2021/2184(INI) Banking Union – annual report 2021
Lead committee dossier:
Progress: Procedure completed
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | ECON |
RZOŃCA Bogdan ( ECR)
|
FITZGERALD Frances ( EPP),
SILVA PEREIRA Pedro ( S&D),
KELLEHER Billy ( Renew),
NIINISTÖ Ville ( Verts/ALE),
ANNEMANS Gerolf ( ID)
|
Lead committee dossier:
Legal Basis:
RoP 54
Legal Basis:
RoP 54Subjects
Events
2022/10/20
EC - Commission response to text adopted in plenary
Documents
2022/07/05
EP - Results of vote in Parliament
Documents
2022/07/05
EP - Decision by Parliament
Details
The European Parliament adopted by 494 votes to 100, with 9 abstentions, a resolution on the Banking Union – annual report 2021.
Recalling that Banking Union is an essential element for the completion of economic and monetary union and the internal market , Parliament noted that the first two pillars of the Banking Union, the single supervisory mechanism and the single resolution mechanism, are now in place and fully operational, but that the European deposit insurance scheme has not yet been established.
General considerations
Members recalled that significant progress has been made since the 2008 financial crisis, namely that Europe’s banks are now in a stronger position to withstand financial shocks, and resolution mechanisms are in place to ensure that failing banks can be wound up without the use of taxpayers’ money.
The banking sector has shown a relatively high degree of resilience to the COVID-19 crisis and has played an important role in limiting the negative impact of the pandemic on the economy. Members support efforts to strengthen and complete the banking union and stressed that progress must be made in parallel in its various areas.
Deeply concerned about the Russian invasion of Ukraine and its economic consequences for the European economy, Parliament called on the European Central Bank, European supervisory authorities and competent national authorities to closely monitor the effects of the war on the EU banking sector.
Members believe that emergency measures to support banks' lending capacity to households and businesses should remain in place as long as necessary. They stressed the importance of ensuring a targeted, gradual, prudent and well-coordinated transition from pandemic support measures to recovery support tools, including reforms in Member States through national recovery and resilience plans. Members stressed the need to take into account the great instability created by the Russian invasion of Ukraine before deciding whether to phase out these measures.
The resolution underlined the key role of the EU banking sector and capital markets in financing the resilience, recovery and green and digital transformation of the European economy , including ensuring access to credit for SMEs. It recalled that, to fulfil these tasks, the EU banking sector must be strong, resilient, well-regulated and well-capitalised. Parliament supported the ongoing work on the implementation of the Basel III rules and welcomed the Commission's legislative banking package of 27 October 2021 in this respect. In the implementation process, the Union should ensure full harmonisation with the Basel standards, while also taking into account the proportionality principle.
Parliament welcomed the fact that the banking sector is adapting to the challenges and opportunities of digitalisation , which will enable banks to better serve their customers remotely and to offer them new products. As the banking sector is particularly vulnerable to the threat of cyber-attacks, Members stressed the need for further investment and research to develop innovative solutions to strengthen the banking sector's cyber security.
Parliament recalled that cooperation between the Single Supervisory Mechanism and the UK Financial Conduct Authority is based on the Memorandum of Understanding between the ECB and the UK authorities, which entered into force on 1 January 2021. The Commission recently announced the extension of its temporary authorisation for EU banks and fund managers to use UK clearing houses. Members called on the Commission to take measures to facilitate more clearing in the EU in the medium term .
Supervision
Parliament stressed the need to consider various scenarios and prepare for different eventualities in the light of the risks posed to the banking sector by the Russian aggression against Ukraine.
Members consider that credit risk management, monitoring and the reduction of non-performing loans should remain one of the key priorities. Although stable for the time being, the situation needs to be closely monitored as emergency measures are phased out. The issue of the regulatory treatment of sovereign exposures also requires further consideration in international fora.
The resolution stressed the importance of the banking sector in financing the transition to a carbon-neutral economy . Concerned that climate-related risks on banks' balance sheets could eventually put banks in financial difficulty, Members believe that these risks should be reduced to prevent bank failures. They stressed the need for further improvements in banks' disclosure of climate and environmental risks to facilitate risk assessment by banks and supervisors.
Highlighting the disparity in interest rates offered to households and SMEs across Member States, Parliament called on the Commission and banking supervisors to consider measures to ease the burden on mortgage holders and SMEs in Member States with higher lending rates in order to ensure that all citizens and businesses can access much-needed capital at fair and competitive rates.
The resolution underlined the need for effective anti-money laundering supervision and stressed the importance of strengthening consumer and investor protection against abuses, harmful practices and harmful products.
Resolution
Parliament welcomed the fact that the banks within the Single Resolution Board’s remit have overall made good progress towards resolvability and strengthening their loss-absorbing capacity . It welcomed the introduction of a backstop to the Single Resolution Fund in 2022.
Members supported the review and clarification of the public interest assessment criteria to ensure a more consistent and predictable application of the resolution mechanism. It is important that the Single Resolution Board adopts a proportionate approach to allow banks to define their minimum capital requirements and eligible liabilities. Members support a review of the role of group recovery and resolution plans in the crisis management framework. They also support a review of state aid rules for the banking sector.
Deposit insurance
Parliament stressed that a European deposit insurance scheme would improve the protection of depositors in the EU and their confidence in the banking sector and would help strengthen the banking union by reducing the link between sovereign issuers and banks.
Members welcomed the inclusion of the proposal for a regulation establishing a European deposit insurance scheme in the EU institutions joint declaration setting out the main legislative priorities for 2022. They recalled that Parliament is co-legislator for legislation on the European deposit insurance scheme and that Parliament's position on this matter should be taken into account.
Documents
2022/06/21
EP - Committee report tabled for plenary, single reading
Documents
2022/06/21
EP - Committee report tabled for plenary
Documents
2022/06/14
EP - Vote in committee
2022/02/17
EP - Amendments tabled in committee
Documents
2022/01/31
EP - RZOŃCA Bogdan (ECR) appointed as rapporteur in ECON
2022/01/12
EP - Committee draft report
Documents
2021/10/07
EP - Committee referral announced in Parliament
Documents
- Commission response to text adopted in plenary: SP(2022)505
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament: T9-0280/2022
- Committee report tabled for plenary, single reading: A9-0186/2022
- Committee report tabled for plenary: A9-0186/2022
- Amendments tabled in committee: PE719.659
- Committee draft report: PE696.539
- Committee draft report: PE696.539
- Amendments tabled in committee: PE719.659
- Committee report tabled for plenary, single reading: A9-0186/2022
- Commission response to text adopted in plenary: SP(2022)505
Votes
Union bancaire - rapport annuel 2021 - Banking Union – annual report 2021 - Bankenunion – Jahresbericht 2021 - A9-0186/2022 - Bogdan Rzońca - Proposition de résolution #
2022/07/05 Outcome: +: 494, -: 100, 0: 19
PPE
NI
The Left| Amendments | Dossier |
| 398 |
2021/2184(INI)
2022/02/17
ECON
398 amendments...
Amendment 1 #
Motion for a resolution Citation 9 Amendment 10 #
Motion for a resolution 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 100 #
Motion for a resolution Recital I b (new) I b. whereas the backstop to the Single Resolution Fund will be in place ahead of schedule;
Amendment 101 #
Motion for a resolution Paragraph -1 (new) -1. Recalls that Banking Union (BU) is an essential complement to the Economic and Monetary Union (EMU) and the internal market, which aligns responsibility for supervision, resolution and funding at EU level and forces banks across the euro area to abide by the same rule book;
Amendment 102 #
Motion for a resolution Paragraph 1 1. Recalls that
Amendment 103 #
Motion for a resolution Paragraph 1 1. Recalls that
Amendment 104 #
Motion for a resolution Paragraph 1 1. Recalls that one goal of the BU is the security of the banking system and the prevention of bank bailouts by taxpayers; supports efforts to
Amendment 105 #
Motion for a resolution Paragraph 1 1. Recalls that
Amendment 106 #
Motion for a resolution Paragraph 1 1. Recalls that
Amendment 107 #
Motion for a resolution Paragraph 1 1. Recalls that
Amendment 108 #
Motion for a resolution Paragraph 1 1. Recalls that one goal of the BU is the security of the banking system and the prevention of bank bailouts by taxpayers; supports efforts to strengthen the BU; stresses that a solid BU will result in increased confidence in the banking sector and increase its resilience and competitiveness;
Amendment 109 #
Motion for a resolution Paragraph 1 1. Recalls that one goal of the BU is the security of the banking system
Amendment 11 #
Motion for a resolution Citation 23 a (new) — having regard to the ECB recommendation of 15 December 2020 on dividend distributions during the COVID- 19 pandemic;
Amendment 110 #
Motion for a resolution Paragraph 1 1. Recalls that one goal of the B
Amendment 111 #
Motion for a resolution Paragraph 1 a (new) 1 a. Underlines the vital contribution to addressing the COVID-19 crisis of temporary measures such as public guarantee schemes, moratoria on loan repayments for borrowers in financial difficulty, the revised State aid framework, the central banks’ liquidity programmes and the ECB’s targeted longer-term refinancing operations (TLTRO), asset purchase programme (APP) and pandemic emergency purchase programme (PEPP); also welcomes the targeted changes to the Capital Requirements Regulation (CRR) introduced by the ‘CRR quick fix’ in order to support banks’ lending capacity to households and businesses;
Amendment 112 #
Motion for a resolution Paragraph 1 a (new) 1 a. Is concerned that climate risks on bank’s balance sheets may over time put banks in financial difficulty, considers that these risks should be brought down to prevent bank bailouts by taxpayers;
Amendment 113 #
Motion for a resolution Paragraph 1 b (new) 1 b. Points out the importance to secure a well-coordinated, prudent, gradual and targeted shift from pandemic relief to recovery support tools, including reforms in the Member States through the national recovery and resilience reform plans; notes that an early or uncoordinated withdrawal of the temporary measures could see the re- emergence of the pre-crisis deficiencies and vulnerabilities of the banking sector, potentially compromising growth and the outcome of the recovery;
Amendment 114 #
Motion for a resolution Paragraph 2 2. Considers that the BU should be built up in a
Amendment 115 #
Motion for a resolution Paragraph 2 2. Considers that the B
Amendment 116 #
Motion for a resolution Paragraph 2 2. Considers that the BU should be built in a friendly and attractive way, including for Member States outside the euro area; points out that Member States not belonging to the BU are also bound by the rules of the so-called Single Rulebook, which arose as a result of the process of harmonisation and integration of the European banking system, and that their banking systems are de facto strongly linked to the BU;
Amendment 117 #
Motion for a resolution Paragraph 2 2. Considers that
Amendment 118 #
Motion for a resolution Paragraph 2 2.
