BETA


2016/2959(RSP) Resolution on the finalisation of Basel III

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead ECON
Lead committee dossier:
Legal Basis:
RoP 136-p5

Events

2017/03/22
   EC - Commission response to text adopted in plenary
Documents
2016/11/23
   EP - Results of vote in Parliament
2016/11/23
   EP - Decision by Parliament
Details

The European Parliament adopted a resolution tabled by the Committee on Economic and Monetary Affairs on the finalisation of Basel III.

As a reminder, the G20 leaders agreed in the aftermath of the financial crisis to a comprehensive reform agenda strengthening the regulatory standards of international banks, including the strengthening of prudential requirements.

The Basel Committee on Banking Supervision (BCBS) is developing internationally agreed minimum standards for prudential requirements for large, internationally active banks. It monitors and reviews the implementation of these global standards and reports to the G20.

Parliament welcomed the post-crisis work of the BCBS in this field and underlined the importance of sound global standards and principles for the prudential regulation of banks.

It reaffirmed that banks need to be well capitalised in order to support the real economy, reduce systemic risk and avoid any repeat of the enormous bailouts witnessed during the crisis. It stressed the need for appropriate regulation of the shadow banking sector in order to ensure fair competition and financial stability.

Members noted the ongoing work of the BCBS to finalise the Basel III framework intended to increase simplicity, comparability and convergence of the risk-weighted capital framework in order to address excessive variability in risk-weighted assets and to apply the same rules to the same risks.

Parliament stressed that the current revision should respect two principles:

the principle stated by the Group of Governors and Heads of Supervision (GHOS) of not significantly increasing overall capital requirements, while at the same time strengthening the overall financial position of European banks; the principle to be respected by the revision is to promote the level playing field at the global level by mitigating – rather than exacerbating – the differences between jurisdictions and banking models, and by not unduly penalising the EU banking model.

Concerned that early analysis of recent BCBS drafts indicates that the reform package at its current stage might not be in compliance with the two abovementioned principles, Parliament called on the BCBS to revise its proposals accordingly and on the ECB and the Single Supervisory Mechanism ( SSM ) to ensure their respect in the finalisation and monitoring of the new standard.

The BCBS is called upon to assess carefully and comprehensively the qualitative and quantitative impact of the new reforms , taking into consideration their impact on different jurisdictions and different banking models before the adoption of the standard by the Committee. It should perform the necessary adjustments in case imbalances occur during this analysis.

Parliament also called on the BCBS to preserve the risk sensitivity of the prudential regulation, including by ensuring that the revision of the standardised approach and the scope for applying the IRBA overcome the risks of regulatory arbitrage and well reflect the specificities of different forms of financing, such as real estate lending, infrastructure financing and specialised lending, and by avoiding disproportionate effects for the real economy.

It recalled the key role of the European and national banking supervisors in ensuring supervisory convergence in the EU, taking into account the principle of proportionality and the appropriateness of the rules for different banking models.

The Commission is invited to take all these principles into account when determining the scope of implementation and when translating the BCBS proposals into EU law.

Documents
2016/11/23
   EP - End of procedure in Parliament
2016/11/21
   EP - Debate in Parliament
2016/11/16
   EP - Motion for a resolution
Documents
2016/11/04
   EP - Amendments tabled in committee
Documents
2016/10/27
   EP - Oral question/interpellation by Parliament
Documents

Documents

Activities

Votes

B8-1226/2016 - Am 4 #

2016/11/23 Outcome: -: 512, +: 160, 0: 30
IE CY FI LT EE LV EL SE LU SI MT BE DK HU HR PT AT NL CZ BG SK IT ES GB DE FR RO PL
Total
9
6
13
10
6
6
20
19
5
8
6
21
11
19
11
20
18
25
19
14
13
68
51
61
90
70
32
50
icon: GUE/NGL GUE/NGL
49

Ireland GUE/NGL

3

Cyprus GUE/NGL

2

Finland GUE/NGL

For (1)

1

Sweden GUE/NGL

For (1)

1

Denmark GUE/NGL

For (1)

1

Netherlands GUE/NGL

3

Czechia GUE/NGL

2

United Kingdom GUE/NGL

1
icon: Verts/ALE Verts/ALE
47

Finland Verts/ALE

For (1)

1

Lithuania Verts/ALE

For (1)

1

Estonia Verts/ALE

For (1)

1

Latvia Verts/ALE

1

Slovenia Verts/ALE

For (1)

1

Belgium Verts/ALE

2

Denmark Verts/ALE

For (1)

1

Hungary Verts/ALE

2

Croatia Verts/ALE

For (1)

