15 June 2005

ECON discussion on Capital Adequacy Directive

A first consideration of the 888 posted amendments on the Capital Adequacy Directive took place on 14 and 15 June. Rapporteur Alexander Radwan underlined his intention to finalize the report in a single reading. Despite the large quantity, amendments concentrate on a limited number of articles and compromises in Parliament should be possible.

On supervisory issues mentioned in article 69 the rapporteur calls for a revision clause after five years. Mr Radwan does not back the amendments intended to increase the 1 million threshold to 3 million, but intends to amend the text in the way to exclude mortgages. Both amendments were broadly backed by other MEPs.

Committee Chairperson Ms Beres reminded the Committee members that the Directive should deal with risk assessment issues. However, many amendments deal with competition issues which is not in the scope of the Directive.

Speaking for the Commission, Mr Pearson reminded that the CAD is not a Lamfalussy Directive. Concerning some complaints as to the technical complexity of the Directive he said that this might be difficult for non-professionals, however this is day to day bread and butter to banks and regulators so the Parliament has to deal with the technical details.

Mr Pearson stated that the Commission is fully in line with most of the amendments posted by Parliament. The Commission agrees with the amendments on Art 69, especially with the amendment of Ms van den Burg. It also fully supports Ms Beres amendment on Intergroup Exposures on Article 89.

The Commission also supports to stick to the 1 million threshold as mentioned in the proposal. It also called to stick to the 90 days rule period which is internationally accepted.

Mr Radwan will start working on possible compromise amendments within the next week. Vote in Committee should take place on 13 July, vote in Plenary in September.

© European Parliament