Activities of Jean-Paul GAUZÈS related to 2013/2021(INI)
Plenary speeches (1)
Laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (debate)
Amendments (42)
Amendment 1 #
Motion for a resolution
Citation 1 a (new)
Citation 1 a (new)
- having regard to the Directive 2010/76/EU of the European Parliament and of the Council amending Directives 2006/48/EC and 2006/49/EC as regards capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies.
Amendment 9 #
Motion for a resolution
Recital A
Recital A
A. wWhereas the Commission estimates that the financial crisis cost EU governments around EUR 1.6 tr322.18 billion (13 2% of EU GDP) in state aidrecapitalization measures through bailouts tof the financial sector4 , EUR 32 billion of which have been repaid;
Amendment 13 #
Motion for a resolution
Recital B
Recital B
B. whereas in the five years since the 2008 global economic and financial crisis, the EU economy has remainedcontinues to be in a state of recession, with Mmember Sstates providing subsidies and implicit guarantees to banks due to also inadequate implementation of the economic and fiscal framework;
Amendment 19 #
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 crisis; inadequate risk management were at the root of the financial crisis, which had been largely fuelled by excessive real-estate exposures, rather than capital market activities, and by insufficient supervision;
Amendment 28 #
Motion for a resolution
Recital C a (new)
Recital C a (new)
Ca. whereas taking into account the weak situation of the European economy, the completion and implementation of existing new regulation (CRD IV, Banking Union...) should be prioritised and not disturbed by new reforms with high destabilizing capabilities;
Amendment 34 #
Motion for a resolution
Recital D
Recital D
D. whereas the current post-crisis weakness in the structureweakness (capital, liquidity, risk management, supervision) of EU banks post-crisis demonstrates the need for reform in order to serve the wider needs of the economy. The current weakness also highlights the effects that macroeconomic imbalances have on the banking system, on wholesale markets and on consumer trust;
Amendment 53 #
Motion for a resolution
Recital F
Recital F
F. whereas research by the Bank of International Settlements (BIS) suggests that once bank assets exceed a country's GDP, its financial sector has a negative impact on economic growth, as human and financial resources are drained from other areas of economic activity6 ; in addition, the right reference to compare banks size is at the level of Europe as a whole and not at individual national level;
Amendment 62 #
Motion for a resolution
Recital G
Recital G
G. wWhereas the financial crisis demonstrated the problem of cross- contamination between banks' retail and investment activitiesat no particular banking structure had a clear advantage in terms of resilience;
Amendment 77 #
Motion for a resolution
Recital H
Recital H
H. whereas the Commission proposalEU legislation should provide for a strong, stable and resilient banking sector with access to wide variety of funding sources for the internal market while respecting the diversity of the MEU member Sstates' banking sectors;
Amendment 87 #
Motion for a resolution
Recital I
Recital I
I. whereas, since it is neither feasible nor desirable to effect a bank separation post- failure, an effective recovery and resolution regime is needed in order to provide authorities with a credible set of tools, including a bridge bank, so that they can intervene sufficiently early and quickly in an unsound or failing bank to enable its essential financial and economic functions to continue, while minimising the impact on financial stability and ensuring that appropriate losses are imposed on the shareholders and creditors who bore the risk of investing in the institution in question, and not by taxpayers or depositors;
Amendment 95 #
Motion for a resolution
Recital J
Recital J
Amendment 100 #
Motion for a resolution
Recital J a (new)
Recital J a (new)
Ja. whereas capital markets need to be able to meet European financial needs at a time of very constrained bank lending. There is a need in Europe to increase the availability of alternative financing sources, in particular through the development of capital market alternatives, to decrease the dependency on bank funding, as identified in the Commission's green paper on Long-Term Financing of the European Economy;
Amendment 110 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Welcomes the HLEG's analysis and recommendations on banking reform and considers them a sound basis foruseful contribution to initiatinge reforms and fully assess their impact;
Amendment 119 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Takes the view that while current 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) are vital, a more fundamental reform of the banking structure is essential, and complementary to the other proposalsalready leading to fundamental structural changes, a reform of the banking structure should only be considered if it brings about proven incremental benefits in respect of the other proposal and after a thorough assessment of the impact on the European economy;
Amendment 148 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Insists that the Commission's impact assessment include a thorough assessment of the cost to both public finances and financial stability of the failure of an EU- based bank during the current crisis, together with information on the nature of the EU's current universal banking model, including the size and balance sheets of the retail and investment activities of all universal banks operating in the EU, broken down by individual bank and country; the impact assessment should also explore: the present financing needs of the European economy; the effects on the competitive landscape; incremental benefits, considering the regulatory changes already underway (as stressed in the ECB opinion); the impact on diversity of funding sources for the real economy and on European businesses' access to capital markets financing;
Amendment 158 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Reminds the Commission of the warning issued by the European Banking Authority and the European Central Bank (ECB) that financial innovation can undermine the objectives of structural reforms, and insists thatthe necessity for structural reforms to be subject to periodic review7 having regard that it is critical not to create a sense of continuous uncertainty for financial institutions which would be detrimental to strategic planning ;
Amendment 174 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Considers that the core principle of banking reform must be to deliver a safe, stable and efficient banking system that serves the needs of the real economy, customers and consumers; takes the view that shat any reforms, including structural reformones, must stimulate economic growth by supporting the provision of credit and banking services to the economy, in particular to SMEs and start-ups, provide greater resilience against potential financial crises, restore trust and confidence in banks and removduce risks to public finances;
Amendment 205 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7a. Considers that, as stressed by the ECB, published on January, 24, the diversity of business models in the EU should be preserved; no one-size-fits-all solution should be imposed;
Amendment 206 #
Motion for a resolution
Paragraph 7 b (new)