Amendment 119 #
Motion for a resolution Paragraph 2 2. Considers that the BU should be built in a
Amendment 12 #
Motion for a resolution Citation 23 b (new) — having regard to the Commission communication of 16 December 2020 on tackling non-performing loans in the aftermath of the COVID-19 pandemic (COM(2020)0822);
Amendment 120 #
Motion for a resolution Paragraph 2 a (new) 2 a. Recalls that the Commission assessed in the 2020 Country Specific Recommendations for Croatia that despite several Action Plans, issues of corruption and conflicts of interest remain widespread in Croatia, and that further efforts to strengthen the prevention and sanction of corruption are needed to ensure the transparent and efficient use of public funds; recalls that Article 140(1) TFEU requires the Commission and European Central Bank’s convergence reports to take account of 'other factors' relevant to economic integration and convergence, such as corruption; recalls that the Commission criticised Bulgaria in its 2020 Rule of Law report for its disregard for the rule of law and the independence of the judiciary; concludes that Bulgaria and Croatia are not ready for accession to the Banking Union;
Amendment 121 #
Motion for a resolution Paragraph 2 a (new) 2 a. Stresses that the completion of the Capital Markets Union alongside the development of the Banking Union will help to deliver better conditions for the financing of the European economy, for both households and companies that are still largely reliant on bank credit to foster investments and job creation, while also contributing to the resilience of the European economy;
Amendment 122 #
Motion for a resolution Paragraph 3 3. Stresses that the relatively good performance of banks during the COVID- 19 crisis is related to the policies implemented by the Member States during the pandemic, as well as to temporary measures under
Amendment 123 #
Motion for a resolution Paragraph 3 3. Stresses that the relatively good performance of banks during the COVID- 19 crisis is related to the policies implemented by the Member States during the pandemic, as well as to temporary measures under Regulation (EU) 575/2013 (Capital Requirements Regulation); cautions against the structural changes in the banking sector that were triggered by the COVID-19 crisis, which include the strengthening of non-bank payment service providers and the significant increase in the use of digital platforms by financial institutions;
Amendment 124 #
Motion for a resolution Paragraph 3 3.
Amendment 125 #
Motion for a resolution Paragraph 3 3.
Amendment 126 #
Motion for a resolution Paragraph 3 3. Stresses that the
Amendment 127 #
Motion for a resolution Paragraph 3 3. Stresses that the relatively good performance of banks during the COVID- 19 crisis is related to the policies implemented by the Member States during the pandemic, as well as to temporary measures under Regulation (EU) 575/2013 (Capital Requirements Regulation), proving that equity and not debt is the solution to solve crises and build up resilience against economic and financial shocks;
Amendment 128 #
Motion for a resolution Paragraph 3 3. Stresses th
Amendment 129 #
Motion for a resolution Paragraph 3 3.
Amendment 13 #
Motion for a resolution Citation 23 c (new) — having regard to its resolution of 14 March 2019 on gender balance in EU economic and monetary affairs nominations;
Amendment 130 #
Motion for a resolution Paragraph 3 a (new) 3 a. Stresses the exceptional nature of the pandemic and the temporary nature of the aid measures; notes that their gradual phasing out and a return to pre-COVID- 19 capital requirements should be anticipated; stresses that while temporary measures should be tailored to the situation, conditions and pathways out of them should be clearly defined; takes note, in this context, of the decision of the Governing Council of the ECB of 16 December 2021 to cease net asset purchases under the Pandemic Emergency Purchase Programme (PEPP) at the end of March 2022; reiterates that asset purchase programmes (APPs and PEPPs) should not lead to distortions in the economy and should be guided by the principle of market neutrality; notes that an effectively implemented economic recovery programme — including reforms in the Member States — will be crucial for the security and stability of the banking sector in the EU;
Amendment 131 #
Motion for a resolution Paragraph 3 a (new) 3 a. Expresses deep concern about the findings of the ECB´s Targeted Review of Internal Models, published in April 2021, which shows that the biggest euro area banks have repeatedly been too optimistic in their risk-modelling, confirming longstanding suspicions among regulators and analysts that larger banks have often artificially inflated the strength of their balance sheets by underestimating the riskiness of their assets, giving them a short-term advantage over more cautious competitors; is alarmed that the Review resulted in more than 5.800 deficiencies and 253 supervisory corrections of internal models by the ECB, which pushed up the banks’ risk-weighted assets by EUR 275 billion, a 12 per cent increase in the models examined, which reduced their average common equity tier one ratios by 0.71 percentage points;
Amendment 132 #
Motion for a resolution 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 133 #
Motion for a resolution 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 134 #
Motion for a resolution 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 135 #
Motion for a resolution Paragraph 4 4. Recalls the key role of the EU banking sector in financing the recovery of the European economy and considers that the recovery will also depend on banks having sufficient capital to provide credit, particularly as public support measures in Member States are gradually removed;
Amendment 136 #
Motion for a resolution Paragraph 4 4.
Amendment 137 #
Motion for a resolution Paragraph 4 4. Recalls the key role
Amendment 138 #
Motion for a resolution Paragraph 4 4.
Amendment 139 #
Motion for a resolution Paragraph 4 4. Recalls the key role of the EU banking sector in financing the recovery of the European economy, including sufficient funding for SME's;
Amendment 14 #
Motion for a resolution Citation 23 d (new) — having regard to its resolution of 25 March 2021 on strengthening the international role of the euro;
Amendment 140 #
Motion for a resolution Paragraph 4 4. Recalls th
Amendment 141 #
Motion for a resolution Paragraph 4 4. Recalls the key role of the EU banking sector and the capital markets union in financing the recovery of the European economy;
Amendment 142 #
Motion for a resolution 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 143 #
Motion for a resolution Paragraph 4 a (new) 4 a. Points out that a strong and well- constructed Capital Markets Union would be an important support for the banking sector during the recovery of the European economy; stresses, in this context, that in order to complete the Capital Markets Union, it is necessary to ensure the proportionality of the legislation adopted, the protection of retail clients and the preservation of the appropriate role of national supervisory authorities as conditions for an attractive, secure and stable capital market;
Amendment 144 #
Motion for a resolution Paragraph 4 a (new) Amendment 145 #
Motion for a resolution Paragraph 4 a (new) 4 a. Takes note of the Euro Summit statement of 16 December 2021 which requested the Eurogroup to 'finalise on a consensual basis a stepwise and time- bound work plan on all outstanding elements charting the way towards its completion';
Amendment 146 #
Motion for a resolution Paragraph 4 b (new) 4 b. Notes that a fully-fledged Banking Union, together with a fully integrated and strong CMU, would contribute to the resilience of the European economy, and support the functioning of the EMU; welcomes therefore, the legislative proposals presented on 25 November 2021 to advance on CMU; highlights the importance of a level playing field that avoids disadvantages for SMEs in terms of access to finance, and the need to carefully monitor the issuance of securitised products; reiterates that bank- like systemic risks can occur where credit intermediation takes place in an environment where regulatory standards and supervisory oversight are looser than for regular banks; calls on the Commission and ESAs to assess the need to better regulate the shadow-banking sector and to put forward, where appropriate, legislative proposals, and to continuously monitor the resilience of capital markets;
Amendment 147 #
Motion for a resolution Paragraph 4 c (new) 4 c. Highlights that the Recovery and Resilience Facility may provide impetus for the completion of the Banking Union, considering the crucial role of the banking sector in providing access to credit and channelling the available funding into the real economy, in particular into sustainable and socially responsible investments;
Amendment 148 #
Motion for a resolution Paragraph 4 d (new) 4 d. Underlines the important role of public finance and investments, alongside private investments, in supporting the climate transition, as established in the Sustainable Europe Investment Plan;
Amendment 149 #
Motion for a resolution 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
Amendment 15 #
Motion for a resolution Citation 23 e (new) — having regard to the Monitoring report on risk reduction indicators published by the Single Resolution Board on November 2021;
Amendment 150 #
Motion for a resolution Paragraph 5 5. Notes that the EBA, the ECB and the SRB still see many
Amendment 151 #
Motion for a resolution 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; therefore highlights the importance of prudent risk management and appropriate provisioning; invites the Commission as well as national and European supervisory authorities to prepare for such a deterioration of asset quality;
Amendment 152 #
Motion for a resolution Paragraph 5 5. Notes that the EBA, the ECB and the SRB still see
Amendment 153 #
Motion for a resolution Paragraph 5 5. Notes that the EBA, the ECB and the SRB still see many problems in the banking system, such as
Amendment 154 #
Motion for a resolution 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; points out that the national picture in this area differs significantly from one Member State to the next;
Amendment 155 #
Motion for a resolution 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 156 #
Motion for a resolution 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);
Amendment 157 #
Motion for a resolution Paragraph 5 5. Notes that the EBA, the ECB and the SRB still see many
Amendment 158 #
Motion for a resolution Paragraph 5 a (new) 5 a. Reminds that risk reduction in the banking sector would contribute to a more stable, strong and economic growth oriented Banking Union; in this regard asks co-legislators to work on an agreement on the Commission proposal regarding accelerated extrajudicial collateral enforcement (AECE), which intends to provide banks, under certain conditions, with a mechanism to accelerate the value recovery from secured loans via an extrajudicial enforcement of procedures;
Amendment 159 #
Motion for a resolution Paragraph 5 a (new) 5 a. Believes that banks must be put in the best regulatory position to be able to continue to support the economic recovery and particularly European SMEs in the sectors most affected by the restrictive measures triggered by the health emergency; to this end, believes that EBA must adopt temporary flexibility in its rules for the classification of defaults to allow targeted and effective moratoria for viable businesses;
Amendment 16 #
Motion for a resolution Citation 23 f (new) — having regard to the ECB's feedback letter on the input provided by the European Parliament as part of its 'resolution on Banking Union - Annual Report 2020';
Amendment 160 #
Motion for a resolution Paragraph 5 a (new) 5 a. Deplores the ECB´s role in massively inflating the money supply and expanding its balance sheet up to over 80% of euro area GDP; recalls that banks in the northern euro area hold a disproportionately high amount of deposits with the ECB, and pay disproportionately high penalty interest to the ECB; by contrast, banks in the southern euro area benefit disproportionately from the negative interest rates on TLTRO loans;
Amendment 161 #
Motion for a resolution 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) 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 163 #
Motion for a resolution Paragraph 5 b (new) 5 b. Recalls that the Targeted Long Term Refinancing Operations (TLTROs) further zombify the European economy and deteriorate the real income prospects, especially of young Europeans;
Amendment 164 #
Motion for a resolution Paragraph 5 c (new) 5 c. Is concerned about the high levels of legacy non-performing exposures many institutions had, even before the pandemic;
