Banking Union – annual report 2023

Wording as published by the EP, in English.

1. Amendment 1Rejected

   Recital H

   Tabled by Philippe Lamberts · Verts/ALE

   H. Removed: whereas the lack of cross-border consolidation of the EU banking sector is affecting its global competitiveness and consumer banking in some Member States is still dominated by a small number of banks; whereas the profitability gap between EU and US banks has widened during … return on equity is 5 points lower than that of US banks’4; Added: whereas institutions deemed ‘too big to fail’ continue to pose systemic risks to the European financial system because of their size, complexity and interconnectedness; 4 De Vito, L. et al., Understanding the profitability gap between euro …

2. Amendment 2Rejected

   Paragraph 9

   Tabled by Philippe Lamberts · Verts/ALE

   9. Removed: Calls on the Commission to assess impediments to cross-border mergers as well as potential incentives for ring fencing; takes note that, according to a public statement by Andrea Enria, Chair of the ECB Supervisory Board, the banking sector is still, by and large, a collection of national banking sectors; notes that a more integrated EU banking sector could enhance banks’ ability to undertake strategic investments and foster the development of EU capital markets, while acknowledging that the diversity of banking business models in the euro area enhances the resilience of the financial system; notes Added: Notes the risks that ‘too big to fail’ institutions Removed: could entail, and notes that financial stability could be increased by a Added: entail, and calls for a structural reform of EU G-SIBs that addresses moral hazard risks Removed: highlights that cross-border consolidation without excessive concentration could increase the profitability of the EU banking sector, and potentially improve the current situation of reduced services offered and increased costs for citizens in many Member States; Added: and contributes to financial stability;

3. Amendment 3Rejected

   Paragraph 12 a (new)

   Tabled by Philippe Lamberts · Verts/ALE

   Added: 12a. Recalls that fossil fuel asset values are set to collapse; recalls that the collapse of fossil fuel asset values could trigger a major financial crisis; calls for higher capital charges to be set for fossil fuel investments, including by applying a risk weight of 1 250 % to new fossil fuel exposures and ensuring that such investments are fully equity funded;

4. Amendment 4Rejected

   Paragraph 25

   Tabled by Philippe Lamberts · Verts/ALE

   25. Removed: Welcomes Added: Notes the agreement reached at interinstitutional level to implement Basel III standards in the EU; Removed: underlines that the framework will deliver different levels of increase in prudential requirements depending on banks’ reliance on the use of internal models to calculate their risk-weights; highlights that the new rules have strengthened and better specified proportionality in banking supervision and will continue to increase financial stability in the EU; underlines the importance of a level playing field between jurisdictions; Added: calls for the co-legislators to reconsider the deviations from international prudential standards which they have introduced, given that new risks have emerged since the adoption of the Basel III framework; recalls that the specificities of EU banks were taken into account in the calibration of Basel capital requirements;