Activities of Valentino GRANT related to 2020/2122(INI)
Shadow reports (1)
REPORT on Banking Union – annual report 2020
Amendments (24)
Amendment 12 #
Motion for a resolution
Recital A
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 major global financial crisis and further supported by extraordinary public policy relief measures and capital conservation practiceshave proved ineffective in combating the causes of the banking crises that have followed, and whereas many of the rules were immediately suspended in order to allow the banking system to prop up the economy during the COVID-19 pandemic;
Amendment 32 #
Motion for a resolution
Recital C
Recital C
Amendment 108 #
Motion for a resolution
Paragraph 3 a (new)
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)
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 118 #
Motion for a resolution
Paragraph 5
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therefore, that all the measures referred to above should remain in force for as long as necessary and should be withdrawn gradually;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 125 #
Motion for a resolution
Paragraph 5 a (new)
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 135 #
Motion for a resolution
Paragraph 6
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 179 #
Motion for a resolution
Paragraph 11
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 need to increase bank lending to the real economy, and in particular SMEs, in part by raising the thresholds for the supporting factor, which would increase their spending capacity;
Amendment 207 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Notes that sound management of credit risk should remain the key priority for the SSMa detailed assessment of the systemic risks to the European banking system should remain the key priority for the SSM, and takes the view that financial risk is being underestimated, in particular as regards the exposure of the shadow banking system;
Amendment 211 #
Motion for a resolution
Paragraph 17
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 therefore for the deferral to December 2024 of the application of Article 500 CRR on the transfer of NPLs, in order to rule out any disproportionate impact on banks' capital, which would in turn have negative repercussions for lending to the real economy, and in particular to SMEs;
Amendment 228 #
Motion for a resolution
Paragraph 18
Paragraph 18
198. 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; takes the view that the prudential framework should be revised accordingly, to make possible and incentivise the granting of such options;
Amendment 237 #
Motion for a resolution
Paragraph 18 a (new)
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 244 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Stresses the benefits of banking consolidation in addressing the overcapacities and fragmentation of the banking sectorproviding incentives to establish properly supervised local banking systems in the European Union, with a view to boosting the credit system by focusing on knowledge of local industries and meeting the needs of networks of SMEs;
Amendment 256 #
Motion for a resolution
Paragraph 22
Paragraph 22
22. Is concerned that as Member States sell increasing amounts ofTakes the view that any kind of risk weighting of the sovereign bonds, their share i on banks’' balance sheets grows, potentially aggravating the doom loop; considers that the creation of Next Generation EU will provide high-quality European assetcould destabilise the European banking system and the sovereign bond market and undermine the very ability of the Member States to finance their own bond issues;
Amendment 308 #
Motion for a resolution
Paragraph 29
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; apprecianotes the advancement of the current resolution planning cycle, and reiterates that MREL requests should be proportionate so that they represents one of the key elements in enhancing banks’ resolvability;
Amendment 312 #
Motion for a resolution
Paragraph 29 a (new)
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 319 #
Motion for a resolution
Paragraph 30
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 326 #
Motion for a resolution
Paragraph 31
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 329 #
Motion for a resolution
Paragraph 32
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 338 #
Motion for a resolution
Paragraph 33
Paragraph 33
33. Considers it necessary to revieallow the public interest assessment so as to enable the application of resolution instruments to a wider groups of banksimplementation under national deposit guarantee schemes of preventive and alternative measures (i.e. financing of the transfer of assets and liabilities from LSI banks in crisis to a third party) in order to ensure an orderly liquidation of small and medium-sized banks with a negative public interest assessment;
Amendment 352 #
Motion for a resolution
Paragraph 35
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 372 #
Motion for a resolution
Paragraph 36
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 380 #
Motion for a resolution
Paragraph 36 a (new)
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)
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;