13 April 2012

ECON second exchange of views on amendments on CRD IV/CRR

Rapporteur Othmar Karas (EPP, AT) presented the following information:

• There will be an extraordinary Finance Ministers meeting on the 2nd May on CRD IV/CRR. The EP wants to start the trialogue negotiations as soon as possible. 
• There are five main points where broad guidelines have been agreed:
  • SMEs’ risk weight: Almost all political groups are going on the same direction except for small details. Access to credit for SMEs should be facilitated, reducing the risk weight by 30 per cent for SMEs’ loans. The other possibility is to increase the retail threshold and on this issue the Commission has asked EBA to analyse it. The EBA will make a proposal by September but the EP would prefer the EBA to present the results in May so it can be debated in ECON committee.
  • Liquidity: The evaluation period should be effectively set out as well as the delegated acts.
  • Remuneration and bonuses: The ECON committee is looking at setting limits and wants the variable remuneration not to be higher than the fix remuneration.
  • Systemically important financial institutions (SIFIs): Based on the Basel work, the ECON committee is looking at the additional capital buffer for SIFIs. The Capital buffer would be settled from 1 per cent to 3 per cent and under exceptional circumstances would be up to 10 per cent.
  • Different business models: The ECON committee will invite Liikanen to participate in a hearing to explain the different banking structures to MEPs. The ECON committee will analyse whether or not there is room to adapt CRD IV/CRR to different business models. Karas also stressed that it is not possible to satisfy all specificities of each Member State banking sector.

Shadow rapporteur Udo Bullmann (S&D, DE) presented the following important points for his political group:

• Banks cannot assume anymore that taxpayers will pay for their mistakes.
• There should be a differentiation between banks who create risk and those who don’t.
• Remuneration limits should be introduced. Bullmann said that there will be a conflict with the Council on this issue because the Council will try to block it.

Shadow rapporteur Sharon Bowles (ALDE, UK) said that the definition of eligible collateral still needs to be further debated.

Shadow rapporteur Philippe Lamberts (Greens, BE) also agreed that there is a need to differentiate among banks and he supports three categories: (i) SIFIs, (ii) fundamental banks and (iii) universal banks.

© European Parliament