2020/2122(INI) Banking Union - annual report 2020
Lead committee dossier:
Progress: Procedure completed
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | ECON |
HÜBNER Danuta Maria ( EPP)
|
MAVRIDES Costas ( S&D),
NAGTEGAAL Caroline ( Renew),
PETER-HANSEN Kira Marie ( Verts/ALE),
GRANT Valentino ( ID),
JURZYCA Eugen ( ECR),
SCHIRDEWAN Martin ( GUE/NGL)
|
Lead committee dossier:
Legal Basis:
RoP 54
Legal Basis:
RoP 54Subjects
Events
2022/02/02
EC - Commission response to text adopted in plenary
Documents
2021/10/07
EP - Results of vote in Parliament
Documents
2021/10/07
EP - Decision by Parliament
Details
The European Parliament adopted by 495 votes to 100, with 91 abstentions, a resolution on the Banking Union - Annual Report 2020.
Members pointed out that the Banking Union has put in place the institutional framework for further market integration, through the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM), but that the European Deposit Insurance Scheme (EDIS), the third pillar of the Banking Union, is still pending.
The benefits of the Banking Union
Members welcomed the entry of Bulgaria and Croatia into the Banking Union, as well as the discussions in Denmark and Sweden on the possibility of these two countries entering the Banking Union. While banks have been more resilient in responding to the current crisis because they are better capitalised and less leveraged than a decade ago, Members stated that the banking sector is characterised by certain structural inefficiencies that may be exacerbated by the current crisis and that more needs to be done to reduce the high levels of non-performing loans that persist in some financial institutions.
Parliament found that a fully operational Banking Union, together with a fully integrated and strong capital markets union, would contribute to the resilience of the European economy, support the functioning of Economic and Monetary Union and strengthen the international role of the euro. In this context, it stressed the need for a level playing field to ensure that SMEs are not disadvantaged in their access to finance and the need to carefully monitor the issuance of securitised products.
The Commission is called upon to make further efforts to better align financial market activity with sustainability objectives and social, environmental and governance criteria and to continue its efforts in the field of sustainable finance.
The resolution underlined the exceptional nature of the pandemic and the temporary nature of the relief measures put in place as an initial containment measure to limit economic damage. Stressing that economic support measures must remain tailored to current and expected economic circumstances, Members called for a well -orchestrated, gradual and targeted shift from pandemic relief to recovery support tools , including reforms in the Member States through the national recovery and resilience reform plans, as an early or uncoordinated withdrawal of the temporary measures could see the re-emergence of the pre-crisis deficiencies and vulnerabilities of the banking sector.
Members welcomed the acceleration of the digital transition in the banking sector and called on the ECB to further examine the implications of a digital currency for the banking sector and its potential impact on financial stability. They welcomed the objective of a digital euro operating alongside cash as a secure and competitive digital payment instrument.
Supervision
Stressing the importance of improving the transparency and predictability of European banking supervision, Members noted that sound credit risk management should remain a key priority for the SSM.
The resolution recognised that the COVID-19 crisis increases the risk of a further build-up of non-performing loans which could reach levels as high as EUR 1.4 trillion by the end of 2022 . It stressed that ensuring the proper and timely management of deteriorated asset quality on banks’ balance sheets will be key to preventing a build-up of non-performing loans in the short term.
Members are concerned that as Member States sell increasing volumes of sovereign bonds, the share of sovereign debt on banks' balance sheets is also increasing, potentially aggravating the sovereign-bank nexus. Members believe that Next Generation EU will offer high-quality, low-risk European assets by allowing a rebalancing of sovereign bonds on banks' balance sheets.
The report stressed the importance of protecting consumer rights , particularly regarding unfair and aggressive terms and practices, bank fees, transparency of product costs, profitability and risks. It also stressed the importance of strong internal governance structures within banks as well as stress testing to build confidence. Additional supervisory pressure would be needed to ensure that financial institutions properly disclose climate and environmental risks.
Resolution
Members trust that the introduction of a backstop to the SRF in 2022, two years earlier than originally envisaged, in the form of a revolving credit line from the European Stability Mechanism (ESM) will strengthen the crisis management framework and is an important step towards completing the Banking Union.
The resolution welcomed the fact that, although the SRB was not required to take resolution measures in 2020, it nevertheless collaborated with the SSM in cases close to the crisis. It stressed the need to facilitate the liquidation of banks in whose resolution the SRB or the national resolution authority assess that there is no public interest. It also suggested that resolution should work for more banks, especially medium-sized banks.
Deposit insurance
Members stressed the importance of depositors across the Banking Union enjoying the same level of protection for their savings wherever their bank is located. They stressed that the implementation of the DGSD, guaranteeing up to EUR 100 000 in banking deposits , aims to contribute to a higher level of deposit protection.
The Commission is called on to take further steps to relaunch the negotiations on the EDIS through a roadmap-based work plan.
Documents
2021/10/06
EP - Debate in Parliament
Documents
2021/07/26
EP - Committee report tabled for plenary
Details
The Committee on Economic and Monetary Affairs adopted an own-initiative report by Danuta Maria HÜBNER (EPP, PL) on Banking Union - Annual Report 2020.
Members pointed out that the Banking Union has put in place the institutional framework for further market integration, through the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM), but that the European Deposit Insurance Scheme (EDIS), the third pillar of the Banking Union, is still pending.
The benefits of the Banking Union
Members welcomed the entry of Bulgaria and Croatia into the Banking Union, as well as the discussions in Denmark and Sweden on the possibility of these two countries entering the Banking Union. While banks have been more resilient in responding to the current crisis because they are better capitalised and less leveraged than a decade ago, Members stated that the banking sector is characterised by certain structural inefficiencies that may be exacerbated by the current crisis and that more needs to be done to reduce the high levels of non-performing loans that persist in some financial institutions.
The report found that a fully operational Banking Union, together with a fully integrated and strong capital markets union, would contribute to the resilience of the European economy, support the functioning of Economic and Monetary Union and strengthen the international role of the euro. In this context, it stressed the need for a level playing field to ensure that SMEs are not disadvantaged in their access to finance.
The Commission is called upon to make further efforts to better align financial market activity with sustainability objectives and social, environmental and governance criteria and to continue its efforts in the field of sustainable finance.
Members considered that a strengthened approach to cooperation between the SSM and the CRU is particularly important to ensure that appropriate action is taken in a timely manner. They stressed the vital contribution to addressing the crisis of temporary measures such as public guarantee schemes, moratoria on loan repayments for borrowers in financial difficulty, the central banks’ liquidity programmes and the ECB’s targeted longer-term refinancing operations (TLTRO), asset purchase programme (APP) and pandemic emergency purchase programme (PEPP).
The report stressed that these extraordinary temporary measures should be accompanied by measures to mitigate market and economic distortions. The Commission and national and European supervisory authorities are urged to prepare for a likely deterioration in the quality of banks' assets.
Members welcomed the acceleration of the digital transition in the banking sector, which should be pursued in full respect of consumers' rights and should safeguard financial inclusion.
The report welcomed the ECB's work on the digital euro and called on the ECB to further analyse the implications of a digital currency for the banking sector and its potential impact on financial stability. It welcomed the objective of a digital euro operating alongside cash as a secure and competitive digital payment instrument.
Supervision
Stressing the importance of improving the transparency and predictability of European banking supervision, Members noted that sound credit risk management should remain a key priority for the SSM.
The report recognised that the COVID-19 crisis increases the risk of a further build-up of non-performing loans which could reach levels as high as EUR 1.4 trillion by the end of 2022. It stressed that ensuring the proper and timely management of deteriorated asset quality on banks’ balance sheets will be key to preventing a build-up of non-performing loans in the short term.
Members recognise the role played by banks in supporting businesses and the real economy during the pandemic in some Member States. Banks should diligently assess the financial soundness and viability of businesses, proactively engage with distressed debtors to manage their exposures, and offer financing and viable restructuring or suitable alternative options to viable sectors and companies, especially SMEs, to ensure that defaults are prevented where possible and that businesses and consumers are not at risk of over-indebtedness.
The report stressed the importance of protecting consumer rights , particularly regarding unfair and aggressive terms and practices, bank fees, transparency of product costs, profitability and risks. It also stressed the importance of strong internal governance structures within banks as well as stress testing to build confidence.
Resolution
Members trust that the introduction of a backstop to the SRF in 2022, two years earlier than originally envisaged, in the form of a revolving credit line from the European Stability Mechanism (ESM) will strengthen the crisis management framework and is an important step towards completing the Banking Union.
The report welcomed the fact that, although the SRB was not required to take resolution measures in 2020, it nevertheless collaborated with the SSM in cases close to the crisis. It stressed the need to facilitate the liquidation of banks in whose resolution the SRB or the national resolution authority assess that there is no public interest. It also suggested that resolution should work for more banks, especially medium-sized banks.
Deposit insurance
Members stressed the importance of depositors across the Banking Union enjoying the same level of protection for their savings wherever their bank is located. They stressed that the implementation of the DGSD, guaranteeing up to EUR 100 000 in banking deposits, aims to contribute to a higher level of deposit protection.
The Commission is called on to take further steps to relaunch the negotiations on the EDIS through a roadmap-based work plan.
Documents
2021/07/13
EP - Vote in committee
2021/05/26
EP - Amendments tabled in committee
Documents
2021/05/26
EP - Amendments tabled in committee
Documents
2021/04/21
EP - Committee draft report
Documents
2020/09/17
EP - Committee referral announced in Parliament
2020/04/23
EP - HÜBNER Danuta Maria (EPP) appointed as rapporteur in ECON
Documents
- Commission response to text adopted in plenary: SP(2021)735
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament: T9-0415/2021
- Debate in Parliament: Debate in Parliament
- Committee report tabled for plenary: A9-0256/2021
- Amendments tabled in committee: PE693.617
- Amendments tabled in committee: PE693.618
- Committee draft report: PE658.703
- Committee draft report: PE658.703
- Amendments tabled in committee: PE693.617
- Amendments tabled in committee: PE693.618
- Commission response to text adopted in plenary: SP(2021)735
Activities
- Heidi HAUTALA
Plenary Speeches (3)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- Danuta Maria HÜBNER
Plenary Speeches (1)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- Caroline NAGTEGAAL
Plenary Speeches (1)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- Piernicola PEDICINI
Plenary Speeches (1)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- Sirpa PIETIKÄINEN
Plenary Speeches (1)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- Alfred SANT
Plenary Speeches (1)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- Pedro SILVA PEREIRA
Plenary Speeches (1)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- Paul TANG
Plenary Speeches (1)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- Pedro MARQUES
Plenary Speeches (1)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- Gunnar BECK
Plenary Speeches (1)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- Mislav KOLAKUŠIĆ
Plenary Speeches (1)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- Ivan Vilibor SINČIĆ
Plenary Speeches (1)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- Eugen JURZYCA
Plenary Speeches (1)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- Antonio Maria RINALDI
Plenary Speeches (1)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- Marek BELKA
Plenary Speeches (1)
- 2021/10/06 Banking Union - annual report 2020 (debate)
- Michiel HOOGEVEEN
Plenary Speeches (1)
- 2021/10/06 Banking Union - annual report 2020 (debate)
Votes
Union bancaire – rapport annuel 2020 - Banking Union - annual report 2020 - Bankenunion – Jahresbericht 2020 - A9-0256/2021 - Danuta Maria Hübner - Après le § 1 - Am 1 #
2021/10/06 Outcome: -: 552, +: 90, 0: 42
The Left
NI
PPEA9-0256/2021 - Danuta Maria Hübner - Après le § 1 - Am 2 #
2021/10/06 Outcome: -: 587, +: 81, 0: 16
A9-0256/2021 - Danuta Maria Hübner - Après le § 5 - Am 3 #
2021/10/06 Outcome: -: 531, +: 123, 0: 30
A9-0256/2021 - Danuta Maria Hübner - Après le § 7 - Am 8 #
2021/10/06 Outcome: -: 515, +: 143, 0: 24
A9-0256/2021 - Danuta Maria Hübner - § 8/1 #
2021/10/06 Outcome: +: 543, 0: 72, -: 69
A9-0256/2021 - Danuta Maria Hübner - § 8/2 #
2021/10/06 Outcome: +: 511, -: 146, 0: 27
A9-0256/2021 - Danuta Maria Hübner - Après le § 19 - Am 9 #
2021/10/06 Outcome: -: 532, +: 142, 0: 8
A9-0256/2021 - Danuta Maria Hübner - Après le § 19 - Am 10 #
2021/10/06 Outcome: -: 540, +: 138, 0: 4
A9-0256/2021 - Danuta Maria Hübner - § 20/1 #
2021/10/06 Outcome: +: 644, -: 27, 0: 13
A9-0256/2021 - Danuta Maria Hübner - § 20/2 #
2021/10/06 Outcome: +: 514, -: 146, 0: 24
A9-0256/2021 - Danuta Maria Hübner - § 38 - Am 11 #
2021/10/06 Outcome: -: 522, +: 143, 0: 17
A9-0256/2021 - Danuta Maria Hübner - § 39 - Am 4 #
2021/10/06 Outcome: -: 554, +: 97, 0: 33
A9-0256/2021 - Danuta Maria Hübner - § 45 - Am 5 #
2021/10/06 Outcome: -: 503, +: 166, 0: 15
A9-0256/2021 - Danuta Maria Hübner - § 45/1 #
2021/10/06 Outcome: +: 543, -: 87, 0: 54
A9-0256/2021 - Danuta Maria Hübner - § 45/2 #
2021/10/06 Outcome: +: 590, 0: 58, -: 36
A9-0256/2021 - Danuta Maria Hübner - § 46 - Am 12 #
2021/10/06 Outcome: -: 525, +: 141, 0: 16
A9-0256/2021 - Danuta Maria Hübner - § 53/1 #
2021/10/06 Outcome: +: 545, -: 119, 0: 20
A9-0256/2021 - Danuta Maria Hübner - § 53/2 #
2021/10/06 Outcome: +: 524, -: 118, 0: 42
A9-0256/2021 - Danuta Maria Hübner - § 66 #
2021/10/06 Outcome: +: 536, -: 135, 0: 11
A9-0256/2021 - Danuta Maria Hübner - Considérant M - Am 6 #
2021/10/06 Outcome: -: 536, +: 138, 0: 8
A9-0256/2021 - Danuta Maria Hübner - Considérant W - Am 7 #
2021/10/06 Outcome: -: 544, +: 86, 0: 52
Union bancaire – rapport annuel 2020 - Banking Union - annual report 2020 - Bankenunion – Jahresbericht 2020 - A9-0256/2021 - Danuta Maria Hübner - Proposition de résolution (ensemble du texte) #
2021/10/07 Outcome: +: 495, -: 100, 0: 91
| Amendments | Dossier |
| 383 |
2020/2122(INI)
2021/05/27
ECON
383 amendments...
