Activities of Corien WORTMANN-KOOL related to 2013/2021(INI)
Shadow reports (1)
REPORT on reforming the structure of the EU banking sector PDF (197 KB) DOC (112 KB)
Amendments (23)
Amendment 7 #
Motion for a resolution
Recital A
Recital A
A. whereas the Commission estimates that the financial crisis cost EU governmentshas supervised Member States' massive bank bailouts under the EU's state aid rules and has authorised around EUR 1.6 trillion (13 % of EU GDP) in used state aid through bailouts of the fin; whereas the Commission required substanctial sector4 ; __________________ 4 Some Member States, such as the UK, used up to two thirds of restructuring of banks receiving aid, including cutting certain activities, to ensure their future viability without furtheir GDP on account of the size of their financial sectors.public support and to offset distortions of competition caused by the subsidies received;
Amendment 20 #
Motion for a resolution
Recital C
Recital C
C. whereas excessive risk-taking, excessive leverage, inadequate capital and liquidity requirements and, the excessive complexity of the overall banking system were at the root of the financial crisisand the strong interconnection between banks and sovereigns acted as a catalyst for the financial and economic crisis in the European Union;
Amendment 37 #
Motion for a resolution
Recital D
Recital D
D. whereas the current post-crisis weakness inof the structure of EU banksEuropean banking system demonstrates the need for reinformcing the architecture of European financial supervision and crisis management, including structural reforms for certain banks in order to serve the wider needs of the economy;
Amendment 59 #
Motion for a resolution
Recital G
Recital G
G. whereas the HLEG concludes that the financial crisis has demonstrated the problem of cross- contamination between banks' retail and investment activitieat no particular business model fared particularly well, or particularly poorly in the European banking sector; whereas the HLEG analysis revealed excessive risk- taking, often in trading highly complex instruments or real estate related lending not matched with adequate capital protection, excessive reliance on short term funding and strong linkages between financial institutions causing a high level of systemic risk in the run up to the financial crisis;
Amendment 69 #
Motion for a resolution
Recital G a (new)
Recital G a (new)
Ga. whereas the HLEG underlines that simple labels, such as retail bank or investment bank, do not adequately describe the business model of a bank and its performance and riskiness; whereas business models are diverse along different key dimensions, such as size, activities, income model, capital and funding structure, ownership, corporate structure, and geographic scope, and have evolved substantially over time;
Amendment 74 #
Motion for a resolution
Recital H
Recital H
H. whereas the Commission proposal should provide for a strong, stable and resilient banking sector for the internal market while respecting the diversity ofin the Member States' banking sectorsEuropean banking sector; whereas maintaining and deepening the internal market for banking services is essential in order to foster economic growth in the Union and provide for adequate funding of the real economy;
Amendment 81 #
Motion for a resolution
Recital H a (new)
Recital H a (new)
Ha. whereas the Commission proposal should provide for a principles based approach to structural reforms of the European banking sector consistent with, and complementary to, already existing and forthcoming Union legislation for financial services; whereas EBA should play a key role by developing relevant technical standards to ensure consistent application and enforcement by the competent authorities, including the ECB, across the Union;
Amendment 120 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Takes the view that while currentexisting and forthcoming proposals for reforms of EU banking sector rules (including the Capital Requirements Directive and Regulation, the Recovery and Resolution Directive, the Single Supervisory Mechanism, the Deposit Guarantee Schemes Directive and shadow banking initiatives, as well as the European Market Infrastructure Regulation and the Markets in Financial Instruments Directive and Regulation) are vital, a morend contribute to a fundamental reform of the banking structure is essentialEuropean banking sector; underlines that additional proposals for structural reform of the banking sector must be consistent with, and complementary to, the other proposals;
Amendment 134 #
Motion for a resolution
Paragraph 2 a (new)
Paragraph 2 a (new)
2a. Urges the Commission to come forward with a proposal for a principles based approach to structural reforms of the European banking sector that is consistent with, and complementary to, already existing and forthcoming Union legislation for financial services; takes the view that EBA should play a key role by developing relevant technical standards to ensure consistent application and enforcement by the competent authorities, including the ECB, across the Union;
Amendment 151 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Insists that the Commission's impact assessment includes a thoroughcomprehensive assessment of the cost to boimpact of the public finances and financial stabilitotential structural reforms on funding costs, as well as possible unintended consequences namely ofn the failure of an EU- based bank during the current crisisprovision of credit to the real economy, together with information on the nature of the EU's current universal banking model, including the size and balance sheets of the retail, client-related services and investment activities of all universal banks operating in the EU, broken down by individual bank and country;