Amendment 165 #
Motion for a resolution Paragraph 6 6. Supports ongoing work on the implementation of the Basel III rules and stresses the importance of the specificities of the European banking sector being duly taken into account in order to ensure a global level playing field; reiterates that the reform must not hamper EU banks’ ability to finance the recovery, and the digital and environmental transition in Europe; underlines that in order to uphold its economic sovereignty and strategic autonomy, the EU needs strong and competitive European banks to offer wholesale banking services to corporates of all sizes;
Amendment 166 #
Motion for a resolution 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 167 #
Motion for a resolution Paragraph 6 6. Supports the ongoing work on the implementation of the Basel III rules; recalls that the transposition of these rules into EU law should be Basel compliant, although taking into account the principle of proportionality, and respect, where appropriate, the specificities and diversity of the EU banking sector; stresses that deviations from the internationally agreed rules should be temporary and EU regulation should converge to full compliance with Basel III standards over time;
Amendment 168 #
Motion for a resolution Paragraph 6 6. Supports the ongoing work on the implementation of the Basel III
Amendment 169 #
Motion for a resolution 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 17 #
Motion for a resolution Citation 23 g (new) — having regard to the Commission proposal of 24 November 2015 for a regulation of the European Parliament and of the Council amending Regulation (EU) No 806/2014 in order to establish a European Deposit Insurance Scheme (COM(2015)0586);
Amendment 170 #
Motion for a resolution Paragraph 6 6. Supports ongoing work on the legislation finalising the implementation of the Basel III rules; stresses, in this context, that the solutions laid down in Basel III rules, including as regards output floors, should be implemented as strictly as possible;
Amendment 171 #
Motion for a resolution Paragraph 6 6. Supports ongoing work on the implementation of the Basel III rules; recalls the objective that the finalisation package must not significantly increase overall capital requirements; therefore commits itself to an implementation approach that duly takes into account European specificities;
Amendment 172 #
Motion for a resolution Paragraph 6 6. Supports ongoing work on the implementation of the Basel III rules, that follows the proportionality principles given the specifications and diversity of the EU banking sector;
Amendment 173 #
Motion for a resolution Paragraph 6 6. Supports ongoing work on the implementation of the Basel III rules; welcomes the Commission’s proposal to opt for a single-stack approach in the application of the output floor;
Amendment 174 #
Motion for a resolution Paragraph 6 6. Supports
Amendment 175 #
Motion for a resolution Paragraph 6 a (new) 6 a. Recalls the recent report by the International Energy Agency concluding that, to reach net-zero emissions by 2050, no investments in new oil, gas and coal projects should be approved; reminds that the EU's obligation to achieve net zero emissions by 2050 therefore implies a high risk to the financial sector of fossil fuel exposures becoming stranded; calls for the gradual introduction of this risk in EU prudential rules including the Credit Requirements Regulation and the Solvency framework; highlights the possibility of applying different risk- weights (CRR) or capital charges (Solvency) to assets depending on their risk of becoming stranded, taking into account the type and lifetime of the asset;
Amendment 176 #
Motion for a resolution Paragraph 6 a (new) 6 a. Notes that the Basel III implementation needs to provide the banking sector which sufficient margin of manoeuvring their core activities;
Amendment 177 #
Motion for a resolution Paragraph 7 7.
Amendment 178 #
Motion for a resolution Paragraph 7 7.
Amendment 179 #
Motion for a resolution Paragraph 7 7. Notes that the banking sector is adapting to the challenges of digitalisation; calls on the financial supervisors to adjust their priorities in order to face the related changes; stresses the need for further investments, training, research and adequate regulations; appreciates the work on the digital finance package; considers that the priority should be customer safety, inclusiveness and technological neutrality; observes with interest the work on the digital euro, which should be a universal and inclusive means of payment that can be used without the need for the latest technology;
Amendment 18 #
Motion for a resolution Citation 23 h (new) — having regard to the European Supervisory Authorities (ESAs)’ second joint risk assessment report of September 2021;
Amendment 180 #
Motion for a resolution Paragraph 7 7. Notes that the banking sector is adapting to the challenges and opportunities of digitalisation; stresses the need for further investments,
Amendment 181 #
Motion for a resolution 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 priority should be customer safety and the protection of their funds and data, greater EU involvement in the development of a legal framework that facilitates the banking sector’s fight against cybercrime and the exchange of information in this regard, inclusiveness and technological neutrality; observes with interest the work on the digital euro;
Amendment 182 #
7. Notes that the banking sector is adapting to the challenges of digitalisation; stresses the need for further investments, research and
Amendment 183 #
Motion for a resolution 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 priorit
Amendment 184 #
Motion for a resolution Paragraph 7 a (new) Amendment 185 #
Motion for a resolution Paragraph 7 a (new) 7 a. Stresses that the banking sector is particularly vulnerable to the threat of cyber-attacks due to the vast amount of customer data and financial assets held by banks; welcomes, in this regard, the progress made on the proposals for a regulation and a directive on digital operational resilience for the financial sector (DORA) which will ensure that banks have in place robust ICT risk management frameworks, adequate ICT- related incident management processes, regular digital operational resilience testing and rules for the management of third party ICT risk;
Amendment 186 #
Motion for a resolution Paragraph 7 a (new) 7 a. Points out that, depending on the precise design features of a digital euro, the impact on the banking sector might be significant affecting areas such as payments, banks' ability to perform maturity transformation and overall lending capacity; invites the ECB to consider those aspects as well as potential financial stability implications in the future work on the digital euro;
Amendment 187 #
Motion for a resolution Paragraph 7 a (new) 7 a. Observes with interest the work on the digital euro; welcomes the objective of the digital euro functioning alongside cash as a means of secure and competitive digital payment; supports the ECB’s efforts in ensuring a high level of privacy, data protection, confidentiality of payment data, cyber resilience and security;
Amendment 188 #
Motion for a resolution Paragraph 7 a (new) 7 a. Calls on the ESAs and ENISA to step up their efforts in monitoring and mitigating the risks concerning third country ICT third parties, if these third parties have or are suspected of having ties to foreign governments or foreign militaries;
Amendment 189 #
Motion for a resolution Paragraph 8 8. Recalls that the basis for the cooperation between the SSM and the UK Financial Conduct Authority is the Memorandum of Understanding between the ECB and the UK authorities, which entered into force on 1 January 2021; notes that the European Commission has recently announced the extension of its temporary permit allowing European banks and fund managers to use UK clearing houses, thereby avoiding any short-term cliff-edge effects;
Amendment 19 #
Motion for a resolution Citation 38 a (new) — having regard to the EBA report 'Risk Assessment of the European Banking System. December 2021' 1a; _________________ 1a https://www.eba.europa.eu/sites/default/do cuments/files/document_library/Risk%20 Analysis%20and%20Data/EU%20Wide% 20Transparency%20Exercise/2021/10251 02/Risk_Assessment_Report_December_2 021.pdf
Amendment 190 #
Motion for a resolution Paragraph 8 a (new) 8 a. Regrets the failure to ensure full gender balance in EU financial institutions and bodies, and in particular the fact that women continue to be underrepresented in executive positions in the field of banking and financial services; stresses that gender balance on boards and in the workforce brings both societal and economic returns; considers that the selection of applicants to EU financial institutions and bodies should be based on criteria of merit, diversity and ability, so that the institution or body involved operates as effectively as possible; calls on governments and all institutions and bodies to prioritise the achievement of full gender balance as soon as possible, including by providing gender-balanced shortlists of candidates for all future appointments in EU bodies;
Amendment 191 #
Motion for a resolution Paragraph 8 a (new) 8 a. Notes the accelerated pace of digitalisation in the banking sector; looks forward to the further development of DORA and its effect on digital operational resilience for the financial sector; calls on the ESAs and ENISA to step up their efforts in monitoring and mitigating the risks concerning third country ICT third parties, if these third-parties have or are suspected of having ties to foreign governments or foreign militaries;
Amendment 192 #
Motion for a resolution 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 193 #
Motion for a resolution Paragraph 8 a (new) 8 a. Considers it necessary to implement bank structural reform proposals ('ring-fencing') as soon as possible, with a clear separation between retail banking services and investment activities to reduce interdependencies and excessive risk-taking in the banking sector; deplores the lack of interest shown by the European institutions in proceeding with such reforms;
Amendment 194 #
Motion for a resolution Paragraph 8 a (new) 8 a. Considers that the Banking Union or reforms of the EMU governance structure should respect the will of Member States that have not introduced the euro currency to retain their respective currencies and retain supervisory powers as well as decision making power over national bank resolution schemes;
Amendment 195 #
Motion for a resolution Paragraph 8 b (new) 8 b. Recalls its resolution of 14 March 2019 aiming to secure gender balance in the forthcoming list of candidates for EU economic and monetary affairs nominations and reiterates its commitment not to take into account lists of candidates where the gender balance principle has not been respected;
Amendment 196 #
Motion for a resolution Paragraph 8 b (new) 8 b. Calls on the Commission to prioritise the principle of proportionality in EU banking regulation;
Amendment 197 #
Motion for a resolution Subheading 2 a (new) Stresses that Member States that have retained their national currencies shall also retain supervisory powers;
Amendment 198 #
Motion for a resolution Subheading 2 b (new) Notes that some national supervisory agencies from non-euro area countries are characterised by higher standards of transparency and capital requirements than the institutions of the Banking Union and the ECB;
Amendment 199 #
Motion for a resolution Subheading 2 c (new) Emphasizes that the Banking Union is a step towards an eventual socialisation of national bank resolution and deposit guarantee schemes;
Amendment 2 #
Motion for a resolution Citation 9 a (new) — having regard to The Five Presidents’ Report of 22 June 2015 entitled ‘Completing Europe’s Economic and Monetary Union’;
Amendment 20 #
Motion for a resolution Citation 38 a (new) — having regard to Article 140(1) of the Treaty on the Functioning of the European Union;
Amendment 200 #
Motion for a resolution Paragraph 9 Amendment 201 #
Motion for a resolution Paragraph 9 Amendment 202 #
Motion for a resolution Paragraph 9 9. Notes that there is a prospect of gradually phasing out emergency
Amendment 203 #
Motion for a resolution Paragraph 9 9. Notes that there is a prospect of gradually phasing out emergency measures and returning to pre-COVID-19 capital requirements; believes that support measures should be in place for as long as needed to support the recovery from the COVID-19 pandemic and to drive the transformative changes making the economies greener, more digital and inclusive;
Amendment 204 #
Motion for a resolution Paragraph 9 9.