Amendment 1 #
Motion for a resolution Citation 11 a (new) — having regard to the ECON Chair's letter to the President of the Eurogroup of 22 July 2020,
Amendment 10 #
Motion for a resolution Citation 43 c (new) — having regard to the ECB´s Targeted Review of Internal Models, published April 2021,
Amendment 100 #
Motion for a resolution Paragraph 3 3. Considers that banks’ response to the current crisis demonstrates that the regulatory reforms in the past decade, as well as the institutional set-up, have resulted in better-capitalised and less- leveraged banks, proving that equity and not debt is the solution to solve crises and build up resilience against economic and financial shocks;
Amendment 101 #
Motion for a resolution Paragraph 3 3. Considers that banks’ response to the current crisis demonstrates that the
Amendment 102 #
Motion for a resolution Paragraph 3 3. Considers that banks’ response to the current crisis demonstrates that the regulatory reforms in the past decade, as well as the institutional set-up, have resulted in better-capitalised and less- leveraged banks; considers that the full weight of the recovery from the crisis should not fall on the banks, but instead that a strong capital markets union should be promoted that contributes to the resilient relaunch and recovery of the European economy;
Amendment 103 #
Motion for a resolution Paragraph 3 a (new) 3 a. Finds that the RRF may provide impetus for the completion of the Banking Union; highlights the crucial role of the banking sector in providing access to credit and channelling available funding into the real economy, in particular into sustainable and socially responsible investments;
Amendment 104 #
Motion for a resolution Paragraph 3 a (new) 3 a. Notes that the full implementation of the Banking Union is necessary to deliver better conditions for the financing of the European economy, both to households and companies, still largely reliant on bank credit to foster investment and job creation;
Amendment 105 #
Motion for a resolution Paragraph 3 a (new) 3 a. Stresses the stabilising effect of small- and medium-sized banks to the EU`s economy in times of crisis;
Amendment 106 #
Motion for a resolution Paragraph 3 b (new) 3 b. Observes that a fully-fledged Banking Union, together with fully integrated Capital Markets Union would support the functioning of the Economic and Monetary Union and a strengthened international role of the euro;
Amendment 107 #
Motion for a resolution Paragraph 3 b (new) 3 b. Considers it necessary that a proportional approach is pursued and entrenched in all further steps to improve the Banking Union;
Amendment 108 #
Motion for a resolution Paragraph 3 a (new) 3a. Takes the view that supervision continues to focus too much on credit risk, underestimating the importance of financial risk;
Amendment 109 #
Motion for a resolution Paragraph 3 b (new) 3b. Calls on the supervisory authorities to monitor financial risks closely, in particular those linked to the shadow banking system, and to take appropriate steps wherever necessary; calls on the supervisory authorities, further, to monitor closely aspects linked to the professionalism of and generational change in governance, in particular in the smallest banks;
Amendment 11 #
Motion for a resolution Citation 43 d (new) — having regard to the answer of Commission Vice-President Dombrovskis to written question E-003152/2019,
Amendment 110 #
Motion for a resolution Paragraph 4 Amendment 111 #
4. Considers that while the good relationship between the SSM and the SRB has been fundamental from the inception of the system, a strengthened approach to cooperation between the two pillars is particularly important in the current context to ensure appropriate and timely action;
Amendment 112 #
Motion for a resolution Paragraph 4 a (new) 4 a. Stresses the need to increase transparency of the SRB by making Memoranda of Understanding publicly available;
Amendment 113 #
Motion for a resolution Paragraph 5 5.
Amendment 114 #
Motion for a resolution Paragraph 5 5. Underlines the vital contribution to addressing the crisis of public guarantee schemes, moratoria on loan repayments for borrowers in financial difficulty, the central banks’ liquidity programmes and the ECB’s targeted longer-term refinancing operations (TLTRO), asset purchase programme (APP) and pandemic emergency purchase programme (PEPP);
Amendment 115 #
Motion for a resolution Paragraph 5 5. Underlines the vital contribution to addressing the crisis of public guarantee schemes, moratoria on loan repayments for borrowers in financial difficulty,
Amendment 116 #
Motion for a resolution Paragraph 5 5. Underlines the vital contribution to addressing the crisis of public guarantee schemes, moratoria on loan repayments for borrowers in financial difficulty, the central banks’ liquidity programmes and the ECB’s targeted longer-term refinancing operations (TLTRO) and pandemic emergency purchase programme (PEPP); therefore all the above mentioned measures should be kept in place as long as necessary and they should be only gradually relieved;
Amendment 117 #
Motion for a resolution Paragraph 5 5. Underlines the vital contribution to addressing the crisis of public guarantee schemes, moratoria on loan repayments for borrowers in financial difficulty, the central banks’ liquidity programmes and the ECB’s targeted longer-term refinancing operations (TLTRO) and pandemic emergency purchase programme (PEPP); therefore all the above mentioned measures should be kept in place as long as necessary and they shall be only gradually changed;
Amendment 118 #
Motion for a resolution Paragraph 5 5. Underlines the vital contribution to addressing the crisis of public guarantee schemes, moratoria on loan repayments for borrowers in financial difficulty, the central banks’ liquidity programmes and the ECB’s targeted longer-term refinancing operations (TLTRO) and pandemic emergency purchase programme (PEPP); emphasises, therefore, that all the measures referred to above should remain in force for as long as necessary and should be withdrawn gradually;
Amendment 119 #
Motion for a resolution Paragraph 5 5. Underlines the vital contribution to addressing the crisis of public guarantee schemes, moratoria on loan repayments for borrowers in financial difficulty, the central banks’ liquidity programmes and the ECB’s targeted longer-term refinancing operations (TLTRO) and pandemic
Amendment 12 #
Motion for a resolution Recital A A. whereas
Amendment 120 #
Motion for a resolution Paragraph 5 5. Underlines the vital contribution to addressing the crisis of public guarantee schemes, moratoria on loan repayments for borrowers in financial difficulty, the central banks’ liquidity programmes and the ECB’s targeted longer-term refinancing operations (TLTRO) and pandemic emergency purchase programme (PEPP); warns in this regard over the risk of overshooting the inflation target due to loose monetary policy which could affect the functioning of Banking Union;
Amendment 121 #
Motion for a resolution Paragraph 5 a (new) 5 a. Deplores that PEPP has had an overwhelming influence on the narrowing of yield spreads and has ensured that southern European government bonds from highly indebted Member States were viewed by investors as less risky5a, which shows that PEPP is disproportionately directed towards highly indebted euro area Member States, and that the ECB is thereby guaranteeing the liquidity of highly indebted euro countries; _________________ 5aLeibniz Centre for European Economic Research, https://www.zew.de/presse/pressearchiv/di e-stabilitaet-der-eurozone-haengt-am- tropf-der-ezb
Amendment 122 #
Motion for a resolution Paragraph 5 b (new) 5 b. Recalls that The Targeted Long- Term Refinancing Operations (TLTROs) further zombify the European economy and deteriorate the real income prospects, especially of young Europeans;
Amendment 123 #
Motion for a resolution Paragraph 5 c (new) 5 c. Calls on the ECB to end its stimulus package immediately, including phasing out TLTRO;
Amendment 124 #
Motion for a resolution Paragraph 5 a (new) 5 a. Points out that the TLTRO III programme with funding rates below the deposit facility rate entails a direct subsidization of euro area institutions by the ECB; notes that these subsidies have materialised in the form of increased net interest income in the annual reports for 2020 of many euro area banks; deplores the fact that the size of these subsidies is not monitored and published by the ECB; insists that any extraordinary measures of this kind should be accompanied by measures to mitigate distortions to markets and the economy;
Amendment 125 #
Motion for a resolution Paragraph 5 a (new) 5a. Calls on the EBA to defer, at least until 31 December 2021, the suspension of the rules on default classification, and at the same time to raise from 1% to 5% the diminished financial obligation threshold, as laid down in paragraph 51 of the EBA Guidelines on the definition of default (EBA/GL/2016/07), in order to enable banks to assess the value of loans correctly, so that healthy firms are not erroneously categorised as bad payers;
Amendment 126 #
Motion for a resolution Paragraph 5 a (new) 5 a. Is concerned that loose monetary policy contributes to the lower long-term economic growth and creates an incentive to delay the implementation of the necessary structural reforms;
Amendment 127 #
Motion for a resolution Paragraph 6 6.
Amendment 128 #
Motion for a resolution Paragraph 6 6.
Amendment 129 #
Motion for a resolution Paragraph 6 6.
Amendment 13 #
Motion for a resolution Recital A A. whereas overall, the banking sector has responded to the COVID-19 pandemic with resilience, mostly founded on the regulatory reforms enacted since the global
Amendment 130 #
Motion for a resolution Paragraph 6 6.
Amendment 131 #
Motion for a resolution Paragraph 6 6.
Amendment 132 #
Motion for a resolution Paragraph 6 6. Notes the ‘quick fix’ to the Capital Requirements Regulation31 extending transitional arrangements in order to support banks’ lending capacity32 ; moreover, calls for a 2 years freeze of the calendar of minimum loss coverage requirements set in the “NPL backstop Regulation” and of supervisory expectation; this is key for taking into account that such Regulation could introduce a perverse incentive for banks towards starting judicial procedures for credit recovery and collateral enforcement as soon as possible, rather than granting forbearance measures and supporting business restructuring; in addition, it is worth noting that in many countries civil courts have been closed or their activity significantly reduced and collateral enforcement procedures have been postponed or delayed thus will increasing the length of recovery actions, with negative impacts on the internal workout and/or NPLs values on primary and secondary markets; _________________
Amendment 133 #
Motion for a resolution Paragraph 6 6. Notes the ‘quick fix’ to the Capital Requirements Regulation31 extending transitional arrangements in order to support banks’ lending capacity32
Amendment 134 #
Motion for a resolution Paragraph 6 6. Notes the ‘quick fix’ to the Capital Requirements Regulation31 extending transitional arrangements in order to support banks’ lending capacity32 ; believes that a 2 year freeze of the calendar of minimum loss coverage requirements set in the CRR and of supervisory expectation should be examined, considering that in many countries civil courts have been closed or their activity significantly reduced and collateral enforcement procedures have been postponed or delayed; underlines that such regulation could introduce a perverse incentive for banks towards starting judicial procedures for credit recovery and collateral enforcement also for those borrowers who experience temporary difficulties in payments; encourages the application of forbearance measures to firms and households, and calls for the removal of all regulatory obstacles to their application; _________________ 31Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1). 32Regulation (EU) 2020/873 of the European Parliament and of the Council of 24 June 2020 amending Regulations (EU) No 575/2013 and (EU) 2019/876 as regards certain adjustments in response to the COVID-19 pandemic (OJ L 204, 26.6.2020, p. 4).
Amendment 135 #
Motion for a resolution Paragraph 6 6. Notes the ‘quick fix’ to the Capital Requirements Regulation31 extending transitional arrangements in order to support banks’ lending capacity32 ; calls, furthermore, for a two-year freeze on the timing of the minimum loss coverage requirements set out in the ‘NPL backstop Regulation’ and of supervisory expectations; _________________ 31Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.06.2013, page 1). 32 Regulation (EU) 2020/873 of the European Parliament and of the Council of 24 June 2020, amending Regulations (EU) No 575/2013 and (EU) 2019/876 as regards certain adjustments in response to the COVID-19 pandemic (OJ L 204, 26.6.2020, page 4).