Amendment 222 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Urges the Commission to come forward with a proposal for mandatory separation of banks' retail and investment activities; a principles based approach to structural reforms of the European banking sector, including mandatory separation of certain significant activities in the trading book of financial institutions that are not associated to the provision of client- related services, as well as separation of certain activities conditional on the assessment of the recovery and resolution plans;
Amendment 246 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Urges the Commission to come forward with a proposal for such mandatory separation through the establishment of a thorough, transparent and credible ‘ring fence’ around bank activities that are vital for the real economy, such as those relating to credit functions, payment systems and depositof certain significant activities in the trading book of financial institutions that are not associated to the provision of client-related services; takes the view that in the event of a bank failure, the ring fenceseparation must ensure that the retail entity continues businesentity providing retail and other client-related activities that are vital for the real economy remains unaffected by operational problems, financial losses, funding shortages or reputational damage resulting from the resolution or insolvency of the investmentseparated entity;
Amendment 271 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Urges the Commission to ensure that trading activities that are not related to the provision of client-related services do not benefit from implicit guarantees, the use of insured deposits or taxpayer bailouts and that these activities do not pose a risk to the delivery of ring-fenced retailetail and other client-related services;
Amendment 357 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Underlines the necessity of assessing the systemic risk presented by both the retail and investmentseparated entities, as well as by the group as a whole, with a view to the application of appropriate capital buffers and liquidity requirements for each entity;
Amendment 359 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Urges the EBA and the Commission to ensure that the retail entity has sufficient capital and liquid assets to enable it, in the event of the bank's failure, to maintain depositors' access to funds, to protect the essential services of the ring-fenced arm from the risk of disorderly failure and to prioritise paying out depositors in a timely fashionMember States have in place a clear and credible crisis management framework, based on the Recovery and Resolution Directive and the Deposit Insurance Directive to safeguard retail depositors in the event of bank failure;
Amendment 376 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Urges EBA and the Commission to ensure that adequate differentiation exists in terms of capital, leverage and liquidity requirements between the investment and retailseparated entities, with an emphasis on higher capital requirements for the investment entityactivities that pose the highest risks, in line with the provisions of the Capital Requirements Directive and Regulation and the ongoing Basel review of the trading book;
Amendment 421 #
Motion for a resolution
Paragraph 22
Paragraph 22
22. Urges EBA and the Commission to continue the reform ofensure correct implementation of the relevant provisions for banks's compensation and remuneration culture by prioritising long- term incentives for vpolicies from the Capital Requirements Directive; calls on EBA and the Commission to present an annual report to the European Parliable remuneration with larger deferral perment and the Council on the implementation and enforcement of the relevant provisiodns up to retirementby the Member States;
Amendment 427 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Urges the Commission, EBA and the competent authorities to ensure that remuneration systems prioritise the use of instruments such as bonds subject to bail- in, and shares, rather than cash, in line with the provisions of the Capital Requirements Directive;
Amendment 434 #
Motion for a resolution
Paragraph 24
Paragraph 24
24. Urges the Commission, EBA and the competent authorities to ensure that compensation and remuneration systems at all levels of a bank reflect its overall performance and are focused on quality customer service and long-term financial stability rather than short-term profits, in line with the provisions of the Capital Requirements Directive;
Amendment 440 #
Motion for a resolution
Paragraph 26
Paragraph 26
Amendment 447 #
Motion for a resolution
Paragraph 27
Paragraph 27
Amendment 469 #
Motion for a resolution
Paragraph 30
Paragraph 30
30. Urges the Member States to ensure that their national supervisors have the clear objective of promotingCommission, the competent authorities and the Member States to promote and ensure effective competition in their European banking sectors;
Amendment 485 #
Motion for a resolution
Paragraph 32
Paragraph 32
32. Calls on the Commission to bring forward the necessary structural reforms outlined in this report, which, while maintaining the integrity of the internal market, respect the diversity of national banking systems and ensure Member States' ability to reinforce them where appropriatea strong role for EBA to ensure correct application across the Union;