Activities of Frances FITZGERALD related to 2022/2061(INI)
Shadow reports (1)
REPORT on Banking Union – annual report 2022
Amendments (49)
Amendment 2 #
Motion for a resolution
Citation 8 a (new)
Citation 8 a (new)
— having regard to the Council press release of 7 December 2022 entitled ‘Anti- money laundering: Council agrees its position on a strengthened rulebook’ ,
Amendment 8 #
Motion for a resolution
Citation 12 a (new)
Citation 12 a (new)
— having regard to the ECB's report on its supervisory priorities for 2023-25 on 12 December 2022,2a _________________ 2a https://www.bankingsupervision.europa.e u/banking/priorities/html/ssm.supervisory _priorities202212~3a1e609cf8.en.html
Amendment 9 #
Motion for a resolution
Citation 12 b (new)
Citation 12 b (new)
— having regard to the feedback to the Commission's consultation on 'A digital euro for the EU' held between 5 April 2022 - 16 June 2022,3a _________________ 3a https://ec.europa.eu/info/law/better- regulation/have-your- say/initiatives/13392-A-digital-euro-for- the-EU_en
Amendment 10 #
Motion for a resolution
Citation 12 c (new)
Citation 12 c (new)
— having regard to the final agreement reached on the Digital Operational Resilience Act (Regulation (EU) 2022/2554 of the European Parliament and of the Council) and its publication in the Official Journal of the European Union,
Amendment 23 #
Motion for a resolution
Recital A
Recital A
A. whereas the Banking Union (BU) currently consists of the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism, with the single rulebook as its foundation, ensures full alignment between supervision and management of banking crisis and is an integral part of the Union's financial stability; whereas although the Deposit Guarantee Schemes Directive4 sets out high minimum standards in the area of deposit protection, the BU remains unfinished because the third pillar – the European deposit insurance scheme (EDIS) – has not yet been established; _________________ 4 Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes (OJ L 173, 12.6.2014, p. 149).
Amendment 25 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
A a. whereas despite best efforts, agreement on a European Deposit Insurance Scheme (EDIS) has not yet been achieved; whereas MEPs have called for an ambitious review of the Crisis Management and Deposit Insurance (CMDI) framework which may help to overcome hurdles to the establishment of EDIS while recognising that this framework should not be considered as a replacement for a EDIS, and that the 2015 EDIS proposal should not be withdrawn and should be combined with appropriate risk reduction measures;
Amendment 30 #
Motion for a resolution
Recital A b (new)
Recital A b (new)
Amendment 32 #
Motion for a resolution
Recital B a (new)
Recital B a (new)
B a. whereas a stable, resilient, dynamic, and competitive banking sector is vital for economic growth, for supporting small and medium sized businesses, for increasing the possibility of home-ownership, for innovation, for investment, and for the widening of economic opportunities for all;
Amendment 36 #
Motion for a resolution
Recital C
Recital C
C. whereas the Russian aggression against Ukraine and its economic and social consequences will have a direct and indirect impact on the EU banking sector; whereas EU banks play a pivotal role in ensuring the ongoing implementation of and compliance with the sanctions imposed by the EU against Russia in response to the invasion;
Amendment 38 #
Motion for a resolution
Recital D
Recital D
D. whereas the banking sector has been resilient to the crisis triggered by the COVID-19 pandemic with the help of extraordinary public policy relief measures and a resilient EU regulatory framework, and without having endured a corresponding financial crisis; whereas, as the EU banking sector continues to emerge from the pandemic, the Union must continue to uphold high standards, particularly when it comes to capital requirements and risk management practices, to ensure the resilience of the sector into the future;
Amendment 40 #
D a. whereas the banking sector faces further risks following the pandemic, particularly in relation to asset quality deterioration and potential increases in NPL ratios after the temporary support measures introduced during the COVID- 19 crisis are phased out;
Amendment 49 #
Motion for a resolution
Recital F
Recital F
F. whereas the role of the banking sector is crucial to the transition to a sustainable economy; whereas on 2 November 2022, the ECB published the review of climate-related and environmental (C&E) risk management in the banking sector, concluding that 85% of banks now have practices in place in most areas, though they are still lacking more sophisticated methodologies and granular information on climate and environmental risks;4a _________________ 4a https://www.bankingsupervision.europa.e u/press/pr/date/2022/html/ssm.pr221102~ 2f7070c567.en.html#:~:text=In%20a%20s econd%20step%2C%20and,to%20engage %20with%20their%20clients.