Amendment 205 #
Motion for a resolution Paragraph 9 9. Notes that
Amendment 206 #
Motion for a resolution Paragraph 9 a (new) 9 a. Takes the view that supervision continues to focus solely on credit risk, underestimating the importance of financial risk;
Amendment 207 #
Motion for a resolution Paragraph 10 Amendment 208 #
Motion for a resolution Paragraph 10 10. Considers the reduction of NPLs should remain a priority; warns that, although the situation is stable for the time being, their number is likely to increase rapidly after the withdrawal of emergency support measures, especially for SMEs; draws attention to the importance of prudential compliance, early identification and proactive management of NPLs; stresses the need for cooperation with vulnerable debtors, while acknowledging the solutions put in place by the banking sector in this regard during the pandemic (such as a moratorium on loan repayments); welcomes the adoption of the Directive on credit servicers and credit purchasers, which will help banks to reduce the number of NPLs on their balance sheets;
Amendment 209 #
Motion for a resolution Paragraph 10 10. Considers the reduction of NPLs should remain a priority; warns that the
Amendment 21 #
Motion for a resolution Citation 38 b (new) — having regard to Articles 114 and 127(6) of the Treaty on the Functioning of the European Union;
Amendment 210 #
Motion for a resolution Paragraph 10 10. Considers the reduction of NPLs and of complex and illiquid financial instruments classified as level 2 and level 3 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
Amendment 211 #
Motion for a resolution Paragraph 10 10. Considers th
Amendment 212 #
Motion for a resolution Paragraph 10 10. Considers the
Amendment 213 #
Motion for a resolution Paragraph 10 10. Considers the reduction of NPLs should remain a high 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 as well as adequate provisioning;
Amendment 214 #
Motion for a resolution Paragraph 10 a (new) 10 a. Welcomes the ESAs’ second joint risk assessment report of September 2021 advising banks to prepare for a possible deterioration of asset quality in the financial sector, notwithstanding the improved economic outlook and to focus on proper assessment of the consequences of the pandemic on banks’ lending books, adequately manage the transition towards the recovery phase;
Amendment 215 #
Motion for a resolution Paragraph 10 a (new) 10 a. Worries about an increase in NPLs due to stranded investments in fossil fuels; calls for the early identification and proactive management of such at-risk assets; encourages the Single Supervisory Mechanism to continue and strengthen work in this direction;
Amendment 216 #
Motion for a resolution Paragraph 11 Amendment 217 #
Motion for a resolution Paragraph 11 11.
Amendment 218 #
Motion for a resolution Paragraph 11 11. Is concerned about the rising level of sovereign debt on the balance sheets of banks in the
Amendment 219 #
Motion for a resolution Paragraph 11 11. Is concerned about the rising level of sovereign debt on the balance sheets of banks in the BU; notes that government bonds are not risk-free assets and that risks are differentiated; emphasises that the issue of regulatory treatment of sovereign exposures (RTSE), given the complexity of the issue, requires an in-depth examination of the consequences of different approaches, both from the perspective of the banking sector and in terms of the assessment of sovereign bond market liquidity; believes that any potential solution should be balanced and treat all EU Member States fairly (in particular, without penalising non-euro area government issuers);
Amendment 22 #
Motion for a resolution Citation 38 c (new) — having regard to the ECB´s Targeted Review of Internal Models, published in April 2021;
Amendment 220 #
Motion for a resolution Paragraph 11 11.
Amendment 221 #
Motion for a resolution Paragraph 11 11. Is concerned about the rising level of sovereign debt on the balance sheets of banks in the BU; 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; highlights that this is the key to break up the 'doom loop' between banks and sovereigns;
Amendment 222 #
Motion for a resolution Paragraph 11 11. Is concerned about the rising level of s
Amendment 223 #
Motion for a resolution Paragraph 11 11. Is concerned about the rising level of sovereign debt on the balance sheets of banks in the BU; notes that government bonds are not risk-free assets and that risks are differentiated; emphasises that
Amendment 224 #
Motion for a resolution Paragraph 11 11. Is concerned about the rising level of sovereign debt on the balance sheets of banks in the BU; notes that government bonds are not risk-free assets and that risks are differentiated; emphasises that the issue of regulatory treatment of sovereign exposures
Amendment 225 #
11. Is concerned about the rising level of sovereign debt on the balance sheets of banks in the BU; notes that government bonds are not risk-free assets, but are incorrectly treated as such, and that risks are differentiated; emphasises that the issue of regulatory treatment of sovereign exposures
Amendment 226 #
Motion for a resolution Paragraph 11 a (new) 11 a. Recalls that total sovereign exposure of banks in the euro area currently amounts to EUR 2.9 trillion, i.e. a substantial 9% of total assets, and that claims on domestic governments account for the bulk of that with EUR 2.1 trillion;
Amendment 227 #
Motion for a resolution Paragraph 11 a (new) Amendment 228 #
Motion for a resolution Paragraph 11 a (new) 11 a. Points out that the rising public debt levels following the pandemic make an appropriate treatment of sovereign exposures more pressing;
Amendment 229 #
Motion for a resolution 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 23 #
Motion for a resolution Recital A A. whereas the
Amendment 230 #
Motion for a resolution Paragraph 11 b (new) 11 b. Is concerned that as Member States sell increasing amounts of sovereign bonds, their share in banks’ balance sheets grows, potentially aggravating the doom loop; points out that this trend is exacerbated by the zero risk weight assigned to sovereign exposures that incentives excessively large positions in sovereign exposures; stresses the need to modify incentives for banks so that they scale back their investment in public bonds, by introducing non-zero risk weights for sovereign exposures;
Amendment 231 #
Motion for a resolution Paragraph 11 b (new) 11 b. Calls on the European Commission to address the state-bank nexus by making a legislative proposal to introduce non-zero risk weights for sovereign exposures;
Amendment 232 #
Motion for a resolution Paragraph 11 c (new) 11 c. Stresses that the rising public debt levels following the pandemic make an appropriate treatment of sovereign exposures more pressing;
Amendment 233 #
Motion for a resolution Paragraph 12 Amendment 234 #
Motion for a resolution Paragraph 12 12. Notes that the transition to a low-
Amendment 235 #
Motion for a resolution 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 assets; calls for clear guidelines for banks based on economic data;
Amendment 236 #
Motion for a resolution Paragraph 12 12.
Amendment 237 #
Motion for a resolution Paragraph 12 12. Notes that the transition to a low- carbon economy presents new challenges and risks related to the
Amendment 238 #
Motion for a resolution 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 th
Amendment 239 #
Motion for a resolution 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 and the consequences of oversubsidising sustainable investments in order to avoid a future bubble of green assets; calls for clear guidelines for banks based on economic data;
Amendment 24 #
Motion for a resolution Recital A A. whereas the
Amendment 240 #
Motion for a resolution Paragraph 12 12. Notes that the transition to a low- carbon economy presents new challenges and risks
Amendment 241 #
Motion for a resolution 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 the build-up of a future bubble of green assets; calls for clear guidelines for banks based on economic data;
Amendment 242 #
Motion for a resolution Paragraph 12 12.
Amendment 243 #
Motion for a resolution Paragraph 12 – point 1 (new) (1) Calls for a timely scrutiny of the development of SME financing by banks and investors against the background that Green Asset Ratio under the Taxonomy Regulation (Regulation (EU) 2020/852, § 8) can consider the loans to SME's only in the division with the consequence of a bad Green Asset Ratio for all banks financing SME's;
Amendment 244 #
Motion for a resolution Paragraph 12 a (new) 12 a. Notes with concern the difficulty to obtain credible and comparable data on C&E assets; welcomes the efforts of the SSM to provide guidance and clarity to banks for self-assessment and the appropriate reporting of environmental and climate change-related risks; welcomes the recent ECB’s launch of supervisory climate risk stress test that will assess how prepared banks are for dealing with financial and economic shocks stemming from climate risk; considers the SSM climate risk stress test an important step in evaluating banks’ practices and identifying concrete areas of improvement; commends, in this context, the recommendation of the ECB guide on climate-related and environmental risks, enhancing a strategic, comprehensive approach to tackling climate-related risk; considers that these self-assessments and reports must be consistent with the proportionality principle and must not undermine banks’ capacity and competitiveness; underlines the importance of the EU Taxonomy legislation;
Amendment 245 #
Motion for a resolution 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 246 #
Motion for a resolution Paragraph 12 a (new) 12 a. Highlights the importance of credit ratings to optimise bank lending; seeks to ensure the integration of climate related risks in corporate credit ratings and calls on the Commission to come forward with a legislative proposal to improve the integration of all types of risks in credit ratings;
Amendment 247 #
Motion for a resolution 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 248 #
Motion for a resolution Paragraph 12 b (new) 12 b. Calls on the SSM to ensure macroeconomic risks are properly analysed and reduced by placing the ten percent of banks accountable for most greenhouse gas emissions under enhanced supervision; calls for the SSM to report to the European Parliament on this list of banks and on their transition plans to reduce their exposure to transition risks and physical risks;
Amendment 249 #
Motion for a resolution 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 25 #
Motion for a resolution Recital A A. whereas the
Amendment 250 #
Motion for a resolution 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) 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) 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 253 #
Motion for a resolution Paragraph 13 Amendment 254 #
Amendment 255 #
Motion for a resolution Paragraph 13 13. Recalls that the impact of special measures implemented during the pandemic by the governments of individual Member States should be taken into account in the assessment of the current condition of banks; stresses that these measures, such as cover schemes for companies affected by COVID, distort the picture, as the decline in real economic activity does not fully translate into banks’ balance sheets; considers that the delayed impact of this downturn on the future health of banks must be taken into account;
Amendment 256 #
13. Recalls
Amendment 257 #
Motion for a resolution Paragraph 14 Amendment 258 #
Motion for a resolution Paragraph 14 Amendment 259 #
Motion for a resolution Paragraph 14 14.