1

Austria Verts/ALE

3

Netherlands Verts/ALE

2

United Kingdom Verts/ALE

4
icon: EFDD EFDD
36

Lithuania EFDD

For (1)

1

Sweden EFDD

2

Czechia EFDD

For (1)

1

Germany EFDD

1

France EFDD

Against (1)

1

Poland EFDD

1
icon: ENF ENF
37

Belgium ENF

For (1)

1

Netherlands ENF

3

United Kingdom ENF

For (1)

1

Germany ENF

Abstain (1)

1

Romania ENF

Abstain (1)

1

Poland ENF

2
icon: NI NI
14

Hungary NI

2

United Kingdom NI

3

Germany NI

2

France NI

Against (1)

Abstain (1)

2

Poland NI

Against (1)

1
icon: ECR ECR
69

Cyprus ECR

Against (1)

1

Finland ECR

Against (1)

2

Lithuania ECR

1

Greece ECR

For (1)

1

Croatia ECR

Against (1)

1

Netherlands ECR

For (1)

Against (1)

2

Czechia ECR

2

Bulgaria ECR

Against (1)

1

Italy ECR

2

Romania ECR

Against (1)

1
icon: ALDE ALDE
64

Ireland ALDE

Abstain (1)

1

Lithuania ALDE

Abstain (1)

3

Estonia ALDE

3

Sweden ALDE

2

Luxembourg ALDE

Against (1)

1

Slovenia ALDE

Against (1)

1

Denmark ALDE

2

Croatia ALDE

2

Portugal ALDE

2

Austria ALDE

Against (1)

1

United Kingdom ALDE

Against (1)

1

Romania ALDE

3
icon: S&D S&D
178

Ireland S&D

Against (1)

1

Cyprus S&D

2

Finland S&D

2

Lithuania S&D

2

Estonia S&D

Against (1)

1

Latvia S&D

Against (1)

1

Luxembourg S&D

Against (1)

1

Slovenia S&D

Against (1)

1

Malta S&D

3
3
4

Croatia S&D

2

Netherlands S&D

3

Czechia S&D

4

Bulgaria S&D

Abstain (1)

3
icon: PPE PPE
207

Cyprus PPE

Against (1)

1

Lithuania PPE

2

Estonia PPE

Against (1)

1

Luxembourg PPE

3

Denmark PPE

Against (1)

1

B8-1226/2016 - Am 1 #

2016/11/23 Outcome: -: 330, +: 190, 0: 174
IT EL FR IE CY PT FI SE BE LT EE LV MT LU ES GB DK AT SI DE SK HU HR CZ BG NL RO PL
Total
68
20
69
9
6
20
13
18
20
10
6
6
6
5
51
61
10
18
8
88
13
19
11
19
14
24
32
49
icon: GUE/NGL GUE/NGL
48

Ireland GUE/NGL

3

Cyprus GUE/NGL

2

Finland GUE/NGL

For (1)

1

Sweden GUE/NGL

For (1)

1

United Kingdom GUE/NGL

1

Denmark GUE/NGL

For (1)

1

Czechia GUE/NGL

2

Netherlands GUE/NGL

2
icon: Verts/ALE Verts/ALE
46

Finland Verts/ALE

For (1)

1

Belgium Verts/ALE

2

Lithuania Verts/ALE

For (1)

1

Estonia Verts/ALE

For (1)

1

Latvia Verts/ALE

1

United Kingdom Verts/ALE

4

Austria Verts/ALE

3

Slovenia Verts/ALE

For (1)

1

Hungary Verts/ALE

2

Croatia Verts/ALE

For (1)

1

Netherlands Verts/ALE

2
icon: EFDD EFDD
36

France EFDD

Against (1)

1

Sweden EFDD

2

Lithuania EFDD

For (1)

1

Germany EFDD

1

Czechia EFDD

For (1)

1

Poland EFDD

1
icon: ENF ENF
37

Belgium ENF

For (1)

1

United Kingdom ENF

For (1)

1

Germany ENF

For (1)

1

Netherlands ENF

3

Romania ENF

Against (1)

1

Poland ENF

2
icon: S&D S&D
177

Ireland S&D

For (1)

1

Cyprus S&D

2

Finland S&D

2

Lithuania S&D

2

Estonia S&D

Abstain (1)

1

Latvia S&D

Abstain (1)

1

Malta S&D

3

Luxembourg S&D

Abstain (1)

1
3

Slovenia S&D

Abstain (1)

1

Croatia S&D

2

Czechia S&D

4

Bulgaria S&D

For (1)

4

Netherlands S&D

3
icon: NI NI
14

France NI

For (1)