Amendment 53 #
Motion for a resolution
Recital G
Recital G
G. whereas the digitalisation of finance provides extensive opportunities for the banking sector, but also poses challenges, including with regard to cyber risk and has brought about important technological advances in the EU banking sector through increased efficiency in the provision of banking services and a greater appetite for innovation, it also poses challenges, including with regard to cyber risks, data privacy, reputational risks, AML risks and consumer protection concerns;
Amendment 61 #
Motion for a resolution
Recital H a (new)
Recital H a (new)
H a. whereas work is continuing on the EU Banking Package, which will ensure an appropriate framework for bank capital adequacy, stress testing, and liquidity requirements;
Amendment 62 #
Motion for a resolution
Recital H b (new)
Recital H b (new)
H b. whereas financial institutions rely increasingly on the use of information and communications technology (ICT) which heightens the risk of cyber-attacks; whereas the EU banking sector must increase its cyber resilience to ensure that ICT systems can withstand various types of cyber security threats;
Amendment 67 #
Motion for a resolution
Recital I
Recital I
I. whereas ensuring high-level and equal protection of all investors and depositors is at the core of the BUanking Union; and the Capital Markets Union; whereas consumers, investors, and depositors should be kept well informed of any decisions that impact them;
Amendment 74 #
Motion for a resolution
Recital J
Recital J
J. whereas completing the BU willand reducing the concentration of sovereign exposures on bank balance sheets would help to contribute to breaking the sovereign-bank doom loop;
Amendment 79 #
Motion for a resolution
Recital J
Recital J
J. whereas completing the BU will break the sovereign-bank doom loop; whereas the Banking Union should help to address this bank-sovereign nexus, which continues to exist; whereas the level of sovereign exposure has been growing in a number of banks; whereas the prudential treatment of sovereign debt must include capital requirements and be consistent with international standards;
Amendment 84 #
Motion for a resolution
Recital J a (new)
Recital J a (new)
J a. whereas one of the key objectives of the Banking Union is that taxpayers should not bear the cost of remedial action when a bank fails;
Amendment 87 #
Motion for a resolution
Recital J b (new)
Recital J b (new)
J b. whereas the crisis management and deposit insurance (CMDI) framework should ensure a consistent and efficient approach for all banks, regardless of size or business model, as well as contributing to preserving financial stability, minimising the use of taxpayers’ money and ensuring a level playing field across the EU, while duly taking into account the principle of subsidiarity;
Amendment 88 #
Motion for a resolution
Recital J c (new)
Recital J c (new)
J c. whereas the EU and the UK are currently committed to maintaining regulatory and supervisory cooperation in the field of financial services, and this cooperative approach should underpin long-term EU-UK relations; whereas the Commission will extend its temporary permit allowing EU banks and fund managers to use UK clearing houses; whereas a promised EU-UK Memorandum of Understanding on regulatory co-operation has not yet been signed;
Amendment 90 #
Motion for a resolution
Recital J d (new)
Recital J d (new)
J d. whereas given the remaining loopholes in the EU AML framework, there is a need for strengthened, harmonised and effective anti-money laundering supervision and enforcement, which is necessary to protect the integrity of the EU’s financial system and to protect against threats from high-risk third countries; whereas major differences still exist in the approaches taken to AML/combating the financing of terrorism (CFT) supervision by EU national authorities and in the application of EU AML legislation;
Amendment 95 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1 a. Stresses that the completion of the Capital Markets Union alongside the development of the Banking Union will help to deliver better conditions for the financing of the European economy, for both households and companies that are still largely reliant on bank credit to foster investments and job creation, while also contributing to the resilience of the European economy;
Amendment 96 #
Motion for a resolution
Paragraph 1 b (new)
Paragraph 1 b (new)
1 b. Recalls that a key goal of the BU is the security of the banking system and the prevention of bank bailouts by taxpayers; recognises that through the establishment of the SSM and the SRM, Europe's banks are now in a strong position to withstand financial shocks; notes, however, that the third pillar of Banking Union (EDIS) is still pending and therefore supports efforts to strengthen the BU along with risk reduction measures; stresses that a solid BU will result in increased confidence in the banking sector and will ensure that EU banks are stronger and better supervised;
Amendment 100 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Notes that the banking sector, in conjunction with public support measures, has acted as a shock absorber for the economic crisis triggered by the COVID- 19 pandemic; acknowledges that strengthening the prudential requirements implemented after 2008 has improved the EU banking sector’s resilience; is concerned, however, that the share of non-performing loans might increase when the COVID-19 pandemic public support measures are being phased out;
Amendment 107 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Stresses that the EU should fairly and fulcomprehensively implement the Basel III reforms in a timely mannerand appropriate manner while also taking into account the specificities and diversity of the European banking sector and ensuring that there is no significant increase in overall capital requirements;
Amendment 126 #
Motion for a resolution
Paragraph 4 a (new)
Paragraph 4 a (new)
