Activities of Ville NIINISTÖ related to 2021/2184(INI)
Shadow reports (1)
REPORT on Banking Union – annual report 2021
Amendments (35)
Amendment 10 #
Motion for a resolution
Citation 15 a (new)
Citation 15 a (new)
— having regard to the Paris Agreement as well as the Glasgow Climate Pact adopted under the United Nations Framework Convention on Climate Change,
Amendment 23 #
Motion for a resolution
Recital A
Recital A
A. whereas the bBanking uUnion (BU) currently consists of the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRMremains incomplete as long as it lacks a European Deposit Insurance Scheme (EDIS);
Amendment 53 #
Motion for a resolution
Recital C a (new)
Recital C a (new)
C 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 65 #
Motion for a resolution
Recital E
Recital E
E. whereas the role of the banking sector is crucial to the recovery and transition to a low-carbon economyneutral economy, in line with the objectives of the Paris Agreement and the European Green Deal;
Amendment 87 #
Motion for a resolution
Recital G
Recital G
G. whereas there is a need for effectiveprudential and anti-money laundering supervision is necessary and should be further strengthened;
Amendment 99 #
Motion for a resolution
Recital I a (new)
Recital I a (new)
I a. whereas the sovereign-bank doom loop has not been properly addressed yet
Amendment 117 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Considers that the BU should be built in a friendly and attractive way, including fora complete and deeply integrated Banking Union would benefit all members of the Banking Union, while incentivising the accession of Member States outside the euro area;
Amendment 132 #
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3 a. Welcomes the ECB’s quick and substantial monetary policy response to the COVID-19 crisis, in a context of emergency; acknowledges the positive impact of this response on the economic situation of the euro area; welcomes the intention of the ECB to retain its support as long as it deems necessary to meet its mandate;
Amendment 134 #
Motion for a resolution
Paragraph 3 b (new)
Paragraph 3 b (new)
3 b. Regrets the fact that as long as fossil fuel companies benefit from very favourable financing conditions, the ECB targeted long-term refinancing operations are actively creating an implicit subsidy for the companies engaging in the most climate damaging activities;
Amendment 142 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Recalls the key role of the EU banking sector in financing the recovery, resilience, and twin transition of the European economy;
Amendment 155 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Notes that the EBA, the ECB and the SRB still see many problems in the banking system, such as high stocks of non-performing loans (NPLs), exposures to sectors which are sensitive to the COVID- 19 crisis, deficiencies in risk management, and discrepancies in the implementation of International Financial Reporting Standard 9 (IFRS 9); underlines with concern that these problems are likely to increase after the withdrawal of the emergency measures, such as payment moratoria and public guarantee schemes;
Amendment 169 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Supports ongoing work on the implementation of the Basel III rules; stresses that the CRR and CRD review should fully reflect Basel III standards; emphasises that any consideration of EU banks' specificities shall be very limited and should not water down the new requirements on output floor, credit and operational risk; calls for the reflection of banks exposures to stranded assets in the capital requirements;
Amendment 192 #
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; reiterates the Parliament’s commitment not to take into account lists of candidates where the gender balance principle has not been respected; calls on the Commission, in view of the upcoming appointment of the new Chair of the Single Resolution Board, to submit a gender-balanced shortlist of candidates;
Amendment 227 #
Motion for a resolution
Paragraph 11 a (new)
Paragraph 11 a (new)
Amendment 229 #
Motion for a resolution
Paragraph 11 b (new)
Paragraph 11 b (new)
11 b. Stresses that the temporary ban to dividend distributions was instrumental to safeguard banks’ capacity to absorb losses and lend to support the economy during the peak of the pandemic crisis; is concerned that the reintroduction of dividend distributions in September 2021 has been premature at a time where supervisors have little information on the actual level of credit risk because of the effect of the temporary relief measures; stresses that banks are still being financed in extremely favourable conditions because they finance the real economy and not for their own profit; calls on the Commission to look into the introduction of a legally binding dividend and buy- back ban as a supervisory tool during times of crisis in the context of the CRR;
Amendment 233 #
Motion for a resolution
Paragraph 12
Paragraph 12
Amendment 245 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12 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 in that its implementation is consistent with the objectives of the Paris agreement and the European Green Deal; calls for the development of a social taxonomy that would spell out what constitutes a social investment, as has been done in the case of environmental investments;
Amendment 247 #
Motion for a resolution
Paragraph 12 b (new)
Paragraph 12 b (new)
12 b. Calls for the integration of climate and ecological risk in capital requirements; warns that financial institutions feed a vicious circle, aggravating climate change by financing fossil fuel related activities despite the recognition that climate change poses a major threat to financial stability; notes in this respect 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; calls, therefore, for the integration of climate risks in banks capital requirements by introducing a risk-based re-evaluation of the risk-weights attributed to fossil fuel exposures under the Capital Requirements Regulation that should differentiate between existing and new fossil fuels exposures;
Amendment 249 #
Motion for a resolution
Paragraph 12 c (new)
Paragraph 12 c (new)
12 c. Welcomes the Commission’s proposal for a Green Bond Standards (GBS) in that it requires that issuers must allocate 100% of the funds raised by their bond to economic activities that meet the EU Taxonomy requirements; stresses that the development of a uniform framework will significantly facilitate the ability to raise large-scale financing that will encourage economic activity contributing to the achievement of the European Green Deal; notes, however, that currently none of the bond instruments marketed as environmentally sustainable, totalling more than EUR 700 billion, provide any standardised information on the alignment of the use-of-proceeds with the EU taxonomy; calls therefore, for the transformation of the EU-GBS into a mandatory standard three years after the entry into force of the Regulation in line with the TEG recommendations;
