Activities of Aurore LALUCQ related to 2023/2078(INI)
Shadow reports (1)
REPORT on Banking Union - annual report 2023
Amendments (32)
Amendment 1 #
Motion for a resolution
Citation 11 a (new)
Citation 11 a (new)
– having regard to the ECB Occasional Paper Series 'The Road to Paris: stress testing the transition towards a net-zero economy',
Amendment 2 #
Motion for a resolution
Citation 13 a (new)
Citation 13 a (new)
– having regard to the standards of the Basel Committee on Banking Supervision on the prudential treatment of crypto-asset exposures, of 16 December 2022,
Amendment 3 #
Motion for a resolution
Citation 14 a (new)
Citation 14 a (new)
– having regard to the ECB recommendation of 15 December 2020 on dividend distributions during the COVID- 19 pandemic,
Amendment 4 #
Motion for a resolution
Citation 14 b (new)
Citation 14 b (new)
– having regard to its resolution of 25 March 2021 on strengthening the international role of the euro,
Amendment 12 #
Motion for a resolution
Recital A
Recital A
A. whereas the Banking Union (BU), which currently encompasses the Single Supervisory Mechanism and the Single Resolution Mechanism, needhas to be supplemencompleted by the creation of a European deposit insurance scheme (EDIS) in order to mitigate risk exposure of the financial sector;
Amendment 18 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
A a. whereas an agreement was reached in 2020 on the creation of a backstop for the Single Resolution Fund (SRF), but has still not been implemented;
Amendment 24 #
Motion for a resolution
Recital B
Recital B
B. whereas a completed BU would improve the competitiveness and stability of the banking sector and consumer choice and facilitate access to financing whilst ensuring that public funds are not used to bail out the banking sector;
Amendment 26 #
Motion for a resolution
Recital B a (new)
Recital B a (new)
B a. whereas a decade and a half after the financial crisis, banks are still ‘too big to fail’ and ‘too interconnected’ to fail;
Amendment 29 #
Motion for a resolution
Recital C a (new)
Recital C a (new)
C a. whereas climate change, environmental degradation and the transition to a low-carbon economy are factors to be taken into account when assessing the sustainability of banks’ balance sheets, as a source of risk potentially impacting investments across regions and sectors;
Amendment 41 #
Motion for a resolution
Recital E a (new)
Recital E a (new)
E a. whereas consumers of banking services should be better protected by granting them access to transparent fee structures, fair lending practices, and enhanced customer data protection;
Amendment 42 #
Motion for a resolution
Recital E b (new)
Recital E b (new)
E b. whereas the rise in interest rates has positively impacted the profit margins of banks but had also lead to a deterioration of the balance sheet of certain banks due to unrealised capital losses;
Amendment 53 #
Motion for a resolution
Recital H
Recital H
H. whereas EU legislators negotiated rules tothe EU should ensure timely, full and faithful implementation of Basel III standards in a way that preserves banks’ competitiveness and takes into account the specificities of the EU banking sector;
Amendment 64 #
Motion for a resolution
Recital I
Recital I
I. whereas risks stemming from interest rate hikes have been properly addressedhad a negative impact on the borrowing capacity of households and the capacity of borrowers to repay debt;
Amendment 65 #
Motion for a resolution
Recital I a (new)
Recital I a (new)
I a. whereas the completion of the Capital Markets Union (CMU) requires the establishment of common rules and effective tools to reduce internal market fragmentation and facilitate access to alternative financing;
Amendment 87 #
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3 a. Highlights that the Banking Union remains an essential complement to the Economic and Monetary Union (EMU) and therefore the internal market;
Amendment 101 #
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5 a. Encourages the use of profits to build buffers, thus safeguarding the stability of the financial system; notes that the temporary suspension of dividend distribution and share buy back was effective in safeguarding banks’ resilience during the COVID-19 crisis; calls for the introduction of a binding limitation of dividend distribution and buy back in times of crisis;
Amendment 110 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6 a. Recalls the IMF's World Financial Stability Report published in April 2023, which identifies three possible sources of risk to the financial sector: these include the interconnection of Non- Bank Financial Institutions (NBFI) with banks, the functioning of NBFI themselves, through a mismatch of liquidity, and the risk of incurring losses greater than anticipated; emphasises that the latter point accelerated the bankruptcy of Silicon Valley Bank; notes that the interconnection of NBFI with banks increases the risk of transferring difficulties from one to the other, ultimately limiting the financing capacity for the real economy, potentially causing a significant slowdown;
Amendment 116 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7 a. Reminds that banks do not sufficiently take into account the systemic risk posed by climate change; reminds that the collapse in fossil fuels asset values could cause a crisis of an even bigger magnitude than the subprime crisis; therefore supports an update of the Capital Requirements Regulation to apply a risk weight of 1250% to new fossil fuel exposures, ensuring that such investments are fully equity-funded;
Amendment 119 #
Motion for a resolution
Paragraph 7 b (new)
Paragraph 7 b (new)