Amendment 136 #
Motion for a resolution Paragraph 6 a (new) 6 a. Notes that in December 2020 the SSM issued a statement changing its previous recommendation by lifting the outright ban on dividends payments and share buy backs and allowing distributions for banks with robust capital trajectories; underlines the danger that an application of distribution restrictions only to banks with weak capital positions can signal these weaknesses to the market, thus leading to further drops in the banks' share valuations;
Amendment 137 #
Motion for a resolution Paragraph 6 a (new) 6 a. Stresses the need to further strengthen the financial sector through the completion of the Capital Markets Union which will help to channel credit into the real economy;
Amendment 138 #
Motion for a resolution Paragraph 6 b (new) 6 b. Stresses the “unchartered waters” when it comes to credit risk exposure, as the repeatedly extended payment moratoria conceal the full extent of non- performing loans, a situation, recently described by the SSM chair as “flying blind"; considers, therefore, the lift of the dividends distributions ban as an inappropriate response to the increasing uncertainty about the health of the European banking sector; supports that the SSM should extend the currently applicable restrictions on distributions beyond September 2021 as long as fundamental uncertainties about the economic recovery and the quality of bank assets persist;
Amendment 139 #
Motion for a resolution Paragraph 6 c (new) 6 c. Notes with concern the heterogenous application of IFRS 9 with regard to loss provisioning by institutions revealed during the Covid-19 pandemic; calls on the SSM to take measures to ensure the consistent application of reporting standards across institutions in the Union;
Amendment 14 #
Motion for a resolution Recital A A. whereas overall, the banking sector has responded to the COVID-19 pandemic with resilience,
Amendment 140 #
Motion for a resolution Paragraph 6 d (new) 6 d. Calls on the SSM to provide an estimate of the level of distributions (dividends and share buy backs) as well as variable remuneration undertaken in the first and second trimester of 2021 by banking institutions within its remit and assess their impact on banks’ capital position;
Amendment 141 #
Motion for a resolution Paragraph 7 7. Welcomes the ESAs’
Amendment 142 #
Motion for a resolution Paragraph 7 7. Welcomes the ESAs’ recommendation of 31 March 2021 to prepare for an expected deterioration of asset quality; invites the Commission as well as national and European supervisory authorities to prepare for such a deterioration of asset quality;
Amendment 143 #
Motion for a resolution Paragraph 7 a (new) 7 a. Is concerned about the high levels of legacy non-performing exposures many institutions had even before the pandemic;
Amendment 144 #
Motion for a resolution Paragraph 7 a (new) 7 a. Is concerned that the European Banking Authority has not delivered its proposals for reducing the administrative burden for small institutions within the deadline set by co-legislators in the banking package; asks for more proportionality in banking regulation;
Amendment 145 #
Motion for a resolution Paragraph 8 8.
Amendment 146 #
8. Calls for a well-orchestrated, gradual shift from pandemic relief to recovery support tools, taking into consideration at every step the current conditions;
Amendment 147 #
Motion for a resolution Paragraph 8 8. Calls for a well-orchestrated shift from pandemic relief to recovery support tools, as a nearly or uncoordinated withdrawal of the temporary measures could bring back pre-crisis deficiencies and vulnerabilities of the banking sector, including increasing banks’ exposures to credit risk, potentially affecting their capital position, and undermine recovery and growth;
Amendment 148 #
Motion for a resolution Paragraph 8 8. Calls for a well-orchestrated shift from pandemic relief to recovery support tools, without which the outcome of the recovery might be compromised;
Amendment 149 #
Motion for a resolution Paragraph 8 8. Calls for a well-orchestrated shift from pandemic relief to recovery support tools; stresses that support measures should become more targeted as the recovery progresses;
Amendment 15 #
Motion for a resolution Recital A A. whereas overall, the banking sector has responded to the COVID-19 pandemic with resilience,
Amendment 150 #
Motion for a resolution Paragraph 8 8. Calls for a well-orchestrated shift from pandemic relief to recovery support tools; takes the view that the pandemic relief was an effective initial response to the crisis, but that it must gradually give way to recovery-support instruments which enable the Member States to implement reforms which make for a strong and consolidated exit from the COVID-19 crisis;
Amendment 151 #
8 a. Stresses the crucial role of the banking sector in channelling funding into sustainable investments and enabling the transition to a climate-neutral economy; underlines the importance of the Taxonomy regulation for such an endeavour; stresses the need to expand the current scope of the Taxonomy regulation by notably including a classification system for unsustainable activities (‘brown taxonomy’);
Amendment 152 #
Motion for a resolution Paragraph 8 b (new) 8 b. Calls on the Commission to pursue its efforts in the field of sustainable finance by adopting the remaining delegated acts of the EU Taxonomy and Disclosure Regulation and applying, inter alia, a robust “do not significantly harm” methodology; is concerned that the ESAs deviated from Level 1 text, when developing regulatory technical standards on the Disclosure Regulation in particular as regards forward looking metrics for climate emissions, the DNSH principle and key performance indicators regarding the extent to which investments are aligned with the Taxonomy regulation; urges the Commission to adopt Delegated acts in line with the Level 1 mandate;
Amendment 153 #
Motion for a resolution Paragraph 8 c (new) 8 c. Reminds that the European Green Deal shall be a cornerstone of EU policies in the upcoming years; underlines the role of private finance and investments in supporting the climate transition, as established in the Sustainable Europe Investment Plan; welcomes recent and upcoming legislative action that incentivises investments in line with the European Climate Law, including the EU taxonomy climate delegated act and the establishment of a EU green bond standard;
Amendment 154 #
Motion for a resolution Paragraph 8 c (new) 8 c. Calls for the establishment of a binding and credible EU-wide green bond standard, based on a strong link with the EU taxonomy and the definition of a framework favourable to the development of these bonds in order to enhance the transparency, effectiveness and credibility of sustainable investments;
Amendment 155 #
Motion for a resolution Paragraph 8 d (new) 8 d. Welcomes the revision of the NFRD (Corporate Sustainability Reporting) and the forthcoming Sustainable Corporate Governance Initiative as way to ensure consistency, comparability and reliability of sustainability information across the financial and non-financial sector;
Amendment 156 #
Motion for a resolution Paragraph 8 e (new) 8 e. Regrets that credit rating agencies do not properly and systematically include ESG risks in their rating methodologies; considers the lack of adequate integration of environmental and transition risks in credit rating models a significant methodological flaw; calls on the ESMA to make full use of its supervisory powers to ensure credit rating agencies’ models properly account for all ESG risks;
Amendment 157 #
8 a. Stresses that completing the Economic and Monetary Union requires the completion of the Banking Union with a European Deposit Insurance Scheme, a more developed and safe Capital Markets Union, a permanent budgetary instrument, a revised fiscal framework and more effective cooperation and coordination on tax affairs;
Amendment 158 #
Motion for a resolution Paragraph 8 b (new) 8 b. Underlines the importance of completing the Capital Markets Union, which complements the Banking Union in the financing of the real economy; stresses, furthermore, that a fully integrated Capital Markets Union together with a fully-fledged Banking Union would allow for public and private risk sharing, and would moreover strengthen the international role of the euro as well as further enhancing the competitiveness of European markets and promoting sustainable private investment; highlights, in this regard, the need for a level playing field that avoids disadvantages for SMEs in terms of access to finance, and the need to carefully monitor the issuance of securitised products;
Amendment 159 #
Motion for a resolution Paragraph 9 9.
Amendment 16 #
Motion for a resolution Recital A A. whereas overall, the banking sector has responded to the COVID-19 pandemic with resilience,
Amendment 160 #
Motion for a resolution Paragraph 9 9. Notes the accelerated pace of digitalisation in the banking sector,
Amendment 161 #
Motion for a resolution Paragraph 9 9. Notes the accelerated pace of digitalisation in the banking sector, while
Amendment 162 #
Motion for a resolution Paragraph 9 9. Notes the accelerated pace of digitalisation in the banking sector, while pointing to the insufficient level of investment and regulation in this area;
Amendment 163 #
Motion for a resolution Paragraph 9 9. Notes the accelerated pace of digitalisation in the banking sector, while pointing to the insufficient level of investment in this area; welcomes the Digital Finance Package launched by the Commission in 2020; takes the view that its successful implementation will hinge on public-private cooperation in the areas of innovation and investment; takes the view that the digitalisation of the European banking sector offers the Union an opportunity to attract foreign capital and compete on the global market;
Amendment 164 #
Motion for a resolution Paragraph 9 a (new) 9 a. Underlines the importance to secure technological neutrality in regulatory and supervisory approaches; highlights the need to address challenges posed by the use of new innovative technologies related to banking supervision and the oversight of payment systems; strongly supports the European Commission’s new Digital Finance Strategy, which will facilitate the scaling of innovative technology cross-border whilst ensuring high standards of consumer protection and financial sector resilience;
Amendment 165 #
Motion for a resolution Paragraph 9 a (new) 9 a. 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 avail of retail financial services on a cross-border basis; furthermore, notes the high discrepancy in mortgage interest rates across the Union;
Amendment 166 #
Motion for a resolution Paragraph 9 a (new) 9 a. Welcomes the Commission’s Proposal for a Corporate Sustainability Reporting Directive (CSRD); calls on the Commission to deploy further efforts to better align financial market activity with sustainability objectives and environmental, social and governance criteria, including the development of sustainability ratings based on ESG criteria;
Amendment 167 #
Motion for a resolution Paragraph 10 10.
Amendment 168 #
Motion for a resolution Paragraph 10 10. Welcomes the ECB’s
Amendment 169 #
Motion for a resolution Paragraph 10 10. Welcomes the ECB’s report on the digital euro and the outcome of its public consultation and expects further analysis of the implications for the banking sector, particularly its impact on banks’ products such as current accounts and its potential to outcompete financial services corporations as intermediaries for processing transactions;
Amendment 17 #
Motion for a resolution Recital A A. whereas overall, with certain exemptions, the banking sector has responded to the COVID-19 pandemic with resilience, mostly founded on the regulatory reforms enacted since the global financial crisis and further supported by extraordinary public policy relief measures and capital conservation practices;
Amendment 170 #
Motion for a resolution Paragraph 10 10. Welcomes the ECB’s report on the digital euro and the outcome of its public consultation and expects further analysis of the implications for the banking sector with a view to striking a balance between global competitiveness, market integration and security; is aware of the value a digital currency can add in strengthening the international role of the euro;
Amendment 171 #
Motion for a resolution Paragraph 10 10. Welcomes the ECB’s report on the digital euro and the outcome of its public consultation and expects further analysis of the implications for the banking sector; points out that, depending on the precise design features of a digital euro, the impact on the banking sector might be significant affecting areas such as payments, banks' ability to perform maturity transformation and overall lending capacity; invites the ECB to consider those aspects as well as potential financial stability implications in the future work on the digital euro;
Amendment 172 #
Motion for a resolution Paragraph 10 a (new) 10 a. Recalls that cash is anonymous and it is impossible for banks or central banks to control the direct expenditure of cash holders, which safeguards their privacy; recalls that CBDC is not anonymous, since central banks will be able to trace consumer behaviour and spending patterns of all citizens; recalls that CBDC would give central banks absolute control over the transactions of citizens, meaning that the ECB will have both the power and the technical capacity to control transactions, including disabling certain transactions; expresses deep concern over giving the ECB such far-reaching powers, which are obviously not within its mandate;
Amendment 173 #
Motion for a resolution Paragraph 11 11. Notes th
Amendment 174 #
Motion for a resolution Paragraph 11 11. Notes th
Amendment 175 #
Motion for a resolution Paragraph 11 11. Notes th
Amendment 176 #
Motion for a resolution Paragraph 11 11. Notes the postponement of the implementation of the Basel III reforms and awaits the Commission’s upcoming proposal on the implementation of the finalised standards,
Amendment 177 #
Motion for a resolution Paragraph 11 11. Notes the postponement of the
Amendment 178 #
Motion for a resolution Paragraph 11 11. Notes the postponement of the implementation of the Basel III reforms and awaits the Commission’s upcoming proposal on the implementation of the finalised standards, taking into account the specificities of the EU banking sector and the necessity to introduce measures aimed at increasing banks' lending to the real economy;
Amendment 179 #
Motion for a resolution Paragraph 11 11. Notes the postponement of the implementation of the Basel III reforms and awaits the Commission’s upcoming proposal on the implementation of the finalised standards, taking into account the specificities of the EU banking sector
Amendment 18 #
Motion for a resolution Recital A a (new) A a. whereas the need remains to limit the damage due to failures within the current structure of the banking system, structural reforms aimed at reducing a priori the systemic risks due to interconnections and complexity, underpinning the “too big to fail problem”, would be much more effective;
Amendment 180 #
Motion for a resolution Paragraph 11 11. Notes the postponement of the implementation of the Basel III reforms and awaits the Commission’s upcoming proposal on the implementation of the finalised standards, taking into account the specificities of the EU banking sector; stresses the concern that the reform should not hamper EU banks’ ability to finance the recovery, and the digital and environmental transition in Europe; underlines that in order to uphold its economic sovereignty and strategic autonomy, the EU needs strong and competitive European banks to offer wholesale banking services to corporates of all sizes;
Amendment 181 #
Motion for a resolution Paragraph 11 11. Notes the postponement of the implementation of the Basel III reforms and awaits the Commission’s upcoming proposal on the implementation of the
Amendment 182 #
Motion for a resolution Paragraph 11 11. Notes the postponement of the implementation of the Basel III reforms and awaits the Commission’s upcoming proposal on the implementation of the finalised standards, taking into account the specificities of the EU banking sector; stresses that even though Basel recommendations should be adapted, when appropriate, to European specificities, the EU capital requirements regulation must be Basel compliant;
Amendment 183 #
Motion for a resolution Paragraph 11 11. Notes the postponement of the implementation of the Basel III reforms and awaits the Commission’s upcoming proposal on the implementation of the finalised standards, taking into account the specificities of the EU banking sector; stresses that the Basel III reform should not hamper the ability of European banks to finance the recovery and the digital and environmental transition in Europe; stresses that, in order to safeguard its economic sovereignty and strategic autonomy, the EU needs strong and competitive European banks to offer wholesale banking services to businesses of all sizes;
Amendment 184 #
Motion for a resolution Paragraph 12 12. Notes the interdependencies between banks and central counterparties (CCPs), pointing the ambiguous questions arising in connection to the responsibilities of banks and CCPs for potential end-of waterfall losses and the interaction of their prudential requirements;
Amendment 185 #
Motion for a resolution Paragraph 12 12. Notes the interdependencies between banks and central counterparties (CCPs) and increasingly with crypto- assets and digital finance;
Amendment 186 #
Motion for a resolution Paragraph 12 12. Notes the interdependencies between banks and central counterparties (CCPs); highlights that there is considerable interconnectedness between the non-bank financial intermediation sector and the ‘traditional’ banking sector, which raises concerns of systemic risk given the lack of appropriate regulation and supervision of the former;
Amendment 187 #
Motion for a resolution Paragraph 12 12. Notes the interdependencies between banks and central counterparties (CCPs), highlights in this regard the risks of excessive reliance on UK CCPs and welcomes the measures setting the criteria for classifying third-country CCPs adopted by the COM during the past year;
Amendment 188 #
Motion for a resolution Paragraph 12 a (new) 12 a. Calls on the Commission to consider to what extent the growing importance of non-bank financial intermediation and its interconnection with the banking sector require additional macroprudential tools, namely the development of ex ante liquidity management tools and careful analysis of existing leverage measures; highlights that the recent pandemic shock illustrated that the non-bank sector can amplify market volatility and price dislocation, particularly when market liquidity comes under pressure;
Amendment 189 #
Motion for a resolution Paragraph 13 Amendment 19 #
Motion for a resolution Recital A a (new) A a. whereas the Banking Union is open to all EU Member States; whereas Bulgaria and Croatia have joined ERM II and entered the Banking Union;
Amendment 190 #
Motion for a resolution Paragraph 13 13.