Amendment 26 #
Motion for a resolution Recital A A. whereas the
Amendment 260 #
Motion for a resolution Paragraph 14 14.
Amendment 261 #
Motion for a resolution 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 262 #
Motion for a resolution Paragraph 14 14.
Amendment 263 #
Motion for a resolution Paragraph 14 14. Draws attention to the dangers of a very loose monetary policy stimulating inflation; notes that the ultra- accommodative monetary policy combined with negative deposit rates decreases the profitability and competitiveness of European banks; points out the need for the gradual tightening of monetary policy;
Amendment 264 #
Motion for a resolution Paragraph 14 14. Draws attention to the
Amendment 265 #
Motion for a resolution Paragraph 14 14. Draws attention to the dangers of a very loose monetary policy stimulating inflation; points out th
Amendment 266 #
Motion for a resolution Paragraph 14 14. Draws attention to the dangers of a
Amendment 267 #
Motion for a resolution Paragraph 14 14.
Amendment 268 #
Motion for a resolution Paragraph 14 14. Draws attention to the dangers of a very loose monetary policy stimulating
Amendment 269 #
Motion for a resolution 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 27 #
Motion for a resolution Recital A A. whereas the
Amendment 270 #
Motion for a resolution Paragraph 14 a (new) 14 a. Signals the need to prepare the banking sector for possible increases in interest rates in the euro area; notes that smaller central banks in the EU (Czech Republic, Poland, Hungary) are already raising interest rates in order to slow down inflation;
Amendment 271 #
Motion for a resolution Paragraph 14 a (new) 14 a. Stresses the importance to consider the impact of potentially rising interest rates on banks’ balance sheets;
Amendment 272 #
Motion for a resolution Paragraph 14 b (new) 14 b. Calls on the ECB to end its stimulus packages immediately, including phasing out TLTRO;
Amendment 273 #
Motion for a resolution Paragraph 14 c (new) 14 c. Is concerned that loose monetary policy contributes to lower long-term economic growth and creates an incentive to delay the implementation of necessary structural reforms;
Amendment 274 #
Motion for a resolution Paragraph 15 15.
Amendment 275 #
Motion for a resolution Paragraph 15 15.
Amendment 276 #
Motion for a resolution Paragraph 15 15. Indicates that the trend towards consolidation in the banking sector is likely to increase 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 277 #
Motion for a resolution Paragraph 15 15. Indicates that the trend towards consolidation in the banking sector is likely to increase 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; stresses the benefits of preserving the diversity and multiplicity of financial sectors in maintaining financial stability;
Amendment 278 #
Motion for a resolution Paragraph 15 15.
Amendment 279 #
Motion for a resolution Paragraph 15 15. Indicates that the
Amendment 28 #
Motion for a resolution Recital A a (new) AA. whereas the banking union cannot be considered complete without a European deposit insurance scheme (EDIS), which would complete the economic and monetary union;
Amendment 280 #
Motion for a resolution Paragraph 15 a (new) 15 a. Stresses that strict application of the proportionality principle is key in banking supervision, especially for smaller institutions;
Amendment 281 #
Motion for a resolution Paragraph 15 b (new) Amendment 282 #
Motion for a resolution Paragraph 15 c (new) 15 c. Stresses the benefits of a diversified banking sector in Europe, composed of banks with different business models, legal structures and sizes;
Amendment 283 #
Motion for a resolution Paragraph 16 16. Notes th
Amendment 284 #
Motion for a resolution Paragraph 16 16. Notes the problems and challenges related to home/host issues;
Amendment 285 #
Motion for a resolution Paragraph 16 16. Notes the problems and challenges related to home/host issues;
Amendment 286 #
Motion for a resolution Paragraph 16 16.
Amendment 287 #
Motion for a resolution 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
Amendment 288 #
Motion for a resolution Paragraph 16 16. Notes th
Amendment 289 #
Motion for a resolution Paragraph 16 16. Notes the problems and challenges related to home/host issues; points out that greater market integration requires credible safeguards
Amendment 29 #
Motion for a resolution Recital A a (new) A a. whereas the COVID-19 pandemic crisis has demonstrated that a strong, resilient and well-capitalised banking sector, combined with integrated capital markets, is vital to support the recovery of the European economy;
Amendment 290 #
Motion for a resolution Paragraph 16 a (new) 16 a. Considers that an integrated Banking Union must be contingent on a well-functioning single market for retail financial services; calls on the Commission to assess the obstacles and barriers that arise for consumers when availing of retail banking products such as mortgage loans on a cross-border basis and to propose solutions to ensure that consumers can benefit from retail financial services across borders; notes, furthermore, the high discrepancy in mortgage interest rates across the Union;
Amendment 291 #
Motion for a resolution Paragraph 16 a (new) 16 a. Underlines that the so-called 'Daisy Chain' proposal by the Commission currently being negotiated by the co-legislators also provides additional guarantees for host Member States concerning the levels of internal MREL which need to be held by intermediate parents while deducting the instruments issued by their subsidiaries to ensure sufficient iMREL throughout the chain if required;
Amendment 292 #
Motion for a resolution Paragraph 16 a (new) 16 a. Regrets the Commission’s proposal to apply the output floor to the group level only; is of the opinion that applying the output floor on a fully consolidated basis would ensure a more stable banking system; stresses that this approach is advocated almost unanimously by the central banks of the euro area1a; _________________ 1a https://www.bundesbank.de/resource/blob /622916/d2f24fc04317cee9e152cafa8f415 176/mL/2021-09-07-letter-basel- agreement-data.pdf
Amendment 293 #
Motion for a resolution Paragraph 17 17. Stresses the need for more effective anti-
Amendment 294 #
Motion for a resolution Paragraph 17 17.
Amendment 295 #
Motion for a resolution Paragraph 17 17. Stresses the need for an effective anti-
Amendment 296 #
Motion for a resolution Paragraph 17 17. Stresses the need for effective anti- money laundering supervision and points to the need for cooperation and coordination between prudential supervision activities, anti-money laundering supervision activities and FIUs, in particular as regards the exchange of information on authorisation procedures, qualifying holding acquisitions, ongoing supervision and supervisory measures and sanctions; notes the Commission’s adoption of the anti- money laundering (AML) package of proposals;
Amendment 297 #
Motion for a resolution Paragraph 17 17. Stresses the need for effective anti- money laundering supervision
Amendment 298 #
Motion for a resolution Paragraph 17 17. Stresses the need for effective and greatly improved anti-
Amendment 299 #
Motion for a resolution Paragraph 17 17. Stresses the need for effective anti- money laundering supervision;
Amendment 3 #
Motion for a resolution Citation 9 a (new) Amendment 30 #
Motion for a resolution Recital A b (new) A b. whereas, despite the unprecedented uncertainty caused by new virus variants, the banking sector has responded to the COVID-19 pandemic crisis with resilience, founded on the regulatory overhaul enacted since the global financial crisis, facilitated by the Single European Rulebook and single supervision in the Banking Union, and supported by extraordinary and needed public policy relief measures and capital conservation practices;
Amendment 300 #
Motion for a resolution Paragraph 17 17. Stresses the need for effective anti- money laundering supervision;
Amendment 301 #
Motion for a resolution 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 302 #
Motion for a resolution Paragraph 17 a (new) 17 a. Requests increased transparency standards in banking supervision, for instance in the outcomes of the supervisory review and evaluation process, in order to reinforce the trust of capital and financial markets, companies and citizens, as well as to ensure consistency of treatment across Member States; welcomes improved and refined information-sharing between supervisory institutions;
Amendment 303 #
17 a. Highlights the important role of the banking sector in the battle against tax avoidance; tax fraud, fight against money laundering and terrorism financing; reiterates Parliament’s position that increased audits and ‘know your customer’ requirements are in order for transactions involving countries in Annex I or II of the list of non- cooperative jurisdictions for tax purposes;
Amendment 304 #
Motion for a resolution Paragraph 17 b (new) 17 b. Welcomes the ECB’s efforts over the past two years to enhance exchange of information between the SSM and AML/CFT supervisors to better take into account AML aspects in prudential supervision measures;
Amendment 305 #
Motion for a resolution Paragraph 17 b (new) Amendment 306 #
Motion for a resolution 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 307 #
Motion for a resolution Paragraph 18 18. Underlines th
Amendment 308 #
Motion for a resolution Paragraph 18 18. Underlines the need to protect consumers from abuses and harmful practices and therefore calls on the Commission to ensure that all EU legislation on banking supervision is upheld and urges the Member States to adopt and implement EU legislation properly;
Amendment 309 #
Motion for a resolution Paragraph 18 18. Underlines the
Amendment 31 #
Motion for a resolution Recital A c (new) A c. whereas a more stable, competitive and convergent Economic and Monetary Union requires a solid Banking Union with a European Deposit Insurance Scheme (EDIS) and a more developed and safe Capital Markets Union (CMU);
Amendment 310 #
Motion for a resolution Paragraph 18 18. Underlines the need to protect consumers from abuses
Amendment 311 #
Motion for a resolution Paragraph 18 18. Underlines the need to protect consumers from abuses and harmful practices, especially in the midst of soaring energy costs and continuous price increases that are eroding household incomes;
Amendment 312 #
Motion for a resolution Paragraph 18 a (new) Amendment 313 #
Motion for a resolution Paragraph 18 a (new) 18 a. Calls on the supervisory authorities to monitor financial risks closely, in particular those linked to the shadow banking system, and to take appropriate steps wherever necessary; calls on the supervisory authorities, further, to monitor closely aspects linked to the professionalism of and generational change in governance, in particular in the smallest banks;
Amendment 314 #
Motion for a resolution Paragraph 18 a (new) 18 a. Calls for better regulation of the activities of shadow banking institutions, including credit institutions, in order to enhance customer protection and to ensure effective supervision of the financial market;
Amendment 315 #
Motion for a resolution Paragraph 18 b (new) 18 b. Calls on EU institutions and bodies to prioritise the achievement of full gender balance as soon as possible, including by providing gender-balanced shortlists of candidates for all future appointments requiring Parliament’s consent, including at the ECB and the EU’s top financial institutions, endeavouring to include at least one female and one male candidate per nomination procedure; recalls its resolution of 14 March 2019 aiming to secure gender balance in the forthcoming list of candidates for EU economic and monetary affairs nominations and reiterates its commitment not to take into account lists of candidates where the gender balance principle has not been respected;