4 a. Notes that the ECB’s final ‘Euro area bank lending survey’ of 2022 showed that banks tightened substantially their approval criteria for loans to firms and households, due to higher risk perceptions, declining risk tolerance and increased funding costs, loan demand decreased for firms and households, and banks' access to retail funding deteriorated moderately;5a recalls the key role of the EU banking sector in financing the recovery of the European economy and considers that the recovery will also depend on banks having sufficient capital to provide credit, particularly as public support measures in Member States are gradually removed; _________________ 5a https://www.ecb.europa.eu/stats/ecb_surve ys/bank_lending_survey/html/index.en.ht ml
Amendment 132 #
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5 a. Highlights that the interest rates offered to households and SMEs across the Member States are highly disparate; urges the Commission and banking supervisors to consider measures to ease the burden on mortgage holders and SMEs in Member States with higher lending rates so as to ensure that all citizens and businesses can access much- needed capital at fair and competitive rates;
Amendment 146 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6 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 benefit from retail financial services across borders; notes, furthermore, the high discrepancy in mortgage interest rates across the Union;
Amendment 148 #
Motion for a resolution
Paragraph 6 b (new)
Paragraph 6 b (new)
6 b. Notes the consolidation of retail banking services in certain Member States and the consequential reduction of consumer choice for retail banking customers and the challenges posed to banking supervision by large systemically important institutions; regrets the remaining barriers to cross-border retail banking services; emphasises the potential for an integrated Banking Union to improve competition and consumer choice in the area of retail banking, including through improved opportunities for the provision of cross-border retail banking services; stresses the benefits of a diversified and competitive banking sector in Europe;
Amendment 156 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. EWelcomes that the banking sector is adapting to the challenges and opportunities of digitalisation which will enable banks to better serve their customers; encourages banks to further take advantage of the opportunities offered by the digitalisation of the economy, while maintaining a high level of consumer and investor protection through investment in IT systems, R&;D, the full implementation of requirements under DORA, and the development of a regulatory framework that is fit-for- purpose to respond to digitalisation trends and based on technological neutrality; welcomes the progress made on the digital finance package; considers that consumer protection must be strengthened in a digital context and that financial inclusion should be prioritised, particularly through improved digital and financial literacy; observes with interest the work on the digital euro;
Amendment 160 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8 a. Recalls that risk reduction in the banking sector would contribute to a more stable, strong and economic growth oriented Banking Union; in this regard asks co-legislators to 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 164 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8 a. Regrets the failure to ensure full gender balance in EU financial institutions and bodies, and in particular the fact that women continue to be underrepresented in executive positions in the field of banking and financial services; stresses that gender balance on boards and in the workforce brings both societal and economic returns; calls on financial institutions to regularly update their diversity and inclusion policies and to help foster healthy working cultures which prioritise inclusivity;
Amendment 165 #
Motion for a resolution
Paragraph 8 b (new)
Paragraph 8 b (new)
8 b. Calls on EU institutions and bodies to prioritise the achievement of full gender balance as soon as possible, including by providing gender-balanced shortlists of candidates for all future appointments requiring Parliament’s consent, including at the ECB and the EU’s top financial institutions, endeavouring to include at least one female and one male candidate per nomination procedure; recalls its resolution of 14 March 2019 aiming to secure gender balance in the forthcoming list of candidates for EU economic and monetary affairs nominations and reiterates its commitment not to take into account lists of candidates where the gender balance principle has not been respected;
Amendment 191 #
11. Notes that banks’ exposures to domestic sovereign debt remain highIs greatly concerned about the significant level of sovereign debt on the balance sheets of banks in the Banking Union; strongly emphasises that the issue of regulatory treatment of sovereign exposures (RTSE) requires the urgent introduction of capital requirements on sovereign debt, in line with international standards, and an in-depth examination within international fora; recalls that one of the main objectives of the BU is to break the link between bank and sovereign risks;
Amendment 207 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Highlights that banks have a crucial role to play in enabling the transition towards a sustainable economy; calls for environmental, social and governance (ESG) risks to be included in the prudential framework and ensuring that the EU is able to fulfil its environmental commitments; notes that such a transition requires significant investment; calls for environmental, social and governance (ESG) risks to be taken into account by financial institutions in their risk management functions;