Amendment 191 #
Motion for a resolution Paragraph 13 13. Regrets the failure to e
Amendment 192 #
Motion for a resolution Paragraph 13 13. Regrets the failure to ensure full gender balance in EU financial institutions and bodies
Amendment 193 #
Motion for a resolution Paragraph 13 13. Regrets the failure to ensure full gender balance in EU financial institutions and bodies and calls on all institutions and bodies to prioritise achieving full gender balance as soon as possible, including through providing gender balanced shortlists of candidates for all future appointments requiring Parliament's consent, including the ECB and the EU's top financial institutions;
Amendment 194 #
Motion for a resolution Paragraph 13 13. Regrets the failure to ensure full gender balance in EU financial institutions and bodies
Amendment 195 #
Motion for a resolution Paragraph 13 13. Regrets the failure to ensure full gender balance in EU financial institutions and bodies; calls on the governments of the Member States, the European Council, the Eurogroup and the Commission to actively work towards gender balance in their upcoming proposals for shortlists and appointments, endeavouring to include at least one female and one male candidate per nomination procedure; reiterates its resolution on respect for the gender balance principle in forthcoming lists of candidates;
Amendment 196 #
Motion for a resolution Paragraph 13 13. Regrets the failure to ensure full gender balance in EU financial institutions and bodies; stresses that the Eurogroup missed the opportunity to secure gender balance in the ECB Governing Council, as it did not consider any female candidates in the selection procedure and refused to present a gender-balanced shortlist of candidates; reiterates the Parliament’s commitment not to take into account lists of candidates where the gender balance principle has not been respected;
Amendment 197 #
Motion for a resolution Paragraph 13 a (new) 13 a. Condemns all forms of discrimination and stresses that competence and moral integrity should be the only and mandatory criteria for any job position in EU financial institutions and bodies;
Amendment 198 #
Motion for a resolution Paragraph 13 a (new) 13 a. Calls on the Commission to review the eligibility criteria with the objective of attracting a higher number of applications from women;
Amendment 199 #
Motion for a resolution Paragraph 13 a (new) 13 a. Highlights the opportunities a fully-fledged banking union creates for banks to spread risks on their balance sheet; regrets that banks continue to have excessive exposure to their national sovereign debt, risking self-fulfilling prophecies that can weaken banks and governments; seeks to create upper-limits on the exposure of banks to one single sovereign; underlines that such a limit should be set sufficiently high in the short-term and slowly decrease over time;
Amendment 2 #
Motion for a resolution Citation 20 a (new) — having regard to the statement agreed by the Eurogroup at its meetings of 30 November,
Amendment 20 #
Motion for a resolution 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 200 #
Motion for a resolution Paragraph 14 a (new) 14 a. Appreciates the role of European banking supervision in ensuring temporary capital and operational relief to banks, so they can continue to provide financial support to businesses and households and absorb losses, while maintaining high quality of the supervision;
Amendment 201 #
Motion for a resolution Paragraph 14 a (new) 14 a. Notes with concern that the Bulgarian member of the SSM’s Supervisory Board has in the past served as CFO of First Investment Bank, which suffers from serious governance problems;
Amendment 202 #
Motion for a resolution Paragraph 15 15.
Amendment 203 #
Motion for a resolution Paragraph 15 15.
Amendment 204 #
Motion for a resolution Paragraph 15 a (new) 15 a. Highlights the importance of enhancing transparency and predictability of EU banking supervision and commends in this regard the recent practice of publishing bank specific Pillar 2 requirements; believes that individual requirements make SSM expectations more reliable and facilitate more informed investors’ decisions;
Amendment 205 #
Motion for a resolution Paragraph 15 b (new) 15 b. Expects that recent changes to the SSM organisational structure, while simplifying the system and incorporating technological innovation, will facilitate more risk focused supervision and internal institutional collaboration;
Amendment 206 #
Motion for a resolution Paragraph 15 c (new) 15 c. Finds merit in the November 2020 SSM analysis of potential vulnerabilities of banking sector under different scenarios, regarding effects of the shock on asset quality and capital;
Amendment 207 #
Motion for a resolution Paragraph 16 16. Notes that
Amendment 208 #
Motion for a resolution Paragraph 16 16. Notes that sound management of credit risk should remain
Amendment 209 #
Motion for a resolution Paragraph 16 16. Notes that sound management of credit risk should remain
Amendment 21 #
Motion for a resolution Recital A b (new) A b. whereas a more stable, competitive and convergent Economic and Monetary Union requires a solid Banking Union and a more developed and safe Capital Markets Union; whereas the completion of the Banking Union would be a vital contributor to the international perception of the euro and its increased role in global markets;
Amendment 210 #
Motion for a resolution Paragraph 16 16. Notes that sound management of credit risk should remain one of the key priorit
Amendment 211 #
Motion for a resolution Paragraph 17 17. Stresses that ensuring proper and timely management of deteriorated exposures will be key to preventing a build-up of non-performing loans (NPLs)
Amendment 212 #
Motion for a resolution Paragraph 17 17.
Amendment 213 #
Motion for a resolution Paragraph 17 17. Stresses that ensuring proper and timely management of deteriorated exposures will be key to preventing a build-up of non-performing loans (NPLs)
Amendment 214 #
Motion for a resolution Paragraph 17 17. Stresses that ensuring proper and timely management of deteriorated exposures will be key to preventing a build-up of non-performing loans (NPLs) in the short term; asks for more efforts to come forward with ambitious solutions to the issue of sovereign exposures and a substantial reductions of the stock of non- performing loans, especially in the lights of the expiring debt-moratoria in the Member States on loans for SMEs that have suffered tremendously under the national and regional lockdown measures;
Amendment 215 #
Motion for a resolution Paragraph 17 17. Stresses that ensuring proper and timely management of deteriorated exposures will be key to preventing a build-up of non-performing loans (NPLs) in the short term; notes in this regard the Commission communication on “Tackling non-performing loans to enable banks to support EU households and businesses”; regrets that such communication lacks any concrete proposals on ensuring borrowers’ protection; calls on the Commission to ensure a high level of consumer protection in the upcoming revision of the Consumer Credit Directive, including standards of debt collection and forbearance measures;
Amendment 216 #
Motion for a resolution Paragraph 17 17. Stresses that ensuring proper and timely management of deteriorated exposures will be key to preventing a build-up of non-performing loans (NPLs) in the short term; calls for the extension until December 2024 of Article 500 CRR on massive disposals of NPLs, in order to avoid disproportionate effects on banks’ capital, affecting negatively banks’ lending to the real economy;
Amendment 217 #
Motion for a resolution Paragraph 17 17. Stresses that ensuring proper and timely management of deteriorated exposures will be key to preventing a build-up of non-performing loans (NPLs) in the short term; calls for the extension until December 2024 of article 500 CRR on massive disposals of NPLs, in order to avoid disproportionate effects on banks’ capital, affecting negatively banks’ lending to the real economy;
Amendment 218 #
Motion for a resolution Paragraph 17 17. Stresses that ensuring proper and
Amendment 219 #
Motion for a resolution Paragraph 17 17.
Amendment 22 #
Motion for a resolution Recital A a (new) A a. whereas a more stable, competitive and convergent Economic and Monetary Union requires a Banking Union with a European Deposit Insurance Scheme, a Capital Markets Union, a permanent Budgetary Instrument, a revised fiscal framework and more effective cooperation and coordination on tax affairs;
Amendment 220 #
Motion for a resolution Paragraph 17 17. Stresses that ensuring proper and timely management of deteriorated exposures will be key to preventing a build-up of non-performing loans (NPLs) in the short term; advices the Member States to make further efforts to address this issue;
Amendment 221 #
Motion for a resolution Paragraph 17 17. Stresses that ensuring proper and timely management of deteriorated exposures will be key to preventing a further build-up of non-performing loans (NPLs) in the short term;
Amendment 222 #
Motion for a resolution Paragraph 17 a (new) 17 a. Underlines that banks should comply with applicable prudential rules and supervisory guidance on NPLs and maintain operational capacity to proactively manage distress debtors and control their balance sheets, accelerating early identification of bad loans in order to reduce the risk of weakening lending capacity in the time of great demand for recovery related investment; highlights existing flexibility in implementing ECB guidance on NPLs, including granting more time for banks with particularly high NPL levels for the submission of their NPLs reduction strategies;
Amendment 223 #
Motion for a resolution Paragraph 17 b (new) 17 b. Reminds that risk reduction in the banking sector would contribute a more stable, strong and economic growth oriented Banking Union; in this regard asks co-legislators to finalise the agreement on the Commission proposal for the Directive on credit servicers and credit purchasers, which will encourage the development of secondary markets for NPLs in the EU and aims to help banks to reduce the stocks of NPLs on their balance sheets; calls on the co-legislators to subsequently work on an agreement on the Commission proposal regarding accelerated extrajudicial collateral enforcement (AECE), 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;
Amendment 224 #
Motion for a resolution Paragraph 18 18.
Amendment 225 #
Motion for a resolution Paragraph 18 18. Stresses that banks should diligently assess the financial soundness and viability of businesses, proactively engage with distressed debtors to manage their exposures, and offer financing and viable restructuring, or alternative suitable options to viable companies, in order to ensure that defaults are prevented where possible, and that businesses and consumers don’t risk over-indebtedness; urges banks to contemplate, as last resort, the exit of unviable companies from the market in a structured way; considers that the prudential framework should allow and encourage such options; calls upon EBA to give banks enough room to provide forbearance measures, and avoid counterproductive capital absorptions;
Amendment 226 #
Motion for a resolution Paragraph 18 18. Stresses that banks should diligently assess the financial soundness and viability of businesses, proactively
Amendment 227 #
Motion for a resolution Paragraph 18 18. Stresses that banks should diligently assess the financial soundness and viability of businesses, proactively engage with distressed debtors to manage their exposures, and offer financing and restructuring options to viable companies; in order to give banks enough room to provide forbearance measures, and avoiding counterproductive capital absorptions embedded in the current regulatory framework, it would be important to increase from 1% to 5% the threshold for diminished credit obligation, set by paragraph 51 of EBA Guidelines on the definition of default (EBA/GL/2016/07);
Amendment 228 #
Motion for a resolution Paragraph 18 1
Amendment 229 #
Motion for a resolution Paragraph 18 18. Stresses that banks should diligently assess the financial soundness and viability of businesses, proactively engage with distressed debtors to manage their exposures, and offer financing and restructuring options to viable companies
Amendment 23 #
Motion for a resolution Recital A b (new) A b. whereas the completion of the Banking Union is a vital contributor to the international perception of the euro and its increased role in global markets;
Amendment 230 #
Motion for a resolution Paragraph 18 18. Stresses that banks should diligently assess the financial soundness and viability of businesses, proactively engage with distressed debtors to manage their exposures, and offer financing and restructuring options to viable companies and sectors whose prospects of recovery post pandemic, analysed on a case-by- case basis, remain high; stresses that the prudential framework should be consistently amended to allow and encourage such options;
Amendment 231 #
Motion for a resolution Paragraph 18 18. Stresses that banks should diligently assess the financial soundness and viability of businesses, proactively engage with distressed debtors to manage their exposures, and offer financing and restructuring options to viable companies; the prudential framework should be consistently amended to allow and encourage such options;
Amendment 232 #
Motion for a resolution Paragraph 18 18. Stresses that banks should diligently assess the financial soundness and viability of businesses, proactively engage with distressed debtors to manage their exposures, and offer financing and restructuring options to viable companies; the prudential framework should be consistently amended to allow and encourage such options;
Amendment 233 #
Motion for a resolution Paragraph 18 18. Stresses that banks should diligently assess the financial soundness and viability of businesses, proactively engage with distressed debtors to manage their exposures, and offer financing and restructuring options to viable companies, upon fulfilment of the abovementioned criteria banks should ensure adequate credit transmissions from the eurosystem to the real economy;
Amendment 234 #
18 a. Underlines the need to protect borrowers' rights in the context of NPL transactions and calls on Member States to put measures in place to ensure that borrowers, who might be in already vulnerable financial situations, are not subject to aggressive and unfair treatment and practices by poorly-regulated debt buyers and collectors; calls on the Commission, in the upcoming revision of the Consumer Credit Directive, to laydown more ambitious provisions on the protection of borrowers against abusive practices, ensuring that those rights apply equally to existing and future loans;
Amendment 235 #
Motion for a resolution Paragraph 18 a (new) 18 a. Calls on the ESAs to make full use of their powers to ensure a high degree of consumer protection, including, where appropriate, product intervention powers where financial and credit products have resulted in or are likely to result in consumer detriment;
Amendment 236 #
18 b. Underlines the importance of protecting consumer rights, namely regarding unfair terms and practices, banking fees, the transparency of products costs, profitability and risks; notes that the Banking Union still lacks effective tools to tackle problems consumers are facing such as unfair commercial practices and artificial complexity; calls, in this respect, on the European Banking Authority to devote more focus in fulfilling its mandate on properly collecting, analysing and reporting on consumer trends, and also on the review and coordination of financial literacy and education initiatives by the competent authorities; calls further on the Commission to scrutinise the unfair clauses and practices employed by the banking sector, in consumer contracts and to ensure the effective and swift implementation by all Member States of the Directive 93/13/EEC on unfair terms by using all means in place;
Amendment 237 #
Motion for a resolution Paragraph 18 a (new) 18a. Takes the view that, in order to give the banks sufficient leeway to implement tolerance measures and avoid counterproductive capital absorptions as provided for in the current rules, the diminished financial obligation threshold laid down in paragraph 51 of the EBA Guidelines on the definition of default (EBA/GL/2016/07) should be raised from 1% to 5%;
Amendment 238 #
Motion for a resolution Paragraph 19 19. Notes that the expected credit losses, together with the current low interest environment,
Amendment 239 #
Motion for a resolution Paragraph 19 19. Notes that the expected credit losses, together with the current low interest environment, might further negatively affect
Amendment 24 #
Motion for a resolution Recital A c (new) A c. whereas the Banking Union, with the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM), ensures full alignment between supervision and management of banking crisis;
Amendment 240 #
Motion for a resolution Paragraph 19 a (new) 19 a. Is alarmed that recent banking crises have revealed that credit institutions have routinely miss-sold bonds and other financial products to retail customers; regrets that the enforcement of the BRRD provisions on consumer protection with respect to MREL eligible liabilities has been piecemeal; urges the Commission to assess the misselling of financial products by banking institutions and based on the findings to come up with appropriate proposals, including in the upcoming BRRD revision;
Amendment 241 #
Motion for a resolution Paragraph 19 b (new) 19 b. Stresses that an effective system of European financial supervision necessitates far-reaching product intervention powers by the European Supervisory Authorities to take action where financial and credit products have resulted in or are likely to result in, consumer detriment; regrets that these powers remain currently temporary and exceptional; calls on the co-legislators to enhance the ESAs powers in the upcoming MIFIR/MIFID revision;
Amendment 242 #
Motion for a resolution Paragraph 20 Amendment 243 #
Motion for a resolution Paragraph 20 Amendment 244 #
Motion for a resolution Paragraph 20 20. Stresses the benefits of
Amendment 245 #
Motion for a resolution Paragraph 20 20. Stresses the benefits of
Amendment 246 #
Motion for a resolution Paragraph 20 20.
