MEPs raised concerns on how the European crisis management framework will have to be differentiated among systemic and non-systemic banking groups. Rapporteur Elisa Ferreira (S&D/PT) called on the future EBA to clarify and define what a systemically risky financial institution is.
Rapporteur Elisa Ferreira (S&D/ PT) started by presenting her draft report where she highlighted the following recommendations:
· Common resolution insolvency regime.
· Building a company law system to be implemented on.
· Empowerment of the contingency plans – willing bills – effective crisis management.
· Need to draw the line between systemic a non-systemic cross border groups. The ESRB will have to start working on the definition of a systemic bank as soon as it is operational in order to have a clear idea of what is a systemic risk bank.
She emphasized that coherence is a must between the different ongoing initiatives in financial markets, such as the supervisory architecture- the Omnibus and the EBA directive- as well as CRD IV.
Danuta Hubner (EPP/PL) raised concerns on the creation of the resolution fund as it will create moral hazard and she also pointed out that it should be apply to all banking groups irrelevant of whether they are systemic or not.
Kay Swinburne (ECR/UK) raised doubts on how the supervisors will control large global banking groups with the current staff of CEBS - future EBA. She also was worried about the lack of international coordination on that issue with other major financial centres in the world.
Sven Giegold (Greens/DE) said that there are still many details to be define on the future European crisis management framework as it is the case of the fee that banks will have to pay for the resolution fund. This issue will need to be discussed on the CRD IV.
Peter Skinner (S&D/ UK) said that the differentiation between systemic and non systemic bank cannot be based just on a cross-borders approach because some national banks such as Northern Rock created also systemic risk and destabilize the European financial system.
Calendar:
27 April - deadline for amendments
1 June - consideration of amendments
22 June - vote in ECON committee
1 Sept - vote in Plenary
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