Activities of Derk Jan EPPINK related to 2019/2130(INI)
Shadow reports (1)
REPORT on Banking Union – annual report 2019
Amendments (32)
Amendment 4 #
Motion for a resolution
Citation 9 a (new)
Citation 9 a (new)
- having regard to the European Banking Authority (EBA) Fintech Roadmap conclusions from the consultation on the EBA’s approach to Financial Technology (Fintech) of March 2018,
Amendment 22 #
Motion for a resolution
Recital A
Recital A
A. whereas the process of deepening the Economic and Monetary Union requires a solid Banking Union asdesigned to be an indispensable building block to the euro area’s financial stability, as well as; whereas it does however not require the creation of a mechanism of fiscal stabilisation for the euro area as a whole as Member States with access to financial markets can play such a shock-absorbing role themselves;
Amendment 23 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
A a. whereas the Banking Union encompasses a single supervisory mechanism, a single resolution mechanism, and harmonised national deposit guarantee schemes;
Amendment 24 #
Motion for a resolution
Recital A b (new)
Recital A b (new)
A b. whereas a reinforced Banking Union requires first and foremost accelerated efforts by various Member States to reduce their high levels of non- performing loans (NPLs);
Amendment 28 #
Motion for a resolution
Recital B
Recital B
B. whereas the Banking Union remains incomplete as long as it lacks, at least as long as risks differ greatly between national banking systems, the Banking Union risks being turned into a Transfer Union if complemented with a backstop for the Single Resolution Fund (SRF) and a European Deposit Insurance Scheme (EDIS);
Amendment 35 #
Motion for a resolution
Recital C
Recital C
C. whereas entrusting the ECB with the supervision of systemically important financial institutions has proven to be successfulled to continuing concerns regarding potential conflicts of interest between pursuing an independent monetary policy and prudential supervision;
Amendment 40 #
D. whereas the development of the Single Resolution Mechanism (SRM) was efficientaims at ensuring uniform rules and procedures and a common decision-making process for orderly resolution of failing banks with minimum impact on the real economy in order to fully safeguard public finances from the cost of bailing out banks;
Amendment 43 #
Motion for a resolution
Recital D a (new)
Recital D a (new)
D a. whereas an almost flat yield curve greatly reduces the profitability of banks in one of their most important areas of business activity, the provision of credit for long-term investments;
Amendment 52 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Recalls the progress made regarding the implementation of the Banking Union, namely on risk reducsupervision and resolution; stresses, however, that further progress has to be made, particularly on risk sharing on risk reduction;
Amendment 66 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. WelcomeRegrets the support of the [incoming] President of the European Commission and the President of the ECB for the complereation 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 witha fiscal capacity which is not necessary nor desirable, as Member States with access to financial markets can fulfill an adequate stabilisation function themselves;
Amendment 90 #
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; underlines that the low risk and low interest rate environment has resulted in lower costs for provisions and lossean almost flat yield curve greatly reduces the profitability of banks in one of their most important areas of business activity, the provision of credit for long-term investments; recalls the need to continuously evaluatemonitor the levels of financing to the economy and particularly to SMEs;
Amendment 95 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Underlines the crucial role of the banking sector in channelling funding into sustainable investments and enabling the transition to a climate-neutral economyinvestments that increase the EU's productivity and growth potential, thus contributing to long-term prosperity and well-being;
Amendment 111 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Restatejects the importance ofSBBS proposal for a safe asset in the euro area as a way deemed 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 assetencourages Member States to achieve safe asset status for their sovereign bonds by pursuing sound public finances and productivity-enhancing structural reforms;
Amendment 122 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6 a. Considers that EU Member States should remain fully responsible for their own debt; therefore rejects any proposal for the creation of a European safe asset based on the mutualisation of sovereign debt;
Amendment 124 #
Motion for a resolution
Paragraph 6 b (new)
Paragraph 6 b (new)
6 b. Considers that the introduction of non-zero risk weights for sovereign bonds or measures to address concentration risk, including large exposure limits, would create incentives for banks to better manage their sovereign exposures, helping them to limit the impact of sovereign stress on their balance sheets;
Amendment 126 #
Motion for a resolution
Paragraph 6 c (new)
Paragraph 6 c (new)
6 c. Recalls that standards provided by international fora should avoid regulatory fragmentation and help to promote a level playing field for all internationally active banks;