Amendment 247 #
Motion for a resolution Paragraph 20 20.
Amendment 248 #
Motion for a resolution Paragraph 20 20. Stresses the benefits of banking consolidation
Amendment 249 #
Motion for a resolution Paragraph 20 20. Stresses the benefits of banking consolidation, including across borders, in addressing the overcapacities and fragmentation of the banking sector;
Amendment 25 #
Motion for a resolution Recital A a (new) Amendment 250 #
Motion for a resolution Paragraph 20 20. Stresses the benefits of banking consolidation, including between countries, in addressing the overcapacities and fragmentation of the banking sector;
Amendment 251 #
Motion for a resolution Paragraph 20 20. Stresses the benefits of banking consolidation in addressing the overcapacities and fragmentation of the banking sector, taking into account each MS specificities; remains concerned, nonetheless with the existence of “too-big- to-fail” institutions; stresses furthermore the benefits of protecting diversity/plurality of financial sectors in building up systemic trust and maintaining the financial stability;
Amendment 252 #
Motion for a resolution Paragraph 20 a (new) 20 a. Stresses the importance of supervisory guidance recommending conservative policies on dividends and share buy-backs for financial institutions, attending to the need to maintain sufficient capitalisation;
Amendment 253 #
Motion for a resolution Paragraph 21 21. Regrets that the home host issue remains a challenge;
Amendment 254 #
Motion for a resolution Paragraph 21 21. Regrets that the home host issue remains a challenge; is concerned that if the level of NPLs rises as public support measures begin to recede, home and host countries may put in place measures to protect assets and proceed with renewed ring-fencing; 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; believes that this is essential to enable European banks to provide competitive services to European consumers and businesses and to ensure a dynamic and robust European banking sector; considers that gradual harmonisation is required in areas where national options and discretions apply
Amendment 255 #
Motion for a resolution Paragraph 21 21. Regrets that the home host issue remains a challenge; is concerned that if the level of NPLs rises as public support measures begin to recede, home and host countries may put in place measures to protect assets and proceed with renewed ring-fencing; stresses that banks need to be able to operate across borders while managing their capital and liquidity at a consolidated level
Amendment 256 #
Motion for a resolution Paragraph 22 22.
Amendment 257 #
Motion for a resolution Paragraph 22 22.
Amendment 258 #
Motion for a resolution Paragraph 22 22.
Amendment 259 #
Motion for a resolution Paragraph 22 22. Is concerned that as Member States sell increasing amounts of sovereign bonds, the
Amendment 26 #
Motion for a resolution Recital B B. whereas the
Amendment 260 #
Motion for a resolution Paragraph 22 22. Is concerned that as Member States sell increasing amounts of sovereign bonds, their share in banks’ balance sheets grows, potentially aggravating the doom loop;
Amendment 261 #
Motion for a resolution Paragraph 22 22. Is concerned that as Member States sell increasing amounts of sovereign bonds, their share in banks’ balance sheets grows, potentially aggravating the doom loop;
Amendment 262 #
Motion for a resolution Paragraph 22 22. Is concerned that as Member States sell increasing amounts of sovereign bonds, their share in banks’ balance sheets grows, potentially aggravating the doom loop; considers that the
Amendment 263 #
Motion for a resolution Paragraph 22 22. Is concerned that as Member States sell increasing amounts of sovereign bonds, their share in banks’ balance sheets
Amendment 264 #
Motion for a resolution Paragraph 22 22. Is concerned that as Member States sell increasing amounts of sovereign bonds, their share in banks’ balance sheets grows, potentially aggravating the doom loop; considers that the creation of Next Generation EU will provide high-quality European assets which will contribute to economic recovery; points out that Next Generation EU must serve as an opportunity to implement the reforms needed in every single EU Member State and make a further contribution to strengthening the European banking system;
Amendment 265 #
Motion for a resolution Paragraph 22 22. Is concerned that as Member States sell increasing amounts of sovereign
Amendment 266 #
Motion for a resolution Paragraph 22 a (new) 22 a. Believes that resolving the home- host issues, breaking the sovereign bank nexus and supporting banking consolidation efforts, would require the introduction of pan-European safety nets to create trust and reduce the impulse for ring-fencing, the elaboration and implementation of intragroup financial support agreements as part of the banks’ recovery plans, the gradual harmonisation in areas where national options and discretions apply, including in the area of insolvency, while continuing risk reduction efforts;
Amendment 267 #
Motion for a resolution Paragraph 22 a (new) 22 a. Takes the view that these high quality European Safe Assets will diversify the pool of safe assets available in the EU, providing an opportunity for banks to reduce the exposure of their balance sheets to national sovereign debt and contributing to strengthen the international role of the euro;
Amendment 268 #
Motion for a resolution Paragraph 22 a (new) 22 a. Calls on the European Commission to address the state-bank nexus by making a legislative proposal to introduce non-zero risk weights for sovereign exposures;
Amendment 269 #
Motion for a resolution Paragraph 22 a (new) 22 a. Stresses that the EU regulatory framework on prudential treatment of sovereign debt should be consistent with international standards;
Amendment 27 #
Motion for a resolution Recital B B. whereas the completion of the Banking Union beyond its two
Amendment 270 #
Motion for a resolution Paragraph 22 b (new) 22 b. Stresses the important role of robust internal governance structures within banks, and points to the weakness identified thereof in the SSM’s 2020 Supervisory and Evaluation Process (SREP) focused on how banks handled crisis-linked risk to capital and liquidity, taking into account exceptional circumstances affecting individual banks; commends the targeted approach to collecting information for capital and liquidity assessment; underlines the importance of enacting the highest standards and a level playing field in the “fit and proper” assessments of board members of banks, which are currently construed differently across Member States due to the highly diverse transposition of the Capital Requirements Directive; endorses the ECB’s plan to revise its current Guide to fit and proper assessment in 2021 to outline its supervisory expectations on the quality of the board members; anticipates the ECB’s proposals for a package of measures aimed at enhancing the fit and proper supervision; encourages in that regard the consideration for integration of the ‘fit and proper’ requirements into the Capital Requirements Regulation;
Amendment 271 #
Motion for a resolution Paragraph 23 23. Notes that the EU-wide stress test launched on 29 January 2021 aims to test capital trajectories of banks in a situation of worsening asset quality under the scenario of protracted low interest rate environment; notes that this stress test is a continuity of the past framework;
Amendment 272 #
Motion for a resolution Paragraph 23 23. Notes that the EU-wide stress test launched on 29 January 2021 aims to test capital trajectories of banks in a situation of worsening asset quality; stresses the importance to consider the impact of potentially rising interest rates on banks’ balance sheets;
Amendment 273 #
Motion for a resolution Paragraph 23 23. Notes that the EU-wide stress test launched on 29 January 2021 aims to test capital trajectories of banks in a situation of worsening asset quality; regrets however that the sample of 51 banks selected in the exercise is too narrow; calls on the EBA to enlarge the scope in subsequent stress test exercises; stresses that in the run-up to a possible EDIS it is all the more important to build trust by running stress tests and asset quality reviews on a rolling sample of LSIs;
Amendment 274 #
Motion for a resolution Paragraph 23 23. Notes that the EU-wide stress test launched on 29 January 2021 aims to test capital trajectories of banks in a situation of worsening asset quality; regrets, however, that the sample of 51 banks selected for the exercise is too small; calls on the European Banking Authority to broaden the scope of future stress test exercises;
Amendment 275 #
Motion for a resolution Paragraph 24 24.
Amendment 276 #
Motion for a resolution Paragraph 24 24.
Amendment 277 #
Motion for a resolution Paragraph 24 24.
Amendment 278 #
Motion for a resolution Paragraph 24 24. Notes the efforts of the SSM to provide guidance and clarity to banks for self-assessing and appropriately reporting environmental and climate change-related risks; commends in this context the recommendation of the ECB Guide on climate related and environmental risks, enhancing strategic, comprehensive approach to tackling climate related risk; supports the idea of banks’ self- assessment and action plans to be prepared in 2021 followed by 2022 supervisory review of banks’ actions; considers the SSM climate risk stress test an important step in evaluating banks’ practices and identifying concrete areas of improvement;
Amendment 279 #
Motion for a resolution Paragraph 24 24. Notes the efforts of the SSM to provide guidance and clarity to banks for self-assessing and appropriately reporting environmental and climate change-related risks; considers the SSM climate risk stress test an important step in evaluating banks’ practices and identifying concrete areas of improvement; warns, however, of danger of green asset bubbles that could be a consequence of oversubsidizing the sustainable investments;
Amendment 28 #
Motion for a resolution Recital B a (new) B a. whereas both the ECB and the SRB call for the swift completion of the Banking Union namely with the establishment of the EDIS (European Deposit Insurance Scheme);
Amendment 280 #
Motion for a resolution Paragraph 24 24. Notes the efforts of the SSM to provide guidance and clarity to banks for self-assessing and appropriately reporting environmental and climate change-related risks; considers the SSM climate risk stress test an important step in evaluating banks’ practices and identifying concrete areas of improvement; takes the view that these self-assessments and reports must be consistent with the proportionality principle and not undermine banks' capacity and competitiveness;
Amendment 281 #
Motion for a resolution Paragraph 24 a (new) 24 a. Reminds that the tragedy of the horizon means private actors, including banks, do not sufficiently take into account long-term risks, such as climate change; recalls that a recent International Energy Agency study concluded that, to reach the Paris goals, no new oil and gas projects should be developed, meaning that the EU's legal obligations under the climate law means that all investments in new fossil fuel projects will become stranded assets1a; therefore supports an update of the Capital Requirements Regulation to apply a risk weight of 1250% to new fossil fuel exposures, ensuring such investments are fully equity-funded; _________________ 1aInternational Energy Agency (2021) Net Zero by 2050 A Roadmap for the Global Energy Sector
Amendment 282 #
Motion for a resolution Paragraph 24 b (new) 24 b. Warns that companies with high exposures to fossil fuels frequently have high external credit ratings, even though they have significant exposures on their balance sheets that risk becoming stranded assets; underlines that this represents a market failure to integrate the long-term in decision making which merits government intervention; calls for a risk-based re-evaluation of the risk- weights attributed to existing fossil fuel exposures under the Capital Requirements Regulation; suggests a risk weight of 150% for such assets;
Amendment 283 #
Motion for a resolution Paragraph 25 25. Notes the EBA’s role in leading, coordinating and monitoring the EU financial sector’s fight against money laundering and terrorist financing; welcomes EBA's support on individual functioning of AML supervisory powers implementation across Member countries and calls for further actions to ensure AML/CFT supervision is risk based, proportionate and effective; points to the differences in approaches taken to AML/CFT supervision by national authorities and in the application of the EU regulation, which may result in regulatory arbitrage; takes note of EBA's second mandate to build a database on AML, expected to be developed in 2021, and enhance cooperation and exchange of information across European authorities; stresses the important role AML colleges for cross border groups, comprising of all AML authorities of the jurisdictions where the group operates, play in assessing how the group is performing under AML;
Amendment 284 #
Motion for a resolution Paragraph 25 25. Notes the EBA’s role in leading, coordinating and monitoring the EU financial sector’s fight against money laundering and terrorist financing; however, notes that the current EU AML/CTF framework suffers from shortcomings in enforcement of EU rules combined with a lack of efficient supervision; welcomes the Commission's Action Plan of 7 May 2020 for a comprehensive Union policy on preventing money laundering and terrorism financing and urges the Commission to urgently propose an ambitious new EU institutional architecture for AML/CTF;
Amendment 285 #
Motion for a resolution Paragraph 25 25. Notes the EBA’s role in leading, coordinating and monitoring the EU financial sector’s fight against money laundering and terrorist financing; welcomes the ECB’s efforts over the past two years to enhance exchange of information between the SSM and AML/CFT supervisors to better take into account AML aspects in prudential supervision measures;
Amendment 286 #
Motion for a resolution Paragraph 25 25. Notes the EBA’s role in leading, coordinating and monitoring the EU financial sector’s fight against money laundering and terrorist financing
Amendment 287 #
Motion for a resolution Paragraph 25 25. Notes the EBA’s role in leading, coordinating and monitoring the EU financial sector’s fight against money laundering and terrorist financing; welcomes the efforts made thus far as part of this fight, and calls for this responsibility to be matched by appropriate funding and resources;
Amendment 288 #
Motion for a resolution Paragraph 25 a (new) 25 a. Recalls that for AML/CFT efforts to be effective, the competent authorities and financial institutions must act in a coordinated manner; highlights that prudential and anti-money laundering supervision need to be better aligned; recalls its serious concerns about regulatory and supervisory fragmentation in the field of AML/CFT, which has led to a failure to provide adequate oversight and responses to the deficiencies of national supervisory authorities and undermines their ability to supervise the increasing cross-border activity in the EU; encourages the partial conversion of the provisions laid down in previous anti- money laundering directives into a regulation, thus targeting loopholes;
Amendment 289 #
Motion for a resolution Paragraph 25 a (new) 25 a. Deplores the fact that the requirements for the fit and proper assessments of members of the management body of credits institutions are implemented non-uniformly across Member States; therefore calls for further harmonisation in this area; insists that fit and proper assessments by the competent authorities must always be conducted ex- ante and not ex-post;
Amendment 29 #
Motion for a resolution Recital B a (new) B a. whereas the backstop for the Single Resolution Fund (SRF) will be introduced by 2022, two years earlier than previously foreseen, providing a common system-wide safety net for banks in resolution;
Amendment 290 #
Motion for a resolution Paragraph 25 b (new) 25 b. Regrets that several Member States have not fully transposed the Anti- Money Laundering Directive IV and V yet and even more Member States have serious shortcomings in their effective implementation; welcomes that the Commission has started to launch infringement procedures and 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; calls the Commission to launch infringement proceedings for any remaining lack of effective transposition and implementation of Anti- Money Laundering Directives.
