The Committee on Economic and Monetary Affairs adopted
the report by Peter SIMON (S&D, DE) on the proposal for a
directive of the European Parliament and of the Council amending
Directive 2013/36/EU as regards exempted entities, financial
holding companies, mixed financial holding companies, remuneration,
supervisory measures and powers and capital conservation
measures.
The committee responsible recommended that the
European Parliament’s position adopted at first reading under
the ordinary legislative procedure should amend the Commission
proposal as follows.
The proposal to amend Directive 2013/36/EU of the
European Parliament and of the Council (Capital Requirements
Directive) provides for a binding leverage ratio, designed
to prevent institutions from excessive leverage, and a binding net
stable funding ratio.
It strengthens risk-sensitive capital
requirements in particular in the area of market risk,
counterparty credit risk, and for exposures to central
counterparties (CCPs). In addition, it requires for Global
Systemically Important Institutions (G-SIIs) to hold minimum levels
of capital and other instruments which bear losses in resolution.
This requirement, known as 'Total Loss-Absorbing Capacity' or
TLAC), will be integrated into the existing MREL (Minimum
Requirement for own funds and Eligible Liabilities) system, which
is applicable to all banks.
The amendments focus on:
- the importance of streamlining the coordination
mechanism between authorities, simplifying the activation of
macroprudential policy tools and enhancing the macroprudential
toolbox to enable authorities to respond to systemic risks in an
efficient and timely manner;
- the revision of the respective competences of
macro-prudential authorities established at Member State and Union
level, so as to better delineate responsibilities for risk
assessment and policy development, including coordination and
reporting procedures between authorities;
- the pivotal role that the European Systemic Risk
Council (ESRC) should play in coordinating macro-prudential
measures and in transmitting information on planned
macro-prudential measures to the Member States, in particular by
publishing on its website the macro-prudential measures adopted and
by sharing information between authorities after notification of
planned macro-prudential measures;
- consistent application by credit institutions and
investment firms of the principle of equal pay for equal
work by demonstrating that their remuneration policies are
non-discriminatory between women and men;
- the use of own funds add-ons imposed by the
competent authorities to cover the risks incurred by certain
institutions as a result of their activities. However, these
requirements should not conflict with the specific treatment
provided for in Regulation (EU) No 575/2013 to avoid unintended
impacts on financial stability, credit supply and the real
economy;
- the introduction of a leverage ratio adjustment for
global systemically important institutions (G-SIIs) to be set at
50% of a G-SIIs risk-weighted higher-loss absorbency
requirements;
- the need to take into account the size, structure and
internal organisation of institutions and the nature, scope and
complexity of their activities in the context of supervisory review
and evaluation;
- the possibility for competent authorities to tailor
the method of application of the review and evaluation process
to capture the common characteristics and risks of institutions
with a comparable risk profile. However, such tailoring should not
prevent the competent authorities from taking into account the
specific risks affecting each institution, nor alter the
institution-specific nature of the measures imposed;
- the importance of the completion of banking
union for the smooth functioning of cross-border markets and
for bank customers to benefit from the positive effects that result
from a harmonised and integrated European banking market ensuring a
level playing field for European banks. The Commission should
therefore, after close consultation with the European Central Bank
(ECB), the ESRB and the European Banking Authority (EBA), review
the current framework, while maintaining a balanced and
prudentially sound approach towards home and host countries and
taking into account potential benefits and risks for Member States
and regions.
The amended text provides that where two or more
institutions in the Union, which are part of the same group of
third countries, they shall be required to have a single
intermediate parent undertaking established in the Union.
Competent authorities may allow institutions to have two
intermediate EU parent companies under certain conditions. The
provisions relating to the exercise of supervision on a
consolidated basis are specified.
Lastly, an amendment stresses that sovereign
bonds play a crucial role in providing high-quality liquid
assets for investors and stable funding sources for governments.
However, in some Member States financial institutions have overly
invested in bonds issued by their own governments. Banks should
continue their effort towards more diversified sovereign bond
portfolios.