Activities of Billy KELLEHER related to 2021/2184(INI)
Shadow reports (1)
REPORT on Banking Union – annual report 2021
Amendments (33)
Amendment 7 #
Motion for a resolution
Citation 10 a (new)
Citation 10 a (new)
— having regard to the document 'ECB Banking Supervision: SSM Supervisory Priorities 2022-2024'36b; _________________ 36b https://www.bankingsupervision.europa.e u/banking/priorities/pdf/ssm.supervisory_ priorities2022~0f890c6b70.en.pdf
Amendment 8 #
Motion for a resolution
Citation 10 b (new)
Citation 10 b (new)
— having regard to the study requested by the ECON Committee entitled ‘The digital euro: policy implications and perspectives’36a _________________ 36a https://www.europarl.europa.eu/RegData/ etudes/STUD/2022/703337/IPOL_STU(20 22)703337_EN.pdf
Amendment 39 #
B. whereas the BUanking Union is open to all EU Member States;
Amendment 51 #
Motion for a resolution
Recital C
Recital C
C. whereas the problems of the banking sector may worsen after the temporary support measures introduced during the COVID-19 crisis are liftbanking sector has remained resilient over the course of the pandemic, the lifting of the temporary support measures introduced during the COVID-19 crisis may expose the sector to vulnerabilities that will need to be closely monitored and managed;
Amendment 61 #
Motion for a resolution
Recital D
Recital D
D. whereas some financial institutions in the BUanking Union are heavily invested in the debt of their own home sovereign;
Amendment 69 #
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-neutral and digitalised economy;
Amendment 71 #
Motion for a resolution
Recital E a (new)
Recital E a (new)
Amendment 85 #
Motion for a resolution
Recital G
Recital G
G. whereas there is a need for an effective and robust anti-money laundering supervision; ory framework throughout the European banking sector and weaknesses in the framework must be addressed;
Amendment 110 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Recalls that one goal of the BUanking Union is the security of the banking system and the prevention of bank bailouts by taxpayers; supports efforts to strengthen the BUanking Union; stresses that a solid BUanking Union will result in increased confidence in the banking sector;
Amendment 115 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Considers that the BU should be built in a friendly and attractive way, including for Member States outsideanking Union should be completed as soon as possible, as a means to improve the stability of the euro area, to promote the international role of the euro, areand to complement the Capital Markets Union;
Amendment 124 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Stresses that theNotes that European banks entered the Covid-19 crisis with strong capital positions as a result of the regulatory reforms adopted in the wake of the previous global financial crisis; Stresses that the banking sector maintained relatively good performance of banks during the COVID- 19 crisis ias related toa result of the policies implemented by the Member States during the pandemic, as well as to temporary measures introduced under Regulation (EU) 575/2013 (Capital Requirements Regulation), and additional capital space provided by the ECB;
Amendment 133 #
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3 a. Notes that there is a prospect of gradually phasing out emergency measures and returning to pre-COVID-19 capital requirements;
Amendment 137 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Recalls the key role ofplayed by the EU banking sector in financing the recovery of the Europeancontinuing to support the real economy during the pandemic and now in financing the recovery of the European economy and the transition to a digitalised and carbon- neutral economy;
Amendment 149 #
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 tomay increase after the withdrawal of the emergency measures; welcomes in this regard, the 2022-2024 supervisory priorities of the ECB that fully acknowledge the potential risks posed to banks as the economy emerges from the pandemic and the focus of their supervisory activities on these vulnerabilities36c; _________________ 36c https://www.bankingsupervision.europa.e u/banking/priorities/html/ssm.supervisory _priorities2022~0f890c6b70.en.html
Amendment 161 #
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5 a. Considers the reduction of NPLs should remain a priority; warns that their number is likely to increase rapidly after the withdrawal of emergency support measures; draws attention to the importance of prudential compliance, early identification and proactive management of NPLs;
Amendment 162 #
Motion for a resolution
Paragraph 5 b (new)
Paragraph 5 b (new)
5 b. Welcomes the adoption of the Directive (EU) 2018/063 on credit purchasers, credit servicers and the recovery of collateral as a means to prevent future increases of non- performing banks in the balance sheets of EU banks;
Amendment 166 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Supports ongoing work on the implementation of the Basel III rules; stresses that the international standards must be implemented in the EU in a timely manner whilst ensuring that the EU banking sector remains competitive vis-à-vis its global competitors; highlights the persistent out-performing of EU banks by US banks, with recent figures showing that the median return on equity of US banks was over 5% higher than that of EU banks36d; _________________ 36d European Central Bank, Financial Stability Review, November 2021, p9, Chart 4, https://www.ecb.europa.eu/pub/pdf/fsr/ecb .fsr202111~8b0aebc817.en.pdf
Amendment 183 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Notes that the banking sector is adapting to the challenges of digitalisation; stresses the need for further investments, research and adequate regulations; appreciates the work on the digital finance package; considers that the priorityies should be customer safety, inclusiveness and technological neutrality; observes with interest the work on the digital euro;
Amendment 201 #
Motion for a resolution
Paragraph 9
Paragraph 9
Amendment 207 #
Motion for a resolution
Paragraph 10