Amendment 291 #
Motion for a resolution Paragraph 25 c (new) 25 c. Welcomes the Commission’s action plan “for a comprehensive Union policy on preventing money laundering and terrorism financing” published on 7 May 2020;
Amendment 292 #
Motion for a resolution Paragraph 25 d (new) 25 d. Calls the Commission to swiftly adopt its Anti-Money Laundering legislative package, urges the Commission to present a proposal to set-up an European Anti-Money Laundering supervisor and transfer large elements of the existing AML Directives into a regulation; stresses that the scope of the Anti-Money Laundering framework should cover crypto-assets issuers and providers; invites the Commission to consider the creation of an European Financial Intelligence Unit (FIU);
Amendment 293 #
Motion for a resolution Paragraph 25 e (new) 25 e. Welcomes the Commission’s Digital Finance Package; considers that the Commission’s proposals on Markets in crypto-assets and Digital Operational Resilience are timely, useful and necessary; emphasises that while digital finance increases the financing options for consumers and businesses, the consumer protection and financial stability should be preserved;
Amendment 294 #
Motion for a resolution Paragraph 25 a (new) 25 a. Highlights the important role of the banking sector in the battle against tax avoidance; reiterates the Parliament's position that increased audits and know your customer requirements are in order for transactions involving countries on Annex I or II of the list of non- cooperative jurisdictions for tax purposes;
Amendment 295 #
Motion for a resolution Paragraph 26 26.
Amendment 296 #
Motion for a resolution Paragraph 27 27.
Amendment 297 #
Motion for a resolution Paragraph 27 a (new) 27 a. Notes that adherence to the proportionality principle is key to make banking supervision work, in particular for smaller institutions;
Amendment 298 #
Motion for a resolution Paragraph 28 28.
Amendment 299 #
Motion for a resolution Paragraph 28 28. Trusts that the introduction of a backstop into the SRF in 2022, two years earlier than originally envisaged, i
Amendment 3 #
Motion for a resolution Citation 29 Amendment 30 #
Motion for a resolution Recital B b (new) Amendment 300 #
Motion for a resolution Paragraph 28 28.
Amendment 301 #
Motion for a resolution Paragraph 28 28.
Amendment 302 #
Motion for a resolution Paragraph 28 a (new) 28 a. Calls for the consideration of some form of credible, public budget-backed guarantee mechanism to ensure that in resolution, banks with limited collateral can access liquidity, as observed in other jurisdictions, in order to ensure the smooth continuity of services and the stability of financial markets ; considers in this context that an example could be a SRB bond that is lent to the bank in resolution;
Amendment 303 #
Motion for a resolution Paragraph 28 a (new) 28 a. Insists on holding banks solely responsible for their performance instead of letting taxpayers shoulder the burden of a crisis management framework, in particular of the new lending facility under the common backstop framework;
Amendment 304 #
Motion for a resolution Paragraph 29 29. Welcomes the fact that while the
Amendment 305 #
Motion for a resolution Paragraph 29 29. Welcomes the fact that while the SRB was not required to take resolution action in 2020, it nevertheless collaborated with the SSM regarding close-to-crisis cases; appreciates the advancement of the current resolution planning cycle, and reiterates that
Amendment 306 #
Motion for a resolution Paragraph 29 29. Welcomes the fact that while the SRB was not required to take resolution action in 2020, it nevertheless collaborated with the SSM regarding close-to-crisis cases; appreciates the advancement of the current resolution planning cycle, and reiterates that
Amendment 307 #
Motion for a resolution Paragraph 29 29. Welcomes the fact that while the SRB was not required to take resolution action in 2020, it nevertheless collaborated with the SSM regarding close-to-crisis cases; appreciates the advancement of the current resolution planning cycle, and reiterates that
Amendment 308 #
Motion for a resolution Paragraph 29 29. Welcomes the fact that while the SRB was not required to take resolution action in 2020, it nevertheless collaborated with the SSM regarding close-to-crisis cases;
Amendment 309 #
Motion for a resolution Paragraph 29 a (new) 29 a. Takes notes of the SRB Covid19 measures that include a “forward looking approach” to 2019 MREL targets as well as further relief to banks in the form of changes to the intermediate MREL targets under the BRRD II; underlines that the legal basis of such regulatory action appears questionable, as it has been taken in the absence of a BRRD legislative change in light of the Covid crisis similar to the “CRR quick fix”; stresses that information on such measures remains extremely limited on the SRB website; urges the SRB to make public the guidance followed by internal resolution teams (IRTs) in applying Covid19 related relief;
Amendment 31 #
Motion for a resolution Recital B c (new) B c. whereas the shortcomings identified during the pandemic provide renewed impetus to move forward on improving crisis management, further integrating the banking sector, addressing the home-host balance and the regulatory treatment of sovereign exposures, as well as on the introduction of a European deposit insurance scheme; whereas embracing the lessons learned during the pandemic could pave the way for improved cost efficiency and more sustainable business models;
Amendment 310 #
Motion for a resolution Paragraph 29 a (new) 29 a. Points out that the existing overlaps between the requirements for the use of early intervention measures and standard supervisory powers of the ECB create confusion and can prevent the implementation of early intervention measures; insists therefore that this overlap should be removed and the legal basis for each instrument should be clarified in order to ensure appropriate and gradual application of the measures;
Amendment 311 #
Motion for a resolution Paragraph 29 a (new) 29 a. Endorses ECA’s recommendation that in order to ensure that supervisory action is taken sufficiently early, the SRB and the Commission should approach the legislators and the ECB, in its role as supervisor, and advocate for objective and quantified thresholds for triggering early intervention measures, and reaching the decision that a bank is failing or likely to fail;
Amendment 312 #
Motion for a resolution Paragraph 29 a (new) 29a. Regards it as essential to increase the transparency and ex ante predictability of the results of the public interest assessment, in order to provide the clarity needed to guarantee more consistent and proportionate MREL levels;
Amendment 313 #
Motion for a resolution Paragraph 30 30. Considers it necessary to
Amendment 314 #
Motion for a resolution Paragraph 30 30. Considers it necessary to have in place an EU liquidation regime, based upon an enhanced role of DGS preventive and alternative interventions, for banks for which the SRB assesses that there is no public interest in resolution;
Amendment 315 #
Motion for a resolution Paragraph 30 30. Considers it necessary to have in place an EU liquidation regime, based upon an enhanced role of DGS preventive and alternative interventions, for banks for which the SRB assesses that there is no public interest in resolution;
Amendment 316 #
Motion for a resolution Paragraph 30 30. Considers it necessary to have in place a
Amendment 317 #
Motion for a resolution Paragraph 30 30. Considers it necessary t
Amendment 318 #
Motion for a resolution Paragraph 30 30. Considers it necessary to have in place an EU
Amendment 319 #
Motion for a resolution Paragraph 30 30. Considers it necessary to have in place an EU liquidation regime, based on greater use of preventive interventions as an alternative to deposit guarantee schemes, for banks for which the SRB assesses that there is no public interest in resolution;
Amendment 32 #
Motion for a resolution Recital C Amendment 320 #
Motion for a resolution Paragraph 30 a (new) 30 a. Recalls the important role of the SRM to provide stability and clarity for the banking sector, investors and consumers and to protect taxpayers; calls for the SRM to be used to its full potential to ensure the orderly resolution of any failing bank with minimal costs to the tax payer and the real economy; believes that if more European banks were subject to the SRM framework then the more consistent treatment of failing banks would better protect European taxpayers, improve market discipline and reduce the burden on other solvent banks and taxpayers;
Amendment 321 #
Motion for a resolution Paragraph 30 a (new) 30 a. Stresses that the “sale of business” strategy should be prioritised by the SRB as a way to minimise value losses in resolution and liquidation; considers therefore that access to the SRF and the national deposit guarantee schemes (NDGSs) should be facilitated, as a way to minimise tax payer contributions and destruction of value, and ensure financial stability;
Amendment 322 #
Motion for a resolution Paragraph 30 a (new) 30 a. Stresses that a long-term liquidity regime can only be achieved through a common deposit insurance scheme and through avoiding divergence between national insolvency procedures;
Amendment 323 #
Motion for a resolution Paragraph 31 31. Notes that the current diversity of insolvency regimes is a source of uncertainty about the outcome of liquidation procedures; is of the opinion that in order for the Banking Union to function effectively, bank insolvency laws need to be further harmonised towards an EU-wide regime, that would provide the same level of certainty in liquidation as is expected in resolution; Invites the Commission to reflect on the potential for further harmonisation of specific aspects of existing national insolvency laws in order to ensure a consistent and effective application of the crisis management framework;
Amendment 324 #
Motion for a resolution Paragraph 31 31. Invites the Commission to reflect on the necessary improvements of the crisis management and deposit insurance framework to ensure its consistent and effective application to all banks irrespective of their size or business model, focusing in particular on the choice of resolution tools, on proportionality in the conditions for accessing the SRF or the national resolution funds and on the potential for further harmonisation of specific aspects of existing national insolvency laws
Amendment 325 #
Motion for a resolution Paragraph 31 31. Invites the Commission to
Amendment 326 #
Motion for a resolution Paragraph 31 31. Invites the Commission, following detailed study and consultation with national authorities and parliaments, to reflect on the potential for further harmonisation of specific aspects of existing national insolvency laws in order to ensure a consistent and effective application of the crisis management framework;
Amendment 327 #
Motion for a resolution Paragraph 32 32. Finds merit, in particular, in adopting a targeted approach to the harmonisation of the creditor hierarchy in bank insolvency proceedings; underlines, in addition, the need for harmonization of triggers for insolvency proceedings in Member States and their alignment with the withdrawal of a bank’s licence in order to prevent “limbo” situations, where a bank is declared as “failing or likely to fail” but there is neither public interest to start a resolution action nor do national laws allow the initiation of liquidation proceedings;
Amendment 328 #
Motion for a resolution Paragraph 32 32. Finds merit, in particular, in adopting a targeted approach to the harmonisation of the creditor hierarchy in bank insolvency proceedings, including the treatment of covered and uncovered deposits, in order to increase the scope of the funding by the DGSs in resolution and in measures other than payouts, subject to the stringent application of a least-cost test; calls therefore on the Commission to bring more clarity to the least-cost principle and to the conditions for the use of DGS funds;
Amendment 329 #
Motion for a resolution Paragraph 32 32. Finds merit, in particular, in adopting a targeted approach to the harmonisation of the creditor hierarchy in bank insolvency proceedings, involving a raising of the coverage threshold for households and SMEs, in order to safeguard the credibility of the European banking system;
Amendment 33 #
Motion for a resolution Recital C C. whereas
Amendment 330 #
Motion for a resolution Paragraph 33 33. Considers it necessary to review the public interest assessment in order to
Amendment 331 #
Motion for a resolution Paragraph 33 33.