7 b. Warns that high exposures to fossil fuels will become a risk for companies, with those fossil fuel assets becoming stranded assets; underlines that in order to fight this new systemic risk fossil fuel assets should be treated as ’higher risk’ assets and assigned a risk weight of 150% in line with the Basel framework;
Amendment 122 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8 a. Restates the importance of a European safe asset in the euro area as a way to help stabilise financial markets and allow banks to reduce the exposure of their balance sheets to national sovereign debt; considers that NextGeneration EU provides high-quality, low-risk European assets, allowing for a rebalancing of sovereign bonds on banks’ balance sheets; highlights the importance of preserving the availability of safe assets in a permanent manner;
Amendment 143 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Highlights that the limited impact of the recent failure of midsized US banks proves the resilience of the EU banking sector; underlines that EU supervisors efficiently addressed risks arising from changes in the interest rate landscape; calls on supervisors to continue assessing exposures to further interest rate hikes; recalls that the ECB's 'Financial Stability Review 2023' emphasises the importance of taking into account the deterioration of bank balance sheets associated with the increase in interest rates and emphasises that macroprudential authorities will need to gradually strengthen capital and/or borrower-related measures; and underscores the need for continued work to enhance the regulatory framework for banks;
Amendment 146 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12 a. Acknowledges the progresses made over the last 15 years through the establishement of the Single Supervisory Mechanism (SSM) and Single Resolution Mechanism (SRM) ; calls for the total completion of the Banking Union, particularly through the setting up of a fully-fledged European Deposit Insurance Scheme (EDIS);
Amendment 150 #
Motion for a resolution
Paragraph 13 a (new)
Paragraph 13 a (new)
13 a. Recalls the need, as expressed by the chair of the European Union’s Single Resolution Board, to fully and entirely respect the write-down hierarchy in case of bank failure;
Amendment 151 #
Motion for a resolution
Paragraph 13 b (new)
Paragraph 13 b (new)
13 b. Recalls that the President of the ECB, Christine Lagarde, during her hearing on 20 March 2023 in the ECON Committee demanded the full application of Basel III in terms of bank capital requirements;
Amendment 153 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. WelcomesTakes note of the agreement reached at interinstitutional level to implement Basel III standards in the EU; highlights that the framework will not increase prudential requirements for banks or damage their competitivenese concerns expressed by the EBA and the ECB that many deviations from the international agreement have been introduced in the final text of the regulation; recalls that EU banks’ specificities were already taken into account in the calibration of Basel capital requirements; notes that the implementation of the Basel standards to crypto-assets is still pending;
Amendment 180 #
Motion for a resolution
Paragraph 19 a (new)
Paragraph 19 a (new)
Amendment 189 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Welcomes the proposal to reform the CMDI framework following calls by Parliament; calls for the scope of resolution to be expanded, clarification of public interest assessments and for the scope of State aid to be limited; considers that financial stability is better preserved if small and medium-size banks with a positive public interest assessment have access to the EU-level resolution framework;
Amendment 190 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Welcomes the proposal to reform the CMDI framework following calls by Parliament; calls for the scope of resolution to be expanded, clarification of public interest assessments and for the scope of State aid to be limited; recalls that the CMDI framework must not preclude the establishment of EDIS;
Amendment 193 #
Motion for a resolution
Paragraph 20 a (new)
Paragraph 20 a (new)
20 a. Stresses that financial institutions benefitting from direct State aid measures must refrain from dividend distribution, share buybacks and variable remuneration payments; calls for this temporary limitation to be established in a legally binding form;
Amendment 209 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Welcomes the Commission’s efforts to clarify the scope of depositor protection and increase convergence through a reform of 2014/49/EU on deposit guarantee schemes3 ; warns that the CMDI review cannot be considered a replacement for EDIS; considers that this review should pave the way toward the establishment of EDIS; _________________ 3 OJ L 173, 12.6.2014, p. 149.
Amendment 214 #
Motion for a resolution
Paragraph 24
Paragraph 24
24. Underlines the need for risk-based contributions to EDISa fully-fledged EDIS that enables loss absorption; calls for institutional protection schemes to be taken into account, while preserving the level playing field within the Single Market; calls for an assessment of bank asset quality; recommends starting with the pooling of liquidity and a gradual build-up of funds;
Amendment 221 #
Motion for a resolution
Paragraph 25
Paragraph 25
25. Notes that effective risk reduction is key for EDISWelcomes the significant progress in risk reduction; regrets, on the other hand, the limited progress regarding risk sharing; reminds the analysis of the SSM, stating that ‘the implementation of EDIS should not be linked to further risk reduction benchmarks’; highlights that the CMDI review provides co-legislators with an opportunity to resume negotiations on EDIS;