Amendment 316 #
Motion for a resolution Paragraph 18 b (new) Amendment 317 #
Motion for a resolution Paragraph 19 19. Welcomes the activities of the SRB in 2021, including the further completion of the Single Resolution Fund; welcomes that overall banks under the SRB’s remit have delivered good progress towards resolvability and in building up loss- absorbing capacity; 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;
Amendment 318 #
Motion for a resolution 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, while catering to the needs of local community banks as a place for small savers, on the basis of the proportionality principle;
Amendment 319 #
Motion for a resolution 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 32 #
Motion for a resolution Recital A d (new) A d. whereas consumer and investor protection is paramount to the deepening of the CMU, and strong EU consumer protection rules providing a strong minimum baseline are necessary; whereas the Banking Union still lacks effective tools to tackle the problems consumers are facing, such as artificial complexity, unfair commercial practices, the exclusion of vulnerable groups from using basic services and the limited involvement of public authorities;
Amendment 320 #
Motion for a resolution Paragraph 19 19. Welcomes the activities of the SRB in 2021
Amendment 321 #
Motion for a resolution Paragraph 19 a (new) 19 a. Recalls the important role of the SRM to provide stability and clarity for the banking sector, investors, consumers and to protect taxpayers; calls for the SRM to be used to its full potential to ensure the orderly resolution of any failing bank with minimal costs to the taxpayer and the real economy; believes that if more European banks were subject to the SRM framework then the more consistent treatment of failing banks would better protect European taxpayers, improve market discipline and reduce the burden on other solvent banks and taxpayers;
Amendment 322 #
Motion for a resolution Paragraph 19 a (new) 19 a. Welcomes the introduction of a backstop to the SRF in 2022, two years earlier than originally envisaged, in the form of a revolving credit line from the ESM, thereby providing a safety net for bank resolutions in the Banking Union; stresses the importance of the SRF in strengthening the crisis management framework and as an important step towards completing the Banking Union;
Amendment 323 #
Motion for a resolution Paragraph 19 a (new) 19 a. Insists on holding banks solely responsible for their performance instead of letting taxpayers shoulder the burden of a crisis management framework;
Amendment 324 #
Motion for a resolution Paragraph 19 b (new) 19 b. Supports the revision of the public interest assessment criteria by the SRB so that the choice of the best resolution strategy to be followed in case a bank enters into difficulties is applied in a more consistent and predictable manner; proposes that an alternative liquidation regime for small and medium-sized banks be considered; recalls that the setting of the minimum requirement for own funds and eligible liabilities (MREL) level is decided by the SRB on a case-by-case basis;
Amendment 325 #
Motion for a resolution Paragraph 20 20. Supports the specification of the public interest assessment criteria so that
Amendment 326 #
Motion for a resolution 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;
Amendment 327 #
Motion for a resolution 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
Amendment 328 #
Motion for a resolution Paragraph 20 20. Supports the clearer specification of the public interest assessment criteria so that the SRM is applied in a more consistent and predictable manner; proposes that consideration be given to an alternative liquidation regime for small and medium-sized banks
Amendment 329 #
Motion for a resolution Paragraph 20 20.
Amendment 33 #
Motion for a resolution Recital A e (new) A e. whereas the completion of the Banking Union beyond its two existing pillars, in particular the establishment of an EDIS, remains a priority;
Amendment 330 #
Motion for a resolution 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;
Amendment 331 #
Motion for a resolution 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
Amendment 332 #
Motion for a resolution 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 333 #
Motion for a resolution Paragraph 20 a (new) 20 a. Believes that the Banking Union will further disintegrate due to moral hazard and lead to a permanent Transfer Union if mechanisms such as the backstop for the Single Resolution Fund (SRF) and a European Deposit Insurance Scheme (EDIS) are implemented; regrets that insufficient progress in risk reduction in some member states serves as an argument for mutualisation of deposit insurance schemes, creating incentives for some member states not to reduce risk, or even to engage in even more excessive risk-taking; points out that the absence of a proper impact assessment of the EDIS proposal is fundamentally at odds with the principles of sound governance;
Amendment 334 #
Motion for a resolution Paragraph 20 a (new) 20 a. Supports the idea of considering the role of group recovery and resolution plans in the crisis management framework, such that the calibration of MREL and banks’ contributions to the various safety nets would be truly risk- based, reflecting the likelihood and magnitude of the use of these safety nets under the preferred crisis management strategy;
Amendment 335 #
Motion for a resolution Paragraph 20 b (new) 20 b. Calls for enhancing the use of deposit book transfer strategies in resolution to handle failures of all kinds of banks, by enhancing their access to funding in resolution subject to market exit after implementing the transfer; finds merit in increasing the role of DGS to enable such transfer strategies within resolution, for example using the DGS to bridge the gap between the 8% bail-in prerequisite to access the resolution fund and the bank’s actual loss-absorbing capacity excluding deposits that are meant to be transferred;
Amendment 336 #
Motion for a resolution Paragraph 20 c (new) Amendment 337 #
Motion for a resolution Paragraph 21 21. Supports the updating of State aid rules, including a review of the Banking Communication of 30 July 2013, in order to ensure their greater adequacy and consistency with the SRM framework
Amendment 338 #
Motion for a resolution Paragraph 21 21. Supports the updating of State aid rules in order to ensure their greater
Amendment 339 #
Motion for a resolution Paragraph 21 21. Supports the
Amendment 34 #
Motion for a resolution Recital A f (new) A f. whereas the provisions set out in the Deposit Guarantee Schemes Directive (DGSD) provide for a minimum baseline of protection for depositors; whereas, however, depositors across the Banking Union should enjoy the same level of protection through the establishment of an EDIS;
Amendment 340 #
Motion for a resolution Paragraph 21 21. Supports the updating of State aid rules in order to ensure their greater
Amendment 341 #
Motion for a resolution Paragraph 21 21. Supports the updating of State aid rules in order to ensure their greater adequacy and consistency with the SRM framework; emphasises that one of the goals of such an update should be to
Amendment 342 #
Motion for a resolution 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 343 #
Motion for a resolution Paragraph 21 a (new) 21 a. Requests increased transparency standards in banking resolution, for instance in the outcomes of the resolution review and evaluation process, in order to reinforce the trust of capital and financial markets, companies and citizens, as well as to ensure consistency of treatment across Member States;
Amendment 344 #
Motion for a resolution 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 345 #
Motion for a resolution Paragraph 21 a (new) 21 a. Highlights that the envisaged targeted adjustments to the crisis management regime should make it more coherent, credible and effective;
Amendment 346 #
Motion for a resolution Paragraph 21 a (new) 21 a. Takes note of the statement agreed by the Eurogroup at its meeting of 16 December 2021 which recalls its full political commitment to the Banking Union, and requests the Eurogroup to work in inclusive format to finalise on a consensual basis a time-bound work plan on the way towards its completion; calls on the Eurogroup to make all efforts in order to speed-up the process; recalls that the European Parliament is a co- legislator for the EDIS legislation and it also needs to urgently advance on its work;
Amendment 347 #
Motion for a resolution Paragraph 21 b (new) 21 b. Regrets that Member States continue to act outside the Community framework, undermining Parliament’s role as co-legislator; asks to be kept informed of the ongoing discussions at the level of the Eurogroup and of the High-level Working Group on the EDIS;
Amendment 348 #
Motion for a resolution Paragraph 21 c (new) 21 c. Stresses the importance of depositors across the Banking Union enjoying the same level of protection for their savings irrespective of their bank's location; points out that the implementation of the DGSD, guaranteeing up to EUR 100 000 in banking deposits, aims to contribute to a higher level of deposit protection but is not sufficient; acknowledges the Commission’s attempt to further strengthen citizens’ confidence in the protection of deposits by introducing an EDIS;
Amendment 349 #
22. Recalls that the SSM and the SRM operate at EU level, while deposit guarantee schemes (DGSs) are operated at national level;
Amendment 35 #
Motion for a resolution Recital A g (new) A g. whereas the backstop for the Single Resolution Fund (SRF) will have been introduced by 2022, two years earlier than previously envisaged, providing a common, system-wide safety net for banks in resolution;
Amendment 350 #
Motion for a resolution Paragraph 22 22. Recalls that the SSM and the SRM operate at EU level, while deposit guarantee schemes (DGSs) are operated at national level; recognises that a European deposit insurance scheme (EDIS)
Amendment 351 #
Motion for a resolution Paragraph 22 22. Recalls that the SSM and the SRM operate at EU level, while deposit guarantee schemes (DGSs) are operated at national level; recognises that a European deposit insurance scheme (EDIS) would improve protection for depositors in the EU; calls, therefore, for the rapid approval and implementation of the EDIS as a means to complete the banking union and turn it into a more effective tool with a view to fully establishing the economic and monetary union;
Amendment 352 #
Motion for a resolution Paragraph 22 22. Recalls that the SSM and the SRM operate at EU level, while deposit guarantee schemes (DGSs) are operated at national level; recognises that a European deposit insurance scheme (EDIS) that improves the link between banks and their sovereign debt, establishing a real single market for deposits that provides equal conditions for all depositors, would improve protection for depositors in the EU;
Amendment 353 #
Motion for a resolution Paragraph 22 22. Recalls that the SSM and the SRM operate at EU level, while deposit guarantee schemes (DGSs) are operated at national level;
Amendment 354 #
Motion for a resolution Paragraph 22 22. Recalls that the SSM and the SRM operate at EU level, while deposit guarantee schemes (DGSs) are operated at national level; recognises that a European deposit insurance scheme (EDIS) would improve protection for depositors in the EU and contribute to unifying the banking market within the Banking Union;