Amendment 332 #
Motion for a resolution Paragraph 33 33. Considers it necessary to
Amendment 333 #
Motion for a resolution Paragraph 33 33. Considers it necessary to
Amendment 334 #
Motion for a resolution Paragraph 33 33. Considers it necessary to review the public interest assessment in order to allow resolution tools to be applied to a broader group of banks and welcomes the SRB's ongoing work in this regard;
Amendment 335 #
Motion for a resolution Paragraph 33 33. Considers it necessary to review the public interest assessment in order to allow resolution tools to be applied to a broader group of banks, namely for middle-sized banks;
Amendment 336 #
33. Considers it necessary to make resolution work for more banks, which requires reviewing the public interest assessment in order to allow resolution tools to be applied to a broader group of banks;
Amendment 337 #
Motion for a resolution Paragraph 33 33.
Amendment 338 #
Motion for a resolution Paragraph 33 33. Considers it necessary to
Amendment 339 #
Motion for a resolution Paragraph 33 a (new) 33 a. Points out that for resolution plans to be fully compliant with the legal requirements, the SRB needs to provide a comprehensive assessment on each bank’s resolvability, including as to whether substantive impediments to resolvability exist and how those impediments can be removed; takes note in this respect of the SRB’s “Expectations for Banks” as well as the resolvability heatmap; stresses however, the 2021 ECA report finding that “the SRB has not yet determined substantive impediments nor initiated an administrative procedure for ensuring the removal of substantive impediments that is provided for in the legal framework; as long as there is no conclusion as to the nature of impediments, there will be no conclusion as to a bank’s resolvability”; underlines that gradual phase in of resolution planning and assessment is not foreseen in the current legal framework; is, therefore, deeply concerned by the fact that 6 years after the establishment of the Bank Recovery and Resolution Directive (BRRD), institutions in the Banking Union lack fully compliant resolution plans; urges the SRB to prepare fully- fledged plans for all the groups under its direct remit including identification and removal of any significant impediments in the 2021 cycle;
Amendment 34 #
Motion for a resolution Recital C C. whereas
Amendment 340 #
Motion for a resolution Paragraph 33 a (new) 33 a. Calls for enhancing the use of deposit book transfer strategies in resolution to handle failures of all kinds of banks, by enhancing their access to funding in resolution subject to market- exit after implementing the transfer; finds merit in increasing the role of DGS to enable such transfer strategies within resolution, for example using the DGS to bridge the gap between the 8% bail-in prerequisite to access the resolution fund and the bank’s actual loss-absorbing capacity excluding deposits that are meant to be transferred;
Amendment 341 #
Motion for a resolution Paragraph 34 34.
Amendment 342 #
Motion for a resolution Paragraph 34 34. Supports the idea of considering the role of group recovery and resolution plans in the crisis management framework, such that the calibration of MREL and banks’ contributions to the various safety nets would be truly risk-based, reflecting the likelihood and magnitude of the use of these safety nets under the preferred crisis management strategy;
Amendment 343 #
Motion for a resolution Paragraph 34 a (new) 34 a. Considers it necessary to align the incentives attached to the use of various existing crisis management tools, to prevent arbitrage between preventive action, resolution and liquidation; notes that it would require imposing the same burden sharing conditions in preventive interventions as in precautionary recapitalisations, since both types of tools aim at preventing the failure of a bank, and aligning burden sharing in liquidation and resolution for the granting of external funding;
Amendment 344 #
Motion for a resolution Paragraph 34 a (new) 34 a. Is deeply concerned that the Banking Union still lacks its third pillar, namely a robust European deposit insurance scheme that would ensure the protection of depositors across the entire Banking Union and significantly reduce the negative link between banks and their home sovereign;
Amendment 345 #
Motion for a resolution Paragraph 34 b (new) 34 b. Calls on the Commission to align the state aid framework with the reviewed CMDI framework, with a view to enforcing the necessary alignment of incentives across crisis management methods, inside and outside resolution;
Amendment 346 #
Motion for a resolution Paragraph 35 35. Notes the importance of depositors across the Banking Union enjoying the same level of protection of their savings; points out that the implementation of the DGSD has contributed and continues to contribute to that objective; takes note of the Commission
Amendment 347 #
Motion for a resolution Paragraph 35 35.
Amendment 348 #
35. Notes the importance of depositors across the Banking Union enjoying the same level of protection of their savings; takes note of the Commission proposal to introduce a European Deposit Insurance Scheme in order to further strengthen citizens’ confidence in the protection of deposits
Amendment 349 #
Motion for a resolution Paragraph 35 35. Notes the importance of depositors across the Banking Union enjoying the same level of protection of their savings; takes note of the Commission proposal to further strengthen citizens’ confidence in the protection of deposits by introducing an EDIS, which would de facto prove the effectiveness of the pillars of the Banking Union;
Amendment 35 #
Motion for a resolution Recital C C. whereas
Amendment 350 #
Motion for a resolution Paragraph 35 35.
Amendment 351 #
Motion for a resolution Paragraph 35 35.
Amendment 352 #
Motion for a resolution Paragraph 35 35. Notes the importance of depositors across the Banking Union enjoying the same level of protection of their savings, and takes the view that the threshold should be raised, at least for households and SMEs, in order to safeguard the credibility of the European banking system; takes note of the Commission proposal to further strengthen citizens’ confidence in the protection of deposits by introducing an EDIS;
Amendment 353 #
Motion for a resolution Paragraph 35 35. Notes the importance of depositors across the Banking Union enjoying the same level of protection of their savings, regardless of the country in which they live; takes note of the Commission proposal to further strengthen citizens’ confidence in the protection of deposits by introducing an EDIS; calls for a firm commitment on the part of the Member States to develop a model consistent with the Union's interests; takes the view that the introduction of an EDIS is an important step towards establishing the Banking Union;
Amendment 354 #
Motion for a resolution Paragraph 35 35. Notes the importance of
Amendment 355 #
Motion for a resolution Paragraph 35 a (new) 35 a. Stresses the importance of risk proportionality of contributions to DGS; notes that such risk proportionality is not sufficiently implemented in most existing DGS in the Union; warns that this creates risks of moral hazard and free-riding, leading to a subsidization of speculative business models by conservative ones; notes with concern that these risks are vastly exacerbated by the emergence of online deposit brokerage platforms that use DGS coverage as a central marketing argument; recalls the recent case of Greensill Bank which attracted large amounts of deposits in a short time through such platforms; calls for a strengthening of level 2 legislation on the DGSD to ensure strict risk proportionality of contributions to DGS; emphasizes that contributions to a future EDIS must also be strictly proportional to risk;
Amendment 356 #
Motion for a resolution Paragraph 35 a (new) 35 a. Reiterates the need for all members of the Banking Union to undergo the transposition of the BRRD and the Deposit Guarantee Schemes Directive to ensure homogenous risk reduction across the BU before EDIS is implemented;
Amendment 357 #
Motion for a resolution Paragraph 35 a (new) 35 a. Points out that risks still differ greatly between different national banking systems;
Amendment 358 #
Motion for a resolution Paragraph 35 b (new) 35 b. Emphasises the potential high risks of EDIS, particularly those related to moral hazard; opposes therefore the completion of the Banking Union through the creation of a fully mutualised EDIS;
Amendment 359 #
Motion for a resolution Paragraph 35 b (new) 35 b. Is of the opinion that while EDIS must provide full liquidity and loss coverage, it must preserve Institutional Protection Schemes (IPSs), which must be treated as a single entity for EDIS purposes;
Amendment 36 #
Motion for a resolution Recital C C. whereas
Amendment 360 #
Motion for a resolution Paragraph 35 c (new) 35 c. Stresses that risk reduction would ensure the level of protection that depositors currently enjoy, without raising the systemic risk through establishing fully mutualised EDIS;
Amendment 361 #
Motion for a resolution Paragraph 35 d (new) 35 d. Questions whether Article 114 would be an appropriate legal basis for the establishment of EDIS;
Amendment 362 #
Motion for a resolution Paragraph 35 a (new) 35a. Notes that risk reduction, without which there can be no risk sharing, has not taken place to a sufficient extent to date, as can be seen, for example, from Member States' NPL ratios, which differ significantly;
Amendment 363 #
Motion for a resolution Paragraph 36 36.
Amendment 364 #
Motion for a resolution Paragraph 36 36. Notes the Commission’s launch of the review of the CMDI framework, including the option of a hybrid EDIS, built around the idea of an initial liquidity support mechanism among national DGSs, aimed at funding any shortfall of DGS means regardless of whether the funds have been used in a pay-out intervention or in a preventive/alternative intervention, on the assumption that such a choice is driven by the Least Cost Test (LCT);
Amendment 365 #
Motion for a resolution Paragraph 36 36. Notes the Commission’s launch of the review of the CMDI framework, including the option of a hybrid EDIS, built around the idea of an initial liquidity support mechanism among national DGSs, aimed at funding any shortfall of DGS means, regardless of whether the funds have been used in a pay-out intervention or in a preventive/alternative intervention, on the assumption that such a choice is driven by the Least Cost Test (LCT);
Amendment 366 #
Motion for a resolution Paragraph 36 36. Notes the Commission’s launch of the review of the CMDI framework,
Amendment 367 #
Motion for a resolution Paragraph 36 36. Notes the Commission’s launch of the review of the CMDI framework
Amendment 368 #
Motion for a resolution Paragraph 36 36. Notes the Commission’s launch of the review of the CMDI framework, including the option of a hybrid EDIS; stresses that the review must not be made at the expense of the well-functioning national Deposit Guarantee Systems and Institutional Protection Schemes;
Amendment 369 #
Motion for a resolution Paragraph 36 36. Notes the Commission’s launch of the review of the CMDI framework
Amendment 37 #
Motion for a resolution Recital C C. whereas the
Amendment 370 #
Motion for a resolution Paragraph 36 36. Notes the Commission’s launch of the review of the CMDI framework
Amendment 371 #
Motion for a resolution Paragraph 36 36. Notes the Commission’s launch of the review of the CMDI framework
Amendment 372 #
Motion for a resolution Paragraph 36 36. Notes the Commission’s launch of the review of the CMDI framework, including the option of a hybrid EDIS, built around the idea of an initial liquidity support mechanism among national DGSs and aimed at financing any shortage of DGS means, irrespective of whether the funds have been used in a pay-out or preventive/alternative intervention, assuming that this choice is guided by the Least Cost Test (LCT);
Amendment 373 #
Motion for a resolution Paragraph 36 a (new) 36 a. Considers it necessary to coherently amend the State Aid rules and the DG COMP 2013 Banking Communication in order to allow DGS preventive and alternative intervention in the crisis management context, taking duly into account the recent CJEU rulings;
Amendment 374 #
Motion for a resolution Paragraph 36 a (new) 36 a. Calls on the European Commission to duly take into account the important role of Institutional Protection Schemes in protecting and stabilising member institutions if and when new proposals in relation to deposit insurance are introduced;
Amendment 375 #
Motion for a resolution Paragraph 36 a (new) 36 a. Notes that steps have already been undertaken toward the direction of an EDIS, such as the harmonization of national Deposit Guarantee Schemes, guaranteeing up to 100.000 euros in banking deposits;
Amendment 376 #
Motion for a resolution Paragraph 36 a (new) 36 a. Calls for further steps towards a time-bound work plan on all outstanding elements needed to complete swiftly the Banking Union and deliver a fully-fledged EDIS;
Amendment 377 #
Motion for a resolution Paragraph 36 b (new) 36 b. Considers it necessary to increase transparency and ex-ante predictability on the expected public interest assessment outcomes in order to provide the clarity needed to ensure more coherent and proportionate MREL levels;
Amendment 378 #
Motion for a resolution Paragraph 36 b (new) 36 b. Notes that the possibility of inter- DGS lending already exists;
Amendment 379 #
Motion for a resolution Paragraph 36 c (new) 36 c. Notes that further development of an EDIS should be linked to Assets Quality Reviews and risk reduction in the banking sector;
Amendment 38 #
Motion for a resolution Recital C C. whereas the lack of a solution to the treatment of sovereign debt exposures and national options and discretions persists, undermining the European dimension of the Banking Union; points out that the rising public debt levels following the pandemic make an appropriate treatment of sovereign exposures more pressing;
Amendment 380 #
Motion for a resolution Paragraph 36 a (new) 36a. Considers it necessary to amend DG COMP’s 2013 state aid rules and Banking Communication in a consistent manner in order to allow for preventive and alternative action by DGS in the context of crisis management, taking due account of recent CJEU rulings;
Amendment 381 #
Motion for a resolution Paragraph 36 b (new) 36b. Considers it essential to increase the transparency and ex ante predictability of the results of the public interest assessment, in order to provide the clarity needed to guarantee more consistent and proportionate MREL levels;
Amendment 382 #
Motion for a resolution Paragraph 37 a (new) 37 a. Considers it necessary to coherently amend the State Aid rules and the DG COMP 2013 Banking Communication in order to allow DGS preventive and alternative intervention in the crisis management context, taking duly into account the recent CJEU rulings;
Amendment 383 #
Motion for a resolution Paragraph 37 b (new) 37 b. Considers it necessary to increase transparency and ex-ante predictability on the expected public interest assessment outcomes in order to provide the clarity needed to ensure more coherent and proportionate MREL levels;
Amendment 39 #
Motion for a resolution Recital C C. whereas the lack of a solution to the treatment of sovereign debt exposures still to be discussed at international level and national options and discretions persists, undermining the European dimension of the Banking Union;
Amendment 4 #