Against (1)

2

United Kingdom NI

3

Germany NI

For (1)

Against (1)

2

Hungary NI

2

Poland NI

Abstain (1)

1
icon: ECR ECR
68

Italy ECR

2

Greece ECR

For (1)

1

Cyprus ECR

Against (1)

1

Finland ECR

Against (1)

2

Lithuania ECR

Against (1)

1

Slovakia ECR

For (1)

3

Croatia ECR

Against (1)

1

Czechia ECR

2

Netherlands ECR

2

Romania ECR

Against (1)

1
icon: ALDE ALDE
64

Ireland ALDE

For (1)

1

Portugal ALDE

2

Sweden ALDE

2

Lithuania ALDE

Abstain (1)

3

Estonia ALDE

3

Luxembourg ALDE

Against (1)

1

United Kingdom ALDE

Against (1)

1

Denmark ALDE

2

Austria ALDE

Against (1)

1

Slovenia ALDE

Against (1)

1

Croatia ALDE

2

Romania ALDE

3
icon: PPE PPE
203

Cyprus PPE

Against (1)

1

Belgium PPE

3

Lithuania PPE

2

Estonia PPE

Against (1)

1

Luxembourg PPE

3

Denmark PPE

Against (1)

1

History

(these mark the time of scraping, not the official date of the change)

docs/1/docs/0/url
Old
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type
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    • date: 2016-11-23T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0439 type: Decision by Parliament, 1st reading/single reading title: T8-0439/2016 body: EP type: Decision by Parliament, 1st reading/single reading
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    • date: 2016-11-16T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=MOTION&reference=B8-2016-1226&language=EN title: B8-1226/2016 type: Motion for a resolution body: EP
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    • date: 2016-11-21T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20161121&type=CRE title: Debate in Parliament
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    • date: 2016-11-23T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0439 title: T8-0439/2016 summary: The European Parliament adopted a resolution tabled by the Committee on Economic and Monetary Affairs on the finalisation of Basel III. As a reminder, the G20 leaders agreed in the aftermath of the financial crisis to a comprehensive reform agenda strengthening the regulatory standards of international banks, including the strengthening of prudential requirements. The Basel Committee on Banking Supervision (BCBS) is developing internationally agreed minimum standards for prudential requirements for large, internationally active banks. It monitors and reviews the implementation of these global standards and reports to the G20. Parliament welcomed the post-crisis work of the BCBS in this field and underlined the importance of sound global standards and principles for the prudential regulation of banks. It reaffirmed that banks need to be well capitalised in order to support the real economy, reduce systemic risk and avoid any repeat of the enormous bailouts witnessed during the crisis. It stressed the need for appropriate regulation of the shadow banking sector in order to ensure fair competition and financial stability. Members noted the ongoing work of the BCBS to finalise the Basel III framework intended to increase simplicity, comparability and convergence of the risk-weighted capital framework in order to address excessive variability in risk-weighted assets and to apply the same rules to the same risks. Parliament stressed that the current revision should respect two principles: the principle stated by the Group of Governors and Heads of Supervision (GHOS) of not significantly increasing overall capital requirements, while at the same time strengthening the overall financial position of European banks; the principle to be respected by the revision is to promote the level playing field at the global level by mitigating – rather than exacerbating – the differences between jurisdictions and banking models, and by not unduly penalising the EU banking model. Concerned that early analysis of recent BCBS drafts indicates that the reform package at its current stage might not be in compliance with the two abovementioned principles, Parliament called on the BCBS to revise its proposals accordingly and on the ECB and the Single Supervisory Mechanism ( SSM ) to ensure their respect in the finalisation and monitoring of the new standard. The BCBS is called upon to assess carefully and comprehensively the qualitative and quantitative impact of the new reforms , taking into consideration their impact on different jurisdictions and different banking models before the adoption of the standard by the Committee. It should perform the necessary adjustments in case imbalances occur during this analysis. Parliament also called on the BCBS to preserve the risk sensitivity of the prudential regulation, including by ensuring that the revision of the standardised approach and the scope for applying the IRBA overcome the risks of regulatory arbitrage and well reflect the specificities of different forms of financing, such as real estate lending, infrastructure financing and specialised lending, and by avoiding disproportionate effects for the real economy. It recalled the key role of the European and national banking supervisors in ensuring supervisory convergence in the EU, taking into account the principle of proportionality and the appropriateness of the rules for different banking models. The Commission is invited to take all these principles into account when determining the scope of implementation and when translating the BCBS proposals into EU law.
    • date: 2016-11-23T00:00:00 type: End of procedure in Parliament body: EP
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