Paragraph 10
Amendment 218 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Is concerned about the rising level of sovereign debt on the balance sheets of banks in the BUeuro area; notes that government bonds are not risk-free assets and that risks are differentiated; emphasises that the issue of regulatory treatment of sovereign exposures requires an in-depth examination of the consequences of different approaches to ensure the prevention of the so-called 'doom-loop'; takes note of the work of the Basel Committee on Banking Supervision (BCBS) on sovereign risk in this regard, and stresses that the EU regulatory framework on prudential treatment of sovereign debt should be consistent with international standards; calls for further reflection and discussion on the creation of a European safe asset based on the experience of the issuance of recovery bonds;
Amendment 234 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Notes that the transition to a low- carbon economy presents new challenges and risks related to the preference for sustainable investments; stresses the need for an in-depth analysis of the economic efficiency of sustainable investments in order to avoid a future bubble of green assetemphasises the importance of the banking sector, to complement public investment, in helping fund the crucial transition to a carbon- neutral economy; stresses the need for an in-depth analysis of the economic efficiency of sustainable investments in order to avoid a future bubble of green assets and welcomes the ECB’s commitment to carrying out climate-stress tests in 2022 as an important element to tackling climate-related risk; stresses the need for further improvements in the disclosure of climate-related and environmental risks by banks, as well as improvements in the disclosure of transition strategies by entities to facilitate banks’ and supervisors’ assessment of risk; ; calls for banks to take the double materiality perspective when assessing their climate risks; calls for clear guidelines for banks based on economic data;
Amendment 256 #
13. Recalls that the impact of special measures during the pandemic should be taken into account in the assessment of the current condition of banks; stresses that these measures distort the picture, as the decline in real economic activity does not fully translate into banks’ balance sheets;
Amendment 261 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Draws attention to the dangers of a very loose monetary policy stimulating inflation; points out the need for the gradual tightening of monetary policy, and welcomes the remarks made by President Lagarde in the last monetary dialogue, where she stated that the ECB will use any tools and instruments needed in order to ensure that its monetary policy is transmitted;
Amendment 269 #
Motion for a resolution
Paragraph 14 a (new)
Paragraph 14 a (new)
14 a. Highlights the disparity in interest rates offered across the EU with banks in some Member States charging double the euro area average; acknowledges that these disparities are, inter alia, a result of legacy issues stemming from the financial crisis; urges the Commission and banking supervisors to consider measures to ease the burden on mortgage holders and SMEs in these Member States to ensure that all citizens and businesses can access much needed capital at fair and competitive rates;
Amendment 279 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Indicates that the trend towardsneed for cross- border consolidation in the banking sector is likely to increasehas become more pressing as a result of the pandemic; recognises the challenges posed to banking supervision by large systemically important institutions, whose possible problems may affect financial stability in many jurisdictions;
Amendment 286 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Notes the problems and challenges related to home/host issuStresses the need for improvements in the cross-border provision of services to create a truly EU- wide banking sector and to improve the competitiveness of the sector and consumer choice; notes the problems and challenges related to home/host issues that have hindered the ability to offer cross- border services; points out that greater market integration requires credible safeguards in EU law for host Member States;
Amendment 300 #
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; highlights that the establishment of an anti-money laundering authority (AMLA) at EU level will significantly increase the quality of the supervision over EU banks and ensure consistent supervision across the EU;
Amendment 307 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. Underlines the need to protect consumersat it should be borne in mind that the ultimate beneficiaries of a complete Banking Union should be the consumers and businesses of the real economy; highlights in this regard, that all measures taken towards the completion of the Banking Union should ensure that consumers are adequately protected from abuses and harmful practices;
Amendment 319 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Welcomes the activities of the SRB in 2021, including the further completion of the Single Resolution Fund; takes note of the SRB’s work programme for the coming years, which includes making the effective resolution of all banks under the SRB possible by 2023; calls for the SRB to be entrusted with coordination powers over national authorities;
Amendment 327 #
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 and relies on objective thresholds; calls for the public interest assessment to be positive for all banks supervised by the Single Supervision Mechanism and cross-border groups; 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 344 #
Motion for a resolution
Paragraph 21 a (new)
Paragraph 21 a (new)
21 a. Welcomes the adoption of the so- called “Daisy Chain” proposal by the Commission as a means to improve the resolution framework and creating a supervisory level playing field for the different resolution strategies;
Amendment 382 #
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 enableis a necessary step for reaching an agreement on EDIS;