regard the risk of regulatory arbitrage due to the diverse application of rules in each Member State; considers therefore that further harmonization is required in the authorization and supervision of "third country branches" to avoid regulatory arbitrage and to ensure that risks are appropriately addressed;
Amendment 139 #
Motion for a resolution
Paragraph 7 b (new)
Paragraph 7 b (new)
7 b. Reiterates the commitments that the European Union has undertaken jointly with the United Kingdom under the revised Political Declaration; commits to maintaining close and structured cooperation on regulatory and supervisory matters, at both political and technical level; respecting the Parties' ability to take equivalence decisions in their own interest and adopt or maintain any measure where necessary for prudential reasons;
Amendment 143 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Welcomes the progress made in the banking sector in reducing risk and increasing financial stability; however considers that risks still remain and further progress is required; namely high levels of non-performing loans are still weighing on a number of banks, low bank profitability is a central issue of concern, while banks face a number of risks relating to climate change, IT system issues and cybersecurity, combatting money laundering and terrorism financing, as well as geopolitical challenges including Brexit;
Amendment 148 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Notes that the ratio of non- performing loans (NPLs) held by significant institutions has fallen from 8% in 2014 to 3.7% at the end of March 2019 (or, in terms of volume, from EUR 1 trillion to EUR 587 billion), i.e by more than half from the start of ECB banking supervision, in November 2014, to JuneMarch 2019; welcomes this significant progress; however considers the stock of NPLs is still very high in certain Member States, especially taking into consideration the fact that a potential deterioration of the economic situation may have a negative impact in the level of non-performing exposures; encourages therefore further progress in reducing the stock of NPLs; and also underlines the need to protect customers’ rights in the context of NPL transactions;
Amendment 160 #
Motion for a resolution
Paragraph 9 a (new)
Paragraph 9 a (new)
9 a. Encourages the completion of the currently ongoing legislative work for the development of secondary markets for NPLs, which would allow banks more easily to manage or sell bad loans, and further contribute to address the risks related to high stocks of NPLs in Europe;
Amendment 169 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Notes that work on the implementation of the final Basel III standards has already started; stresses that the Basel Committee on Banking Supervision (BCBS) standards should not be enacted in a wholesale manner into European law without taking proper account of the specific characteristics of the European banking system, the proportionality principles as well as the recent legislative changes, including the Capital Requirement Directive V; recalls its resolution of 23 November 2016 on the finalisation of Basel III and calls on the Commission to act on the recommendations therein when drafting the new legislative proposals;
Amendment 173 #
Motion for a resolution
Paragraph 10 a (new)
Paragraph 10 a (new)
10 a. Notes the importance of the need to assess the adequacy of internal models and to continuously evaluate them, in order to ensure they are reliable and robust; takes note of the findings of the targeted review of internal models (TRIM) carried out by the ECB; calls on banks to improve their use and implementation of their internal models accordingly;
Amendment 174 #
Motion for a resolution
Paragraph 10 b (new)
Paragraph 10 b (new)
10 b. Recalls that the agreement should neither result in significant increase in capital requirements at Union level nor harm the ability of banks to finance the real economy, in particular SMEs;
Amendment 180 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Requests increased transparency in banking supervision, for instance in the outcomes of the supervisory review and evaluation process, in order to reinforce trust from capital and financial markets, companies and citizens; welcomes improved and refined information- sharing between supervisory and resolution institutions;
Amendment 193 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Notes that there is considerable interconnectedness between the ‘shadow banking’ sector‘non-bank financial intermediation’ and the ‘traditional’ banking sector, which raises concerns of systemic risk given the lack of appropriate supervision of the first; calls, in this regard, for the establishment of a macroprudential toolkit and the further operationalization of existing tools to counter threats to financial stability posed by the increasing role of the ‘shadow banking’ systemnon-bank financial intermediation’ system; further stresses the need to address the associated risks that derive from liquidity transformation, risk-taking and leverage affecting the sector more broadly;
Amendment 198 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Welcomes the agreement on the exchange of information between the ECB and the AML/CFT supervisors; recalls its serious concern about regulatory and supervisory fragmentation in the AML/CFT area, which is ill-suited to supervise the increasing cross-border activity in the EU; invites the Commission to further carry out impact assessments on the ML/TF risks that may arise from vulnerabilities created by the increasing use of new technologies by credit and financial institutions, and the rapid spread of virtual currencies in view of the absence of a common regulatory regime and the anonymity associated with those currencies; calls on the Commission to start working on the overhaul of the EU AML framework and legislation to further harmonise the AML/CFT rulebook, and effectively address the risks posed by cross-border illegal activity to the integrity of the EU financial system and the security of EU citizens;
Amendment 209 #
Motion for a resolution
Paragraph 15 a (new)