Amendment 250 #
Motion for a resolution
Paragraph 12 d (new)
Paragraph 12 d (new)
12 d. Notes that 82% of the European debt-capital market provides no information on the instruments’ alignment with European environmental and climate policy goals; considers additional requirements indispensable for ensuring a level playing field in bond markets; is of the opinion that all types of bond instruments, not only those labelled as green, shall disclose their level of alignment with the EU Taxonomy;
Amendment 251 #
Motion for a resolution
Paragraph 12 e (new)
Paragraph 12 e (new)
12 e. Welcomes the revision of the Corporate Sustainability Reporting Directive as way to ensure consistency, comparability and reliability of sustainability information across the financial and non-financial sector; supports the extension of reporting standards to SMEs which constitutes an opportunity for such financial and non financial undertakings to demonstrate their commitment to the ecological and social sustainability and thereby ensure investor protection and feed into their competitive advantage;
Amendment 252 #
Motion for a resolution
Paragraph 12 f (new)
Paragraph 12 f (new)
12 f. 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 that credit rating agencies’ models properly account for all ESG risks;
Amendment 258 #
Motion for a resolution
Paragraph 14
Paragraph 14
Amendment 284 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Notes the problems and challenges related to home/host issues; points out that greater market integration requires credible safeguards in EU law for host Member Statesconsiders that the home/host tension will not be allayed until the European risk sharing architecture has been completed and sees the establishment of a fully-fledged EDIS as an integral part of the solution; further calls for a better inclusion of 'local risk' into the group’s requirements that would reduce the need to 'ring-fence', a review of the SRM governance to accommodate voting modalities with a more direct involvement of both host and home authorities, and harmonisation of insolvency law to facilitate resolution- planning for cross-border banking groups within the Banking Union;
Amendment 299 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Stresses the need for effective anti- money laundering supervision; notwelcomes the Commission’s adoption of the anti- money laundering (AML) package of proposals, in particular the establishment of an EU Anti-Money Laundering authority and the transfer of parts of the AML Directive into a Regulation;
Amendment 301 #
Motion for a resolution
Paragraph 17 a (new)
Paragraph 17 a (new)
17 a. Regrets that not all Member States have yet fully transposed the Anti-Money Laundering Directive V and even more Member States have serious shortcomings in their effective implementation; calls for the Commission to ensure that all existing anti-money laundering rules are applied and to open infringement cases in those Member States where those rules are not effectively implemented; stresses the need for better coordination of law enforcement across Europe and calls for the establishment of a European Criminal Office as the next step in the fight against organised crime and money laundering;
Amendment 305 #
Motion for a resolution
Paragraph 17 b (new)
Paragraph 17 b (new)
Amendment 306 #
Motion for a resolution
Paragraph 17 c (new)
Paragraph 17 c (new)
17 c. 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 326 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Supports the specification of the public interest assessment criteria so that the SRM is applied in a more consistent and predictable manner; proposes that an alternative liquidation regime for small and medium-sized banks be considered; asks for a more proportionate setting of the minimum requirement for own funds and eligible liabilities (MREL) level;
Amendment 332 #
Motion for a resolution
Paragraph 20 a (new)
Paragraph 20 a (new)
20 a. Points out that for resolution plans to be fully compliant with the legal requirements, the SRB needs to provide a comprehensive assessment of 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 heatmap1a; underlines that gradual phase-in of resolution planning and assessment is not foreseen in the current legal framework; is deeply concerned by the fact that addressing impediments to resolvability remains at “pilot stage” which means 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 2022 cycle; [1] SRB blog, 18 March; _________________ 1a SRB blog, 18 March
Amendment 342 #
Motion for a resolution
Paragraph 21 a (new)
Paragraph 21 a (new)
21 a. Underlines the need to coherently revisit the Commission’s 2013 Banking Communication to reflect progress in the implementation and improvement of the crisis management framework and to achieve consistency with respect to the Bank Recovery and Resolution Directive (BRRD) requirements, taking due account of recent rulings of the Court of Justice of the European Union; stresses that the review of the Banking Communication is long overdue, as it was drafted before the entry into force of the BRRD; regrets that the timeline for such review is not clear in the Commission’s working programme on competition policy;
Amendment 349 #
22. Recalls that the SSM and the SRM operate at EU level, while deposit guarantee schemes (DGSs) are operated at national level; recognises that ais deeply concerned that the Banking Union still lacks its third pillar, namely a robust European deposit insurance scheme (EDIS) that would improve protection for depositors in the EUwherever their bank is located in the EU and significantly reduce the negative link between banks and their home sovereign; stresses that a complete, harmonised, integrated banking industry would also support the Single Market;
Amendment 359 #
Motion for a resolution
Paragraph 22 a (new)
Paragraph 22 a (new)
22 a. Welcomes the inclusion of the proposal for a regulation establishing a European Deposit Insurance Scheme in the Joint Declaration identifying key legislative priorities for 2022; calls for a swift relaunch of the negotiations on EDIS;
Amendment 365 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Notes the ongoing discussion of various concepts for the EDIS; takes the view that a fully-fledged model of EDIS should remain the ultimate goal;
Amendment 377 #
Motion for a resolution
Paragraph 24
Paragraph 24
24. Considers that the main obstacles for EDIS are concerns about risks in some banking systems; stresses that the implementation of credible and effective risk reduction measures could enable an agreement on EDIS;