Changes between two versions
What changed between the plenary report and the adopted text
Changes to the text itself, in document order. Cover page, citations and punctuation-only edits are left out; they are under “Every difference”.
The changes · 7
Change 1
Changed:K. whereas the banking sector faces risks following the pandemic and the invasion, particularly in relation to asset quality deterioration; whereas although the non-performing loan (NPL) ratio decreased to 2.242,24 % in the first quarter of 2023, and has steadily declined since the end of the Great Recession, further reduction is needed;
Change 2
Changed:RR. whereas the completion of the Capital Markets Union (CMU) requires the establishment of common rules and effective tools to reduce internal market fragmentation and facilitate access to alternative financing;
Change 3
Changed:5. Asks the Commission to retain the completion of the Banking Union and the Capital Markets Union as key priorities for the remainder of its current mandate and for its next mandate; highlights that both projects: – offer households and SMEs, which are still largely reliant on bank credit, broader access to funding, – foster investments and job creation, – support the European economy – increase financial stability – reduce the impact of economic downturns – fund the digital transition and the transition to a sustainable economy, and – unlock the EU’s growth potential;
Change 4
Removed:6. Takes note of the EBA’s statement of 13 July 2023 stating that the EU/EEA banking sector shows rising profitability, but asset quality and profitability related risks are looming; takes note of recent short-term increases in the profitability of EU banks (annualised return on equity rose to 10.04 % in the second quarter of 2023, while in the same period of 2022 it was 7.59 %, reaching its highest level in 14 years), but warns that these need to be sustainable to ensure long-term competitiveness;
Added:– offer households and SMEs, which are still largely reliant on bank credit, broader access to funding,
Added:– foster investments and job creation,
Added:– support the European economy,
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Added:– increase financial stability,
Added:– reduce the impact of economic downturns,
Added:– fund the digital transition and the transition to a sustainable economy, and
Added:– unlock the EU’s growth potential;
Added:6. Takes note of the EBA’s statement of 13 July 2023 stating that the EU/EEA banking sector shows rising profitability, but asset quality and profitability related risks are looming; takes note of recent short-term increases in the profitability of EU banks (annualised return on equity rose to 10,04 % in the second quarter of 2023, while in the same period of 2022 it was 7,59 %, reaching its highest level in 14 years), but warns that these need to be sustainable to ensure long-term competitiveness;
3 more changes
Change 5
Changed:18. Notes that the Common Equity Tier 1 ratio increased in the second quarter of 2023 to 15.7215,72 % (up from 14.9614,96 % in the second quarter of 2022); regrets that the liquidity coverage ratio fell to 158.00158,00 % in the second quarter of 2023 (down from 164.36164,36 % in the second quarter of 2022);
Change 6
Changed:4545. Calls for institutional protection schemes to be taken into account under any EDIS, in particular their risk-mitigating effect, while preserving the level playing field within the Single Market;
Change 7
Changed:4646. Recalls that one of the main objectives of the Banking Union is to break the link between bank and sovereign risks; notes that banks’ exposures to domestic sovereign debt remain high in the Banking Union; shares the EBA’s concern that sovereign exposures are material for EU banks and could become a source of potential vulnerability; emphasises that the issue of regulatory treatment of sovereign exposures must be consistent with international standards, and calls on the Commission to take this into account when addressing in any future proposals on this issue;