Paragraph 7 b (new)
7b. Considers that free movement of capital and the great potential of the Single Market should not be compromised for the sake of uncoordinated and disproportionate measures taken with a view to preserving financial stability exclusively at national level. The current practices of 'ring-fencing' assets, which could, in practice, restrict cross-border transfers of banks' capital and potentially constrain the free flow of capital throughout the European Union should be forbidden;
Amendment 209 #
Motion for a resolution
Paragraph 7 c (new)
Paragraph 7 c (new)
7c. Considers there is a strong need in Europe for harmonization and common rules. The creation of the Single Supervisory Mechanism (SSM), a Single Rubebook and a Single Resolution Authority reinforces the need for a European approach towards reform of bank structures avoiding a patchwork of national initiatives;
Amendment 211 #
Motion for a resolution
Paragraph 7 d (new)
Paragraph 7 d (new)
7d. Considers that the Liikanen report explained that poor funding structures are one of the main sources of the banking crisis. Emphasizes in this respect the importance of a well-balanced and diversified funding structure in terms of sources of financing, maturity and other risk exposures;
Amendment 212 #
Motion for a resolution
Paragraph 7 e (new)
Paragraph 7 e (new)
7e. Considers that with the introduction of the bail-in concept of the RRD, owners and all creditors of banks will be the ones bailing out banks in the next crisis and that the power to separate activities vested in the resolution authority will be an important tool under the Bank Recovery and Resolution directive and it will represent a proportionate, tailored and risk-sensitive approach;
Amendment 213 #
Motion for a resolution
Paragraph 7 f (new)
Paragraph 7 f (new)
7f. Underlines the important role of banks in providing capital market services to governments, companies and investors to issue bonds and securities in the markets and stresses in this respect the vital role of market making;
Amendment 227 #
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 activitiesactivities serving the real economy from speculation;
Amendment 234 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8a. Urges the Commission to carry out a thorough impact analysis of such a legislative proposal including whether the main aim of a banking structural reform, increasing the solvability and the resolvability of European banks, has already been achieved by ongoing European legislation;
Amendment 250 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Urges the Commission to come forward with a proposal for suchnsider the impact of mandatory separation through the establishment of a thorough, transparent and credible ‘ring fence’ on the current European economic landscape and on the role of the European banks in financing the European economy, around bank activities that are vital for the real economy, such as those relating to credit functions, market making, payment systems and deposits; takes the view that in the event of a bank failure, the ring fence must ensure that the retail entity continues business unaffected by operational problems, financial losses, funding shortages or reputational damage resulting from the resolution or insolvency of the investment entity;
Amendment 276 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Urges the Commission to ensure that speculative trading activities 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 retail services;
Amendment 289 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Urges the Commission to ensure that where banks undertake speculative trading activities, the risks and costs associated with those activities are borne by their trading arm and not by their ring-fenced retail arm;
Amendment 306 #
Motion for a resolution
Paragraph 12 – point a
Paragraph 12 – point a
(a) separate legal entities, with separate sources of funding for the bank’s retail and investmententities engaged in economically important activities and its speculative trading entities;
Amendment 332 #
Motion for a resolution
Paragraph 12 – point d a (new)
Paragraph 12 – point d a (new)
(da) clear-cut rules serving to determine which activities are to be considered economically important. In particular, as regards market-making, criteria and indicators need to be laid down, depending on whether or not there is a market-maker standing ready on the market at all times or on the size of the orders concerned in relation to the market and proceeding from the necessary exact quantitative reference points (time threshold for continuous operation on the market, bid-ask spread, etc.), which should be adjusted according to the particular financial instruments involved. Revenue from market-making should come from fees, commission, and bid-ask spreads, rather than being generated by position price trends. The methods for calculating traders’ pay must not encourage risk-taking;
Amendment 335 #
Motion for a resolution
Paragraph 12 – point d b (new)
Paragraph 12 – point d b (new)
(db) increasing the uneven level playing field for market makers in Europe at the benefit of other jurisdictions;
Amendment 338 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12a. Urges the Commission to consider the alternative approach resulting from the application of the future Bank Recovery and Resolution Directive, whereby structural separation can result from the resolvability assessment of the firm;
Amendment 347 #
Motion for a resolution
Paragraph 13 a (new)
Paragraph 13 a (new)
13a. Market making which provides an essential service to the clients should be allowed to remain in the deposit taking entity as it enables banks to support European corporate clients to gain access to the markets;
Amendment 351 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Underlines the necessity of assessing the systemic risk presented by both by the retail and investmententities engaged in economically important activities and by speculating 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 364 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Urges the Commission to ensure that the retail entityentity engaged in economically important activities 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 fashion;
Amendment 368 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Urges 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 payingay out depositors in a timely fashion;
Amendment 380 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Urges the Commission to ensure that adequate differentiation exists in terms of capital, leverage and liquidity requirements between the investment and retailentity engaged in economically important activities and the speculating entitiesy, with an emphasis on higher capital requirements for the investment entity;
Amendment 413 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Calls on the Commission to include provisions establishing an obligation for all board members of the retail entity, both executive and non- executive, engaged in economically important activities and all levels of management and risk-takers to originate from, and only have responsibility for, the retail entity and not the investment entity;
Amendment 420 #
Motion for a resolution
Paragraph 22
Paragraph 22
Amendment 424 #
Motion for a resolution
Paragraph 23
Paragraph 23
Amendment 433 #
Motion for a resolution
Paragraph 24
Paragraph 24
Amendment 439 #
Motion for a resolution
Paragraph 26
Paragraph 26