Amendment 127 #
Motion for a resolution
Paragraph 6 d (new)
Paragraph 6 d (new)
6 d. Calls on the Commission to duly take into account the proportionality principle and the existence of different banking models when assessing the impact of future legislation implementing internationally agreed standards;
Amendment 128 #
Motion for a resolution
Paragraph 6 e (new)
Paragraph 6 e (new)
6 e. Stresses the importance of completing the capital markets union, which will help to channel credit into the real economy, further enable private risk sharing, reduce the need for public risk- sharing and complement funding through banks; highlights in this regard the need for a level playing field that allows businesses to prosper and grow while avoiding disadvantages for SMEs compared to MNEs;
Amendment 129 #
Motion for a resolution
Paragraph 6 f (new)
Paragraph 6 f (new)
6 f. Notes that the CMU will also enhance the issue of securitised products which were the main course of the Great Financial Crisis in 2008. This process should be monitored very carefully by the supervisory agencies;
Amendment 153 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Notes that the ratio of non- performing loans (NPLs) held by significant institutions in the EU has fallen by more than half fromsince the start of ECB banking supervision, in November 2014, to June 2019; considers with concern that the high level of NPLs in some jurisdictions remains a crucial issue that has yet to be solved; underlines the need to protect customers’ rights in the context of NPL transactions;
Amendment 179 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Requests increasedto maintain high transparency standards in banking supervision in order to reinforcensure trust from capital and financial markets, companies and citizens;
Amendment 189 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Notes that innovative financial technologies are profoundly transforming the financial sector, including banking and payment services; highlights the need to address the challenges posed by these new technologies, such as ensuring sustainable business models, a level playing field in terms of regulation and supervision, and cybersecurity; supports technological neutrality as a guiding principle;
Amendment 192 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Notes that there isHighlights the considerable interconnectedness between the ‘shadow banking’ sector, the scale of which remains a matter of concern, 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 to counter threats to financial stability posed by the increasing role of the ‘shadow banking’ system;
Amendment 197 #
Motion for a resolution
Paragraph 14 a (new)
Paragraph 14 a (new)
14 a. Notes that some financial institutions directly supervised by the ECB have been actively facilitating money laundering; believes that prudential and anti-money laundering supervision are equally important; calls for a more aligned approach towards prudential and anti-money laundering supervision;
Amendment 213 #
Motion for a resolution
Paragraph 16
Paragraph 16
Amendment 217 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Recalls its resolution of 8 June 2011 on credit rating agencies: future perspectives; notes that the creation of a European credit rating agency would contribute to increasing competition, reducing information asymmetries and increasing transparency for markets; notes that sustainability ratings based on environmental, social and governance (ESG) criteria are an important complement to the credit risk assessments provided by credit ratings in channelling funds towards investments in sustainable activities;
Amendment 233 #
Motion for a resolution
Paragraph 18 a (new)
Paragraph 18 a (new)
18 a. Calls on the Commission to re- examine on a yearly basis whether the requirements for the application of Article 107(3)(b) TFEU regarding the possibility of State Aid in the financial sector continue to be fulfilled;
Amendment 251 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Urges the operationalisation of the backstop to the SRFRejects any backstop funded by the taxpayer;
Amendment 266 #
Motion for a resolution
Paragraph 22
Paragraph 22
22. UrgOpposes 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;
Amendment 277 #
Motion for a resolution
Paragraph 22 a (new)
Paragraph 22 a (new)
22 a. Emphasises the potential risks of an EDIS, in particular those related to moral hazard;
Amendment 278 #
Motion for a resolution
Paragraph 22 b (new)
Paragraph 22 b (new)
22 b. Points out that risks still differ greatly between different national banking systems, as some of them are still in a very precarious situation; deems, therefore, that the current EDIS proposal is as much about legacy sharing, considering the high level of non- performing loans in some Member States, as it is about risk sharing; highlights, in this respect, that risk reduction should precede any form of legacy sharing and risk sharing; considers that, in the end, a fair deposit insurance system at European level should not harm the level of protection that depositors currently enjoy and can only be established when participating banks are all in a similar, financially stable position;
Amendment 279 #
Motion for a resolution
Paragraph 22 c (new)
Paragraph 22 c (new)
22 c. Highlights that Article 114 seems to be an inappropriate legal basis for the establishment of both the EDIS and the DIF;