Amendment 355 #
Motion for a resolution Paragraph 22 22. Recalls that the SSM and the SRM operate at EU level, while deposit guarantee schemes (DGSs) are operated and financed at national level
Amendment 356 #
Motion for a resolution Paragraph 22 22. Recalls that the SSM and the SRM operate at EU level, while deposit guarantee schemes (DGSs) are operated at national level;
Amendment 357 #
Motion for a resolution Paragraph 22 22. Recalls that the SSM and the SRM operate at EU level, while deposit guarantee schemes (DGSs) are operated at national level; recognises that a European deposit insurance scheme (EDIS) would improve protection for depositors in the EU and their trust in the banking sector;
Amendment 358 #
Motion for a resolution Paragraph 22 a (new) 22a. Notes the importance of depositors throughout the banking union enjoying the same level of protection for their savings, regardless of which country they are in; calls for a firm commitment on the part of the Member States to develop a model consistent with the EU's interests; believes that the introduction of an EDIS is an essential pillar and a prerequisite for the completion of the banking union;
Amendment 359 #
Motion for a resolution 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 36 #
Motion for a resolution Recital A h (new) Amendment 360 #
Motion for a resolution Paragraph 22 a (new) 22 a. points out that the provisions in the DGSD already provide for a very high minimum baseline of protection of depositors;
Amendment 361 #
Motion for a resolution Paragraph 23 23. Notes the ongoing discussion of various concepts for the EDIS; understands that this discussion should take account of Parliament's positions, of input from the European Central Bank and national central banks, which are highly qualified to give input, of the proposals from the European banks and other economic and financial agents involved, of experience from similar national tools and of good practices in this area put forward by third countries; insists, however, that this discussion process should, out of necessity, be fast and focused on the key aspects with a view to the reasonably rapid adoption of the EDIS;
Amendment 362 #
Motion for a resolution Paragraph 23 23. Notes the ongoing discussion of various concepts for the EDIS; welcomes the renewed efforts of the Eurogroup in progressing Banking Union in order to reach agreement on the different work streams and files, including EDIS; reiterates Parliament's commitment to working towards an agreement on the EDIS, which should be combined with appropriate risk reduction measures;
Amendment 363 #
Motion for a resolution Paragraph 23 23. Notes the ongoing discussion of various concepts for the EDIS and calls for an exemption for banks that have already a well established institutional protection scheme;
Amendment 364 #
Motion for a resolution Paragraph 23 23. Notes the ongoing discussion of various concepts for the EDIS; considers, nonetheless, that any short-term solution found should not prevent the establishment of a fully mutualised EDIS as soon as possible;
Amendment 365 #
Motion for a resolution 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 366 #
Motion for a resolution Paragraph 23 23. Notes the ongoing discussion of various concepts for the EDIS; calls for the swift adoption of an ambitious and time- bound roadmap to complete the Banking Union;
Amendment 367 #
Motion for a resolution Paragraph 23 23. Notes the ongoing discussion of various concepts for the EDIS, including exceptions for well established institutional protection schemes;
Amendment 368 #
Motion for a resolution Paragraph 23 23. Notes the ongoing discussion of various concepts for the EDIS; favours a deposit reinsurance scheme as the next step;
Amendment 369 #
Motion for a resolution Paragraph 23 a (new) 23 a. Regrets that insufficient progress in risk reduction in some Member States serves as an argument for mutualisation of deposit insurance schemes, creating incentives for some Member States not to reduce risk, or even to engage in even more excessive risk-taking; points out that the absence of a proper impact assessment of any EDIS proposal is fundamentally at odds with the principles of sound governance;
Amendment 37 #
Motion for a resolution Recital A i (new) A i. whereas the EU and the UK are currently committed to maintaining regulatory and supervisory cooperation in the field of financial services; whereas this cooperative approach should underpin long-term EU-UK relations;
Amendment 370 #
Motion for a resolution Paragraph 23 a (new) 23 a. Underlines the importance of ensuring that the banks covered by EDIS are aligned with those covered by the CRR and that Investor Protection Schemes (IPS) must also be included to ensure a level playing field and financial security;
Amendment 371 #
Motion for a resolution Paragraph 23 b (new) 23 b. Further underlines the importance of EDIS being risk based and ensuring that national contributions are adapted based on their risk profiles;
Amendment 372 #
Motion for a resolution Paragraph 24 Amendment 373 #
Motion for a resolution Paragraph 24 24.
Amendment 374 #
Motion for a resolution Paragraph 24 24. Considers that the main obstacles for EDIS are concerns about risks in some banking systems
Amendment 375 #
Motion for a resolution Paragraph 24 24. Considers that the main obstacles
Amendment 376 #
Motion for a resolution 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, exempting those institutions which already have a stringent risk sharing scheme in place;
Amendment 377 #
Motion for a resolution Paragraph 24 24. Considers that the main obstacles for EDIS are concerns about risks in some banking systems;
Amendment 378 #
Motion for a resolution 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; notes that such risk- reduction measures should precede any further risk sharing;
Amendment 379 #
Motion for a resolution Paragraph 24 24.
Amendment 38 #
Motion for a resolution Recital A j (new) A j. whereas the European Commission will extend its temporary permit allowing European banks and fund managers to use UK clearing houses therefore avoiding any short-term cliff- edge effects;
Amendment 380 #
24. Considers that the main obstacles for EDIS are concerns about risks in some banking systems and a general bail-out fatigue; stresses that opt-outs and the implementation of credible and effective risk reduction measures could enable an agreement on EDIS;
Amendment 381 #
Motion for a resolution Paragraph 24 24. Considers that the main obstacles for EDIS are concerns about risks and the quality of risk monitoring in some banking systems; stresses that the implementation of credible and effective risk reduction measures could enable an agreement on EDIS;
Amendment 382 #
Motion for a resolution 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
Amendment 383 #
Motion for a resolution Paragraph 24 24. Considers that the main obstacles for EDIS are concerns about risks in some banking systems; stresses that the successful implementation of credible and effective risk reduction measures could enable an agreement on EDIS;
Amendment 384 #
Motion for a resolution Paragraph 24 24.
Amendment 385 #
Motion for a resolution Paragraph 24 a (new) 24 a. Considers that an extensive Asset Quality Review should be conducted before a bank can be admitted to any form of an EDIS in order to prevent hidden risks from emerging after having joined risk-sharing mechanisms;
Amendment 386 #
Motion for a resolution Paragraph 24 a (new) 24 a. Recognises the risk-mitigating effect of institutional protection schemes and highlights that this should be preserved under any EDIS;
Amendment 387 #
Motion for a resolution Paragraph 24 a (new) 24 a. Recalls that comparable and low NPL rates are a necessary precondition to the implementation of EDIS;
Amendment 388 #
24 a. Recalls that comparable and low NPL rates are a necessary precondition to the implementation of EDIS;
Amendment 389 #
Motion for a resolution Paragraph 24 b (new) 24 b. Considers that prudent risk management requires proper regulatory treatment of sovereign exposure; highlights in this regard that capital requirements must reflect the actual risk borne by banks in the market; stresses that the European debt crisis demonstrated that national government bonds are essentially not risk-free;
Amendment 39 #
B. whereas the B
Amendment 390 #
Motion for a resolution Paragraph 24 c (new) 24 c. Stresses that the cost of any EDIS must be borne entirely by the banking system in order to prevent the taxpayer from having to contribute to failing banks;
Amendment 391 #
Motion for a resolution Paragraph 24 d (new) 24 d. Stresses that further integration must serve financial stability and should never undermine it; stresses in this regard in particular that banks must remain sufficiently capitalised at all times;
Amendment 392 #
Motion for a resolution Paragraph 25 Amendment 393 #
Motion for a resolution Paragraph 25 25. Points out that any
Amendment 394 #
Motion for a resolution Paragraph 25 25. Points out that any EDIS should take into account clear rules for the participation or non-participation of non- euro area Member States;
Amendment 395 #
Motion for a resolution Paragraph 26 Amendment 396 #
Motion for a resolution Paragraph 26 26. Supports
Amendment 397 #
Motion for a resolution Paragraph 26 a (new) 26 a. Recalls that gold is money and fiat is debt; welcomes the fact that the German Bundesbank, for the first time since the introduction of the euro, has started to buy gold, thereby taking the necessary precautions for the inevitable; welcomes the fact that the Polish central bank has repatriated its gold reserves; welcomes the recent statement by the Dutch Central Bank that if there were to be a major monetary reset, gold stock can serve as a basis to rebuild the global monetary system; highly welcomes the decision of central bank of Hungary to treble its gold reserves to more than 94.49 tons; underlines that gold bolsters confidence in the stability of the central bank’s balance sheet and creates a sense of security; calls, therefore, on all national central banks, especially those in the euro area, to hold on to sufficient amounts of physical gold, and repatriate any gold reserves currently kept outside the national borders;
Amendment 398 #
Motion for a resolution Paragraph 27 27. Instructs its President to forward
Amendment 4 #
Motion for a resolution Citation 9 b (new) — having regard to the Commission's consultation on improving the EU’s macroprudential framework for the banking sector of 30 November 20211a; _________________ 1a https://ec.europa.eu/info/consultations/fin ance-2021-banking-macroprudential- framework_en
Amendment 40 #
Motion for a resolution Recital B B. whereas the BU is open to all EU Member States; whereas Bulgaria and Croatia have joined ERM II and entered the Banking Union;
Amendment 41 #
Motion for a resolution Recital B B. whereas the BU is open to all EU Member States, provided the conditionality of meeting the ERM II requirements;
Amendment 42 #
Motion for a resolution Recital B a (new) B a. whereas the EU banking sector has responded to the COVID-19 pandemic with resilience, with the help of extraordinary public policy relief measures and a resilient EU regulatory framework, and without having endured a corresponding financial crisis; whereas, as the EU banking sector emerges from the pandemic, the Union must continue to uphold high standards, particularly when it comes to capital requirements and risk management practices, to ensure the resilience of the sector in the future;
Amendment 43 #