Motion for a resolution Citation 32 a (new) — having regard to the paper entitled ‘Liquidity in resolution: comparing frameworks for liquidity provision across jurisdictions’ of the ECB’s Occasional Paper Series1a, _________________ 1aGrund, Sebastian, Nomm, Nele and Walch, Florian, ‘Liquidity in resolution: comparing frameworks for liquidity provision across jurisdictions’, Occasional Paper Series, No 251, ECB, Frankfurt am Main, December 2020, available at https://www.ecb.europa.eu/pub/pdf/scpops /ecb.op251~65a080c5b3.en.pdf
Amendment 40 #
Motion for a resolution Recital C C. whereas the lack of a solution to the treatment of sovereign debt exposures still to be discussed at international level and national options and discretions persists,
Amendment 41 #
Motion for a resolution Recital C a (new) C a. whereas more than ten years after the financial crisis, the ‘too big to fail’ and ‘too interconnected to fail’ problems remain insufficiently addressed;
Amendment 42 #
Motion for a resolution Recital C a (new) C a. whereas a reinforced Banking Union requires first and foremost accelerated efforts by various Member States to reduce their high levels of non- performing loans and prevent their increase in the future;
Amendment 43 #
C a. whereas the regulatory treatment of sovereign debt exposures in the EU is in line with international standards;
Amendment 44 #
Motion for a resolution Recital C a (new) C a. whereas the sovereign-bank doom loop has not been properly addressed yet;
Amendment 45 #
Motion for a resolution Recital C b (new) C b. whereas as long as risks differ greatly between national banking systems, European Deposit Insurance Scheme would pose additional systemic risk for the Banking Union;
Amendment 46 #
Motion for a resolution Recital D D. whereas climate change, environmental degradation and the transition to a low-carbon economy
Amendment 47 #
Motion for a resolution Recital D D. whereas climate change, environmental degradation, increased red tape in the context of climate reporting for financial institutions, which could be referred to as "green tape", and the transition to a low-carbon economy bring new risks to banks’ balance sheets;
Amendment 48 #
Motion for a resolution Recital D D. whereas climate change, environmental degradation and the transition to a low-carbon economy bring new risks to banks’ balance sheets
Amendment 49 #
Motion for a resolution Recital D D. whereas climate change, environmental degradation and the transition to a low-carbon economy bring new risks to banks’ balance sheets; whereas sophisticated risk models should already capture many of the risks associated with climate change;
Amendment 5 #
Motion for a resolution Citation 39 a (new) — having regard to the Commission’s action plan “for a comprehensive Union policy on preventing money laundering and terrorism financing” published on 7 May 2020,
Amendment 50 #
Motion for a resolution Recital D a (new) D a. Expresses deep concern about the findings of the ECB´s Targeted Review of Internal Models, published in April 2021, which shows that the biggest euro area banks have repeatedly been too optimistic in their risk-modelling, confirming longstanding suspicions among regulators and analysts that larger banks have often artificially inflated the strength of their balance sheets by underestimating the riskiness of their assets, giving them a short-term advantage over more cautious competitors; is alarmed that the Review resulted in more than 5.800 deficiencies and 253 supervisory corrections of internal models by the ECB, which pushed up the banks’ risk-weighted assets by € 275 billion, a 12 per cent increase in the models examined, which reduced their average common equity tier one ratios by 0.71 percentage points;
Amendment 51 #
Motion for a resolution Recital D a (new) D a. whereas the urge for technological transformation has accelerated, increasing the efficiency of banks and their ambition for innovation, while exposing them at the same time to the new risks and challenges of the digital finance world, cybersecurity, reputational risks, data privacy, AML risks and consumer protection;
Amendment 52 #
Motion for a resolution Recital E E. whereas
Amendment 53 #
Motion for a resolution Recital E E. whereas, despite strong EU consumer protection
Amendment 54 #
Motion for a resolution Recital E E. whereas consumer
Amendment 55 #
Motion for a resolution Recital E E. whereas consumer protection varies across the Banking Union, while the EU legislation provides a strong minimum baseline;
Amendment 56 #
Motion for a resolution Recital E a (new) E a. whereas the Banking Union still lacks effective tools to tackle problems consumers are facing: artificial complexity, unfair commercial practices, exclusion of vulnerable groups from using basic services as well as limited involvement of public authorities;
Amendment 57 #
Motion for a resolution Recital F F. whereas
Amendment 58 #
Motion for a resolution Recital F F. whereas prudential supervision is necessary and the fight against fraud and anti-money laundering s
Amendment 59 #
Motion for a resolution Recital F F. whereas
Amendment 6 #
Motion for a resolution Citation 40 a (new) — having regard to the European Commission action plan for a comprehensive Union policy on preventing money laundering and terrorism financing of 7 May 202029a, _________________ 29ahttps://ec.europa.eu/info/business- economy-euro/banking-and- finance/financial-supervision-and-risk- management/anti-money-laundering-and- counter-terrorist-financing_en
Amendment 60 #
Motion for a resolution Recital F F. whereas stronger EU prudential and anti-money laundering (AML) supervision is necessary;
Amendment 61 #
Motion for a resolution Recital F F. whereas prudential and anti-money laundering supervision is necessary and should be further strengthened;
Amendment 62 #
Motion for a resolution Recital F F. whereas prudential and anti-money laundering supervision is necessary and equally important;
Amendment 63 #
Motion for a resolution Recital F a (new) F a. whereas sound global standards and principles are important for the prudential regulation of banks; whereas the standards of the Basel Committee on Banking Supervision (BCBS) should be enacted into European law in a timely fashion and with due regard for their goals, taking proper account of the specific characteristics of the European banking system, where appropriate, and the proportionality principle;
Amendment 64 #
Motion for a resolution Recital F a (new) F a. whereas the standards of the Basel Committee on Banking Supervision can serve as a global harmonising platform for banks, they should be enacted into European law in a timely fashion and with due regard for their goals, taking proper account of the specific characteristics of the European banking system, where appropriate, and the proportionality principle;
Amendment 65 #
Motion for a resolution Recital G G. whereas the withdrawal of the UK from the EU has resulted in the relocation of certain banking services to the EU;
Amendment 66 #
Motion for a resolution Recital G G. whereas the withdrawal of the UK from the EU has resulted in the relocation of some banking services to the EU;
Amendment 67 #
Motion for a resolution Recital G G. whereas the withdrawal of the UK from the EU has resulted in the relocation of banking services to the EU;
Amendment 68 #
Motion for a resolution Recital H H. whereas the EU and the UK are currently committed to maintaining regulatory and supervisory cooperation in the field of financial services; whereas this engagement by the UK should be kept for future relations;
Amendment 69 #
Motion for a resolution Recital I I. whereas the crisis management and deposit insurance
Amendment 7 #
Motion for a resolution Citation 43 a (new) — having regard to the European Court of Auditors (ECA) Special Report entitled ‘Resolution planning in the Single Resolution Mechanism’, published on 14 January 2021,
Amendment 70 #
Motion for a resolution Recital I I. whereas the crisis management and deposit insurance (CMDI) framework should be proportiona
Amendment 71 #
Motion for a resolution Recital I I. whereas the crisis management and deposit insurance (CMDI) framework should be proportional, more efficient and more coherent, and should contribute to financial stability, the end of implicit guarantees and the protection of taxpayers;
Amendment 72 #
Motion for a resolution Recital I a (new) Amendment 73 #
Motion for a resolution Recital I a (new) I a. whereas the current crisis management framework does not ensure a consistent approach in handling distressed banks across Member States, due to, inter alia, different interpretation of the Public Interest Assessment (PIA) by the SRB and National Resolution authorities outside the Banking Union, availability under national insolvency proceedings of tools that are similar to the resolution tools under BRRD and SRMR and the misalignment of incentives when choosing the solution for addressing a bank’s failure as a result of the different conditions for accessing the funding sources available in resolution and in insolvency;
Amendment 74 #
Motion for a resolution Recital I a (new) I a. whereas the sound public finances are necessary condition for the macro- financial stability of the Banking Union;
Amendment 75 #
Motion for a resolution Recital J J. whereas depositors across the Banking Union
Amendment 76 #
Motion for a resolution Recital J J. whereas depositors across the Banking Union
Amendment 77 #
Motion for a resolution Recital J J. whereas supervision and resolution rules, as well as the resolution fund have been centralized, deposit guarantees schemes remain national and differ across Member States; whereas depositors across the Banking Union should enjoy the same level of protection;
Amendment 78 #
Motion for a resolution Recital J J. whereas depositors across the Banking Union should enjoy the same level of protection; whereas the provisions in the DGSD provide for a very high minimum baseline of protection of depositors;
Amendment 79 #
Motion for a resolution Recital J a (new) J a. whereas the near zero interest rates greatly reduce the profitability of banks in one of their most important areas of business activity, the provision of credit for long-term investments;
Amendment 8 #
Motion for a resolution Citation 43 a (new) — having regard to the answer by Commissioner Johansson to parliamentary question E-003462/2020,
Amendment 80 #
Motion for a resolution Recital J b (new) J b. whereas the stability of financial institutions in the Banking Union is still a matter of grave concern; whereas the economic downturn will lead to an increase in non-performing loans;
Amendment 81 #
Motion for a resolution Paragraph 1 1.
Amendment 82 #
Motion for a resolution Paragraph 1 1. Welcomes the entry of Bulgaria and Croatia into the Banking Union
Amendment 83 #
Motion for a resolution Paragraph 1 1. Welcomes the entry of Bulgaria and Croatia into the
Amendment 84 #
Motion for a resolution Paragraph 1 1. Welcomes the entry of Bulgaria and Croatia into the Banking Union; stresses that before Bulgaria and Croatia enter the euro, they should not only meet the formal entry criteria for debt levels and price stability, but also make significant progress in fighting money laundering and financial crime; emphasizes that a comprehensive assessment of the banking sector should be conduct prior to the accession to the common currency, including on less significant institutions;
Amendment 85 #
Motion for a resolution Paragraph 1 a (new) 1 a. Recalls that the Commission assessed in the 2020 Country Specific Recommendations for Croatia that despite several Action Plans, issues of corruption and conflicts of interest remain widespread in Croatia, and that further efforts to strengthen the prevention and sanction of corruption are needed to ensure the transparent and efficient use of public funds; recalls that Article 140(1) TFEU requires the Commission and European Central Bank’s convergence reports to take account of "other factors" relevant to economic integration and convergence, such as corruption; recalls that the Commission criticized Bulgaria in its 2020 Rule of Law report for its disregard for the rule of law and the independence of the judiciary; concludes that Bulgaria and Croatia are not ready for accession to the Banking Union;
Amendment 86 #
Motion for a resolution Paragraph 1 a (new) 1 a. Welcomes the discussions in Denmark and Sweden on the possibility to enter the Banking Union and stresses that cooperation amongst national supervisors is of utmost importance, in particular as regard to cross-border activities; underlines that participation must preserve already existing and well- functioning business models with respect to financial stability;
Amendment 87 #
Motion for a resolution Paragraph 2 2.
Amendment 88 #
Motion for a resolution Paragraph 2 2. Recalls that the Banking Union has delivered the institutional set-up for greater market integration, through the SSM and the SRM
Amendment 89 #
Motion for a resolution Paragraph 2 2. Recalls that the Banking Union has delivered the institutional set-up for greater market integration
Amendment 9 #
Motion for a resolution Citation 43 b (new) — having regard to Article 140(1) of the Treaty on the Functioning of the European Union,
Amendment 90 #
Motion for a resolution Paragraph 2 2. Recalls that the Banking Union has delivered the institutional set-up for greater market integration, through the SSM and the SRM
Amendment 91 #
Motion for a resolution Paragraph 2 2. Recalls that the Banking Union has delivered the institutional set-up for greater market integration, through the SSM and the SRM, while a European deposit insurance scheme (EDIS) is still
Amendment 92 #
Motion for a resolution Paragraph 2 2. Recalls that the Banking Union has delivered the institutional set-up for greater market integration, through the SSM and the SRM, while its third pillar, a European deposit insurance scheme (EDIS) is still lacking;
Amendment 93 #
Motion for a resolution Paragraph 2 2. Recalls that the Banking Union has
Amendment 94 #
Motion for a resolution Paragraph 2 2. Recalls that the Banking Union has delivered the institutional set-up for greater market integration, through the SSM and the SRM, while a European deposit insurance scheme (EDIS) is still lacking; welcomes the possible revision of the resolution framework and supports the current reflection for further harmonisation of insolvency laws, with a view to increase the efficiency and coherence of crisis management of banks in the EU, as well as for the creation of a deposit insurance mechanism in the Banking Union aiming to enhance the level of deposit protection;
Amendment 95 #
Motion for a resolution Paragraph 2 a (new) 2 a. Takes note of the Euro Summit statement of 11 December 2020 which invites the Eurogroup to “prepare, on a consensual basis, a stepwise and time- bound work plan on all outstanding elements needed to complete the Banking Union”; regrets that Member States continue to act outside the Community framework, undermining the Parliament role as co-legislator; asks to be kept informed of the on-going discussions at the level of the Eurogroup and of the High-level Working Group on EDIS;
Amendment 96 #
Motion for a resolution Paragraph 2 a (new) 2 a. Reiterates its request for enhanced cooperation with the Eurogroup President, notably by expanding the frequency of the Economic Dialogues with the Eurogroup President to mirror the model and regularity of the Monetary Dialogues;
Amendment 97 #
Motion for a resolution Paragraph 3 Amendment 98 #
Motion for a resolution Paragraph 3 3. Considers that banks
Amendment 99 #
3. Considers that banks’ response to the current crisis demonstrates that the regulatory reforms in the past decade, as well as the institutional set-up, have resulted in better-capitalised
source: 693.617
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History
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