Paragraph 15 a (new)
15 a. Calls the Commission to consider in that regard wether an EU body should be vested with the task to independently supervise the implementation of a Single Rulebook;
Amendment 210 #
Motion for a resolution
Paragraph 15 b (new)
Paragraph 15 b (new)
15 b. Considers that a coherent and harmonised set of rules is crucial for the proper functioning of the Banking Union; calls therefore on the Commission to consider, where appropriate, to promote the Single Rulebook, in areas of particular importance to ensure an unimpeded and effective banking resolution and supervision; notes in particular the complexity of carrying out the important suitability assessment of the top management of banks due to the highly diverse transposition of the Capital Requirements Directive; therefore encourages the integration of the "fit and proper" requirements into the Single Rulebook; and considers that harmonisation as much as possible is required in areas where national options and discretions apply, including in the areas of insolvency law, bank licence withdrawals and the imposition of moratorium;
Amendment 211 #
Motion for a resolution
Paragraph 15 c (new)
Paragraph 15 c (new)
15 c. Notes the important role early intervention measures can play in preventing bank failures and crisis; notes, however, that the requirements for the use of early intervention measures overlap with some of the standard intervention measures of the ECB; stresses that in such instances, standard intervention measures are favoured; and therefore considers that such an overlap should be removed by sufficiently clarifying the legal basis for each instrument, in order to ensure the gradual application of the measures;
Amendment 214 #
Motion for a resolution
Paragraph 16
Paragraph 16
Amendment 224 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. Welcomes the fact that the Single Resolution Board has not been required to take resolution action in 2019; invites the Commission to reflect on the appropriate follow-up to this issue as identified in its own report on the implementation of BRRD and SRMR of April 2019; urges the Commission to review whether the legislation is adequate to ensure that all banks could, if needed, be resolved without the need for taxpayers’ money; invites the Commission to follow up on the Financial Stability Board review of the ‘too big to fail’ legreflect on the potential further harmonisation of specific aspects of existing national insolvency laws, including the triggers to initiate insolvency and resolution, and to assess to what extent such further harmonislation and consider if legislation to separate deposit-taking and investmentis necessary to ensure a consistent and effective application of the crisis management framework; takes the view that the experience of the Federal Deposit Insurance Corporation in the United States offers useful lessons with respect to tools to tackle bank crises, including the ranking of deposits in the creditor hierarchy in bank ing should once again be consideredsolvency proceedings and in particular, the pari passu ranking of insured and uninsured deposits; calls upon the Commission to assess and develop a clearer definition of the least- cost principle under the DGSD;
Amendment 234 #
Motion for a resolution
Paragraph 18 a (new)
Paragraph 18 a (new)
18 a. Takes note of continued discussions on the completion of the Banking Union within the High-level Working Group on EDIS established in January 2019 to report to the Eurogroup, including further improvements to the crisis management framework for banks; calls upon the Commission to take account of interactions between a further evolution of the crisis management framework with policy developments in relation to deposit insurance, starting with the ongoing review of the Deposit Guarantee Scheme Directive (DGSD);
Amendment 244 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Is concerned by the lack of mechanisms in the Banking Union to ensure that emergency liquidity can be provided in the event of a resolution and calls on the Commission to attempt to address this gap without further delay;
Amendment 249 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Urges the operationalisaearliest possible introduction of the backstop to the SRFingle Resolution Fund and its swift operationalisation;
Amendment 253 #
Motion for a resolution
Paragraph 21
Paragraph 21
21. Stresses that banks need to be able to operate across borders while managing their capital and liquidity at a consolidated level, in order to diversify their risks and address any lack of profitability; highlights that rules should allow for greater flexibility for the parent company in this regard, while specifying thatproviding for credible and enforceable mechanisms that enable, in the event of a crisis, the parent company should(resolution entity) to provide capital, MREL, and liquidity to the subsidiary located in a different the host country within the Banking Union; considers however that certain safeguards should be provided; notes to that effect the possibility to introduce a support mechanism at the level of the intra-group parent and certain liquidity waivers; reiterates the positive effect of harmonising certain parts of insolvency law;
Amendment 259 #
Motion for a resolution
Paragraph 21 a (new)
Paragraph 21 a (new)
21 a. Invites the Commission to follow up on the Financial Stability Board review of the ‘too big to fail’ legislation and consider if legislation to separate deposit-taking and investment banking should once again be considered;
Amendment 267 #
22. Urges the completion of the Banking Union through the creation of a fully mutualised EDIS, to protect depositors against banking disruptions and to ensure confidence among depositors and investors across the Banking Union; welcomes the support of the [incoming] President of the Commission and the President of the ECB for the establishment of EDIS; Urges the Council to resume negotiations on EDIS as soon as possible, while ensuring a coherent framework with the Deposit Guarantee Scheme Directive, in order to deliver on the objective to enhance financial stability;