Motion for a resolution Recital B a (new) B a. whereas a Banking Union requires first and foremost accelerated efforts by various Member States to reduce their high levels of non-performing loans and prevent their increase in the future;
Amendment 44 #
Motion for a resolution Recital B b (new) B b. whereas sound public finances are a necessary condition for the macro- financial stability of the Banking Union;
Amendment 45 #
Motion for a resolution Recital B c (new) B c. whereas the near zero interest rates greatly reduce the profitability of banks in one of their most important areas of business activity, the provision of credit for long-term investments;
Amendment 46 #
Motion for a resolution Recital C C. whereas the
Amendment 47 #
Motion for a resolution Recital C C. whereas
Amendment 48 #
Motion for a resolution Recital C C. whereas the
Amendment 49 #
Motion for a resolution Recital C C. whereas the
Amendment 5 #
Motion for a resolution Citation 9 c (new) — having regard to the Commission's legislative package on Anti-money laundering and countering the financing of terrorism of 20 July 20211a; _________________ 1a https://ec.europa.eu/info/publications/210 720-anti-money-laundering-countering- financing-terrorism_en
Amendment 50 #
Motion for a resolution Recital C C. whereas the
Amendment 51 #
Motion for a resolution Recital C C. whereas the
Amendment 52 #
Motion for a resolution Recital C C. whereas the problems of the banking sector
Amendment 53 #
Motion for a resolution 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 54 #
Motion for a resolution Recital C a (new) Amendment 55 #
Motion for a resolution Recital D D. whereas
Amendment 56 #
Motion for a resolution Recital D D. whereas
Amendment 57 #
Motion for a resolution Recital D D. whereas some financial institutions in the BU are heavily invested in the debt of their own home sovereign, with total sovereign exposure of banks in the euro area currently amounting to EUR 2.9 trillion, i.e. a substantial 9% of total assets, including EUR 2.1 trillion claims on domestic governments; whereas sovereign risk on bank balance sheets has still not been tackled, in contrast to other risk mitigation measures introduced by the Banking Union; whereas the pandemic´s surge in public debt highlights the need for reform;
Amendment 58 #
Motion for a resolution Recital D D. whereas so
Amendment 59 #
Motion for a resolution Recital D D. whereas the lack of a common safe asset in the euro area entails that some financial institutions in the BU are heavily invested in the debt of their own home sovereign;
Amendment 6 #
Motion for a resolution Citation 10 a (new) — having regard to the ECB's report on its supervisory priorities for 2022-24 on 7 December 20211a; _________________ 1a https://www.bankingsupervision.europa.e u/banking/priorities/html/ssm.supervisory _priorities2022~0f890c6b70.en.html
Amendment 60 #
Motion for a resolution Recital D D. whereas
Amendment 61 #
Motion for a resolution Recital D D. whereas some financial institutions in the B
Amendment 62 #
Motion for a resolution Recital D a (new) DA. whereas the banking sector plays a crucial role in supporting Europe's economic recovery, particularly through the channelling of key financing to foster investment and thus create business opportunities and jobs;
Amendment 63 #
Motion for a resolution Recital D a (new) D a. whereas the Banking Union helps to break the doom loop between national governments and national banking systems;
Amendment 64 #
Motion for a resolution Recital E E. whereas the role of the banking sector is crucial to the recovery and transition to a low-carbon economy; whereas climate change, environmental degradation and the transition to a low- carbon economy are factors to be taken into account when assessing the sustainability of banks’ balance sheets, as a source of risk potentially impacting investments across regions and sectors; whereas further assessment needs to be conducted on the best way on how to internalise these potential risks;
Amendment 65 #
Motion for a resolution Recital E E. whereas the role of the banking sector is crucial to the recovery and transition to a
Amendment 66 #
Motion for a resolution Recital E E. whereas the role of the banking sector is crucial to the recovery, especially to SME's, and transition to a low-carbon economy;
Amendment 67 #
Motion for a resolution Recital E E. whereas the role of the banking sector and of the financial markets sector as a whole is crucial to the recovery and transition to a low-carbon economy;
Amendment 68 #
Motion for a resolution Recital E E. whereas the
Amendment 69 #
Motion for a resolution Recital E E. whereas the role of the banking sector is crucial to the recovery and transition to a
Amendment 7 #
Motion for a resolution 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 70 #
Motion for a resolution Recital E a (new) E a. whereas in November 2021 the ECB comprehensively assessed the state of climate-related and environmental (C&E) risk management in the banking sector which demonstrated that banks have made progress in adapting their governance and policies but that there is a need to deploy forward- looking risk management tools that can capture longer-term climate-related and environmental risks;
Amendment 71 #
Motion for a resolution Recital E a (new) Amendment 72 #
Motion for a resolution Recital E a (new) E a. whereas 25 big European banks, including those having made net-zero pledges, invested EUR48 billion in companies that seek to develop new fossil fuel production; whereas the IEA showed that to reach the goals of the Paris agreement and the EU climate law no new fossil fuel projects should be developed;
Amendment 73 #
Motion for a resolution Recital E b (new) E b. whereas the ECB concluded that 150 banks (<10% of total banks) account for 30% of total exposures to climate transition risks and physical risks and account for 60% of total emissions in the euro area; whereas, without orderly and rapid action on climate change, these banks suffer significant transition risks and would be five times more vulnerable than other banks to defaults in their portfolio as a result of climate change;
Amendment 74 #
Motion for a resolution Recital E c (new) E c. whereas the main physical risks identified in the ECB's economy-wide climate stress test are the risks of wildfires, which is unequally distributed in the euro area; whereas transition risks due to exposures in high-emitting industries are more equally spread in the euro area;
Amendment 75 #
Motion for a resolution Recital F F. whereas the
Amendment 76 #
Motion for a resolution Recital F F. whereas there are numerous challenges to the digitalisation of finance, in particular the need to combat cybercrime, which threatens the security of customers;
Amendment 77 #
Motion for a resolution Recital F F. whereas there
Amendment 78 #
Motion for a resolution Recital F F. whereas there are numerous challenges to the digitalisation of finance; whereas same risks should be subject to the same prudential rules;
Amendment 79 #
Motion for a resolution Recital F a (new) FA. whereas the challenges arising from the digitalisation of economies, of the banking sector and of financial markets include crypto-assets and crypto- currencies, which are complex phenomena that call for sound political responses which balance incentive to innovate and protection for investors and consumers; and whereas banks have a growing responsibility in this area;
Amendment 8 #
Motion for a resolution 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 80 #
Motion for a resolution Recital F a (new) F a. whereas financial institutions rely increasingly on the use of information and communications technology (ICT) which heightens the risk of cyber-attacks; whereas the EU banking sector must increase its cyber resilience to ensure that ICT systems can withstand various types of cyber security threats;
Amendment 81 #
Motion for a resolution Recital G G. whereas there
Amendment 82 #
Motion for a resolution Recital G G. whereas there is a need for effective anti-money laundering supervision; whereas the further strengthening and harmonisation of EU prudential and anti- money laundering supervision and enforcement, which are necessary to protect the integrity of the EU’s financial system, are a priority;
Amendment 83 #
Motion for a resolution Recital G G. whereas there is an urgent need for more effective EU anti-money laundering supervision; whereas there still exists major differences in approach taken to AML/CFT supervision by national authorities and in the application of EU AML legislation;
Amendment 84 #
Motion for a resolution Recital G G. whereas the
Amendment 85 #
Motion for a resolution Recital G G. whereas there is a need for an effective and robust anti-money laundering supervis
Amendment 86 #
Motion for a resolution Recital G G. whereas there is a need for effective anti-money laundering supervision that bolsters the European banking system and protects it from threats from third countries;
Amendment 87 #
Motion for a resolution Recital G G. whereas
Amendment 88 #
Motion for a resolution Recital H H. whereas consumer
Amendment 89 #
Motion for a resolution Recital H H. whereas
Amendment 9 #
Motion for a resolution Citation 14 a (new) — having regard to the ECB economy-wide climate stress-test of September 202114a _________________ 14a https://www.ecb.europa.eu/pub/pdf/scpops /ecb.op281~05a7735b1c.en.pdf
Amendment 90 #
Motion for a resolution Recital H H. whereas consumers, investors and all depositors should be well protected in the context of a well-functioning Banking Union and should be kept well informed of any decisions that impact them;
Amendment 91 #
Motion for a resolution Recital H H. whereas consumers, investors and all depositors should
Amendment 92 #
Motion for a resolution Recital H H. whereas consumers, investors and
Amendment 93 #
Motion for a resolution Recital H H. whereas consumers, investors and
Amendment 94 #
Motion for a resolution Recital I I. whereas one of the key objectives of Banking Union is that taxpayers should not bear the cost of remedial action when a bank fails;
Amendment 95 #
Motion for a resolution Recital I a (new) Ia. whereas the successful completion of the banking union depends on other EU projects and major ambitions, such as the capital markets union; stresses that there is an interconnection between both projects, and that developing one should necessarily lead to progress and advances with the other; takes the view that both the banking union and the capital markets union are essential to bolstering the EU economy in the post-COVID-19 era;
Amendment 96 #
Motion for a resolution Recital I a (new) I a. whereas the crisis management & deposit insurance (CMDI) framework should ensure a consistent and efficient approach for all banks, regardless of size or business model, as well as contribute to preserving financial stability, minimise the use of taxpayers’ money and ensure a level playing field across the EU, while duly taking into account the principle of subsidiarity;
Amendment 97 #
Motion for a resolution Recital I a (new) I a. whereas in carrying out its supervisory activities, the ECB has so far failed to take the proportionality principle sufficiently into account;
Amendment 98 #
Motion for a resolution Recital I a (new) I a. whereas absolute NPL volumes in some Member States remain too high despite overall NPL rates across the EU being on a downward trajectory;
Amendment 99 #
Motion for a resolution Recital I a (new) I a. whereas the sovereign-bank doom loop has not been properly addressed yet
source: 719.659
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History
(these mark the time of scraping, not the official date of the change)
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