Amendment 217 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Stresses the link between AML and prudential risks; urges prudential supervisors to fully take into account AML risks in their supervisory activities and to coordinate with AML authorities and authorities countering the financing of terrorism; calls for the co-legislators to swiftly agree on the AML package, including the creation of a new AML authority, which must be resourced properly; stresses that banks act as gatekeepers in the fight against money laundering and therefore must have in place robust risk management frameworks and be supervised effectively;
Amendment 223 #
Motion for a resolution
Paragraph 14 a (new)
Paragraph 14 a (new)
14 a. Calls for the full ratification of the Amending Agreement to the ESM Treaty by all Member States including the establishment of a common backstop to the Single Resolution Fund;
Amendment 230 #
Motion for a resolution
Paragraph 15 a (new)
Paragraph 15 a (new)
15 a. Highlights the need for continued supervisory convergence between national competent authorities in order to ensure a level playing field between EU jurisdictions and within the internal market, which will ultimately help support financial stability at a European and national level;
Amendment 240 #
Motion for a resolution
Paragraph 16 a (new)
Paragraph 16 a (new)
16 a. Reemphasises that measures improving risk reduction are required for a more secure, robust, and economically viable Banking Union; highlights the need to complete the package of measures to address the risks related to non- performing loans, which the Commission launched in 2018, and in particular the out-of-court enforcement proposal, involving accelerated extrajudicial collateral enforcement strictly limited to loans granted to corporates and only applying if prior agreement between the secured creditor and business borrower is achieved when concluding the loan contract, with consumer loans excluded;
Amendment 247 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Welcomes the activities of the SRB in 2022, including its management of the Sberbank collapse in the aftermath of the Russian war in Ukraine; welcomes that overall banks under the SRB’s remit have delivered good progress towards resolvability and in building up loss- absorbing capacity;
Amendment 260 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Points out the need to address the loopholes identified in the resolution framework; asks that the public interest assessment be further specified and harmonised; calls for options to be considered for greater harmonisation of the treatment of small and medium-size banks; stresses that the resolution framework and State aid rules should be consistent; notes also the importance of maintaining and ensuring a consistent and effective resolution framework for banks, calls for, in particular, a level playing field between different banking group structures and their preferred resolution strategy, which ensures that the level and amount of loss absorbing capacity is equal;
Amendment 282 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Regrets that the BU is still incomplete owing to the absence of an EDIS; recognises that the EDIS would improve protection for depositors in the EU; recalls that the EDIS is the mostwould be a tangible element of the BUanking Union for EU citizens, along with increased competition and consumer choice; considers that the EDIS would provide an additional safeguard to host Member States and could therefore contribute to addressing home/host issues;
Amendment 286 #
Motion for a resolution
Paragraph 23 a (new)
Paragraph 23 a (new)
23 a. Notes the Eurogroup statement on the future of the Banking Union of 16 June 2022 and supports calls by MEPs negotiating the EDIS proposal in the statement on 8 December 2022 for an ambitious review of the Crisis Management and Deposit Insurance (CMDI) framework which may help to overcome hurdles to the establishment of EDIS while recognising that this framework should not be considered as a replacement for an EDIS and that the 2015 EDIS proposal should not be withdrawn; reiterates Parliament's commitment to working towards an agreement on an EDIS, which should be combined with appropriate risk reduction measures;
Amendment 288 #
Motion for a resolution
Paragraph 24
Paragraph 24
24. Acknowledges the progress made regarding the reduction of risks in the banking sector; calls for a risk sharing mechanism, while continuing thregrets that the regulatory treatment of sovereign exposures, however, has not been appropriately addressed to date; calls for work towards further risk-sharing combined with appropriate risk -reduction trend;
Amendment 295 #
Motion for a resolution
Paragraph 24
Paragraph 24
24. Acknowledges the progress made regarding the reduction of risks in the banking sector; emphasises the importance of continued risk reduction measures for the success of the Banking Union; calls for a risk sharing mechanism, while continuing the risk reduction trend;
Amendment 296 #
Motion for a resolution
Paragraph 24 a (new)
Paragraph 24 a (new)
24 a. Stresses the importance of the risk proportionality of contributions to DGSs; warns that the absence of a risk-based approach may create risks of moral hazard and free-riding, leading to the subsidisation of speculative business models by conservative ones; emphasises that contributions to a future EDIS must also be proportional to risk;
Amendment 305 #
Motion for a resolution
Paragraph 26
Paragraph 26
26. Welcomes the statement by the negotiation team announcing the reopening of discussions on the EDIS at Parliament; calls for the co-legislators to reach an agreement on the file before the end of the legislative periokick-start the process working towards the establishment of an EDIS that is realistic, credible and solid;
Amendment 306 #
Motion for a resolution
Paragraph 26
Paragraph 26
26. Welcomes the statement by the negotiation team announcing the reopening of discussions on the EDIS at Parliament; calls for the co-legislators to reach an agreement on the file before the work towards the establishmendt of the legislative perioan EDIS that is realistic, credible and solid;