29 Amendments of Burkhard BALZ related to 2013/2021(INI)
Amendment 25 #
Motion for a resolution
Recital C
Recital C
C. whereas excessive risk-taking, excessive leverage, inadequate capital and liquidity requirements and the excessive complexitya strong interconnectedness of the overall banking system were at the root of the financial crisis;
Amendment 32 #
Motion for a resolution
Recital D
Recital D
D. whereas the current post-crisis weakness in the structure of EU banks demonstrates the need for reform in order to serve the wider needs of the economyoverall set-up of the EU banking legislation should contribute to the stabilization and credit supply of the European economy, and in particular ensure the access to capital by small and medium-sized enterprises;
Amendment 65 #
Motion for a resolution
Recital G
Recital G
G. whereas the financial crisis demonstraterequirements for risk management and capital and the supervision thereof should be the priority in order to avoid the problem of cross- contamination between banks' retail and investment activities;
Amendment 75 #
Motion for a resolution
Recital H
Recital H
H. whereas all upcoming legislative initiatives by the Commission proposal should provide for a strong, stable and resilient banking sector for the internal market while respecting the diversity of the Member States' banking sectors and taking into account national specificities;
Amendment 88 #
Motion for a resolution
Recital I
Recital I
I. whereas, since it is neither feasible nor desirable to effect a bank separation post- failure, an effective recovery and resolution regime as currently discussed in the legislative procedure on the Recovery and Resolution Directive is needed in order to provide authorities with a credible set of tools, including a bridge bank, so that they can intervene sufficiently early and quickly in an unsound or failing bank to enable its essential financial and economic functions to continue, while minimising the impact on financial stability and ensuring that appropriate losses are imposed on the shareholders and creditors who bore the risk of investing in the institution in question, and not by taxpayers or depositors;
Amendment 104 #
Motion for a resolution
Recital J a (new)
Recital J a (new)
Ja. Whereas there is no evidence from the past that a separation model could positively contribute to avoid a future financial crisis or to diminish the risk of it;
Amendment 163 #
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 unbring forward a legislative proposal on the regulation of shadow banks in order to ensure that the same capital and liquidity standards as well as risk management and governance requirements apply to still unregulated areas as those already set up for the regulated areas of the financial services sector;
Amendment 170 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Considers that the core principle ofevery 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 stimulate economic growth by supporting the provision of credit to the economy, in particular to SMEs and start-ups,legislation must provide greaterstrong resilience against potential financial crises, enhance financial stability, restore trust and confidence in banks and remove risks to public finances and aim to foster economic growth by supporting the provision of credit to the economy, in particular to SMEs and start- ups;
Amendment 223 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Urges the Commission to come forward with a proposal for mandatorynduct a thorough impact assessment of a possible separation of banks' retail and investment activities on the basis of the Report of the High-level Expert Group on reforming the structure of the EU banking sector and to take into account legislation already adopted and initiated at the European level;
Amendment 245 #
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 for the real economy, such as those relating to credit functions, payment systems and deposits; takesassess the necessity and models of a possible separation of bank activities that are vital for the real economy, such as those relating to credit functions, payment systems and deposits and investment banking activities, for all credit institutions in the Single Market, and to also assess potentially adverse consequences of such a separation. The Commission shall take the view that in the event of a bank failure, the ring fencea potential separation model must ensure that the cretail entitydit institution can continues business unaffected by operational problems, financial losses, funding shortages or reputational damage resulting from the resolution or insolvency of the investment entityan entity that is part of the credit institution;
Amendment 263 #
Motion for a resolution
Paragraph 9 a (new)
Paragraph 9 a (new)
9a. Urges the Commission to include in its thorough impact assessment alternatives to separation including higher risk management standards for trading activities and proprietary trading;
Amendment 266 #
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 theseproprietary trading and certain high risk financial activities do not pose a risk to the delivery of ring-fenced retail services;
Amendment 292 #
Motion for a resolution
Paragraph 11 a (new)
Paragraph 11 a (new)
11a. Urges the Commission to consider the need for retail and commercial banks to maintain certain investment banking activities in order to service the real economy or to mitigate own risk positions and to include in its considerations adequate thresholds or product-related exceptions;
Amendment 300 #
Motion for a resolution
Paragraph 12 – introductory part
Paragraph 12 – introductory part
12. Urges the Commission to ensure that separation results inrespect the diversity of the European banking sector and to ensure that a potential separation model shall:
Amendment 310 #
Motion for a resolution
Paragraph 12 – point a
Paragraph 12 – point a
(a) ensure the viability of possible separate legal entities, with separate sources of funding for the bank's retail and investment entities;
Amendment 315 #
Motion for a resolution
Paragraph 12 – point b
Paragraph 12 – point b
(b) not unnecessarily limits on the extent to which the two entities are reliant on each other for funding and/or resources; in particular, there should be no legal basinot be any unnecessary legal obstacles for shifting capital and liquidity from ring-fenced entities to otherbetween separated entities in the group;
Amendment 321 #
Motion for a resolution
Paragraph 12 – point c
Paragraph 12 – point c
Amendment 328 #
Motion for a resolution
Paragraph 12 – point d
Paragraph 12 – point d
(d) not discriminate net and gross large exposure limits for intra-group transactions between ring- fenced and non-ring-fencpossibly separated activities, which are at leastmay be as strict as those for third- party exposure, including strict limits on the exposure of ring-fencedetail activities to the investment entity's riskier activities;
Amendment 344 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Urges the Commission to take into account the ECB's proposal to establish clear and enforceable criteria for separation8 , if potential models of separation are considered8;
Amendment 353 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Underlines the necessity of assessing the systemic risk presented by both the retail and investment entactivities, as well as by the group as a whole, with a view to the application of appropriate capital buffers and liquidity requirements for each entity;
Amendment 365 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Urges the Commission to ensure that the retail entitybank's activity in retail business has sufficient capital and liquid assets to enable it, in the event of the 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;
Amendment 383 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Urges the Commission to ensure that adequate differentiation exists in terms of capital, leverage and liquidity requirements between the investment and retail entactivities, with an emphasis on higher capital requirements for the investment entityactivities;
Amendment 394 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Calls on the Commission to implementconsider the proposals set out in the HLEG's report in the area of corporate governance of separated bankfor its thorough impact assessment of potential separation and alternatives, including a) governance and control mechanisms, b) risk management, c) incentive schemes, d) risk disclosure and e) sanctions;
Amendment 398 #
Motion for a resolution
Paragraph 19
Paragraph 19
Amendment 405 #
Motion for a resolution
Paragraph 20
Paragraph 20
Amendment 418 #
Motion for a resolution
Paragraph 21
Paragraph 21
21. UrgeAsks the Commission to includeconsider strengthening provisions introducingon personal accountability and liability for board members on both sides of the ring fence and at group level;
Amendment 442 #
Motion for a resolution
Paragraph 26
Paragraph 26
26. Urges the Commission to make relevant provisions for national supervisors to have the power to implement full and legal separation of banks;
Amendment 480 #
Motion for a resolution
Paragraph 32
Paragraph 32
Amendment 486 #
Motion for a resolution
Paragraph 32 a (new)
Paragraph 32 a (new)
32a. Asks the Commission to conduct a thorough impact assessment on the recommendations of the HLEG, thereby taking into account legislation already adopted and initiated at the European level, and to also include alternatives to separation models in this assessment, such as higher regulatory requirements for proprietary trading and other high- risk trading activities;