What changed between the draft committee report and the plenary report

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

15 unchanged paragraphs

on Banking Union – annual report 2024

(2024/2055(INI))

The European Parliament,

– having regard to its resolution of 16 January 2024 on Banking Union – annual report 2023,

– having regard to the Commission’s follow-up to Parliament’s resolution of 16 January 2024 on Banking Union – annual report 2023,

– having regard to document published by the European Central Bank (ECB) on 25 March 2024, entitled ‘Feedback on the input provided by the European Parliament as part of its resolution on Banking Union 2023’,

– having regard to the ECB’s 2023 Annual Report on supervisory activities, published in March 2024,

– having regard to the 2023 Annual Report of the Single Resolution Board (SRB), published on 28 June 2024,

– having regard to the adoption of the Anti-Money Laundering Directive (AMLD) and the Anti-Money Laundering Regulation (AMLR), and to the establishment of the Anti-Money Laundering Authority (AMLA),

– having regard to the implementation of the Basel III standards, namely to the adoption of amendments to the Capital Requirements Directive and to the Capital Requirements Regulation,

– having regard to the adoption of Commission Delegated Regulation (EU) 2024/2795 of 24 July 2024 amending Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to the date of application of the own funds requirements for market risk,

– having regard to its position at first reading of 24 April 2024 on the proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 806/2014 as regards early intervention measures, conditions for resolution and funding of resolution action,

– having regard to its position at first reading of 24 April 2024 on the proposal for a Directive of the European Parliament and of the Council amending Directive 2014/59/EU as regards early intervention measures, conditions for resolution and financing of resolution action,

– having regard to its position at first reading of 24 April 2024 on the proposal for a Directive of the European Parliament and of the Council amending Directive 2014/49/EU as regards the scope of deposit protection, use of deposit guarantee schemes funds, cross-border cooperation, and transparency,

– having regard to the report of its Committee on Economic and Monetary Affairs of 23 April 2024 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 806/2014 in order to establish a European Deposit Insurance Scheme,

Changed:– having regard to the Commission proposal of 14 March 2018 for a Directivedirective of the European Parliament and of the Council on credit servicers, credit purchasers and the recovery of collateral (COM(2018)0135),

7 unchanged paragraphs

– having regard to the Five Presidents’ Report of 22 June 2015 entitled ‘Completing Europe’s Economic and Monetary Union’,

– having regard to Enrico Letta’s report of 10 April 2024 entitled ‘Much more than a market – Speed, security, solidarity: empowering the Single Market to deliver a sustainable future and prosperity for all EU Citizens’,

– having regard to Mario Draghi’s report of 9 September 2024 entitled ‘The future of European competitiveness’,

– having regard to the Eurogroup statement of 11 March 2024 on the future of Capital Markets Union, and to the Eurogroup statement of 16 June 2022 on the future of the Banking Union and the Eurogroup follow-up thereto of 28 April 2023,

– having regard to the Basel Committee on Banking Supervision’s disclosure framework for banks’ cryptoasset exposures and to the targeted amendments to its prudential standard on banks’ exposures to cryptoassets, both published on 17 July 2024,

– having regard to the Basel Committee on Banking Supervision’s core principles for effective banking supervision, published on 25 April 2024,

– having regard to the ECB’s Financial Stability Review of May 2024,

Added:– having regard to the ECB Occasional Paper No 328 of 2023 entitled ‘The Road to Paris: stress testing the transition towards a net-zero economy’,

Added:– having regard to the Financial Stability Board publication of 9 November 2015 entitled ‘Principles on Loss-absorbing and Recapitalisation Capacity of G-SIBs in Resolution’,

Added:– having regard to the Financial Stability Board report of 10 October 2023 entitled ‘2023 Bank Failures – Preliminary lessons learnt for resolution’,

7 unchanged paragraphs

– having regard to Peterson Institute for International Economics Working Paper No 24-15 of 25 June 2024 entitled ‘Europe’s banking union at ten: unfinished yet transformative’,

– having regard to the Single Supervisory Mechanism supervisory priorities for 2024-2026, published in December 2023,

– having regard to the SRB’s biannual reporting note to the Eurogroup of 13 May 2024,

– having regard to the outcome of the 2023 EU-wide transparency exercise of the European Banking Authority, published on 28 July 2023,

– having regard to Special Report 12/2023 of the European Court of Auditors of 12 May 2023 entitled ‘EU supervision of banks’ credit risk – The ECB stepped up its efforts but more is needed to increase assurance that credit risk is properly managed and covered’,

– having regard to the statements by Claudia Buch, Chair of the Supervisory Board of the ECB, at the hearings conducted by Parliament’s Committee on Economic and Monetary Affairs on 21 March 2024 and 2 September 2024,

– having regard to the statements by Dominique Laboureix, Chair of the SRB, at the hearings conducted by Parliament’s Committee on Economic and Monetary Affairs on 21 March 2024 and 23 September 2024,

Added:– having regard to the European Banking Authority’s risk assessment reports of July 2024 and December 2024,

– having regard to its resolution of 14 March 2019 on gender balance in EU economic and monetary affairs nominations,

Added:– having regard to its resolution of 25 March 2021 on strengthening the international role of the euro,

– having regard to Rule 55 of its Rules of Procedure,

Changed:– having regard to the report of the Committee on Economic and Monetary Affairs (A10-0000/2024),(A10-0044/2025),

Change 1

Changed:A. whereas the Banking Union (BU) encompasses the Single Supervisory Mechanism, the Single Resolution Mechanism and high minimuma standardsEuropean indeposit theinsurance areathat ofis depositstill insurance;missing;

Change 2

Changed:B. whereas a completedthe BUmain wouldobjective improveof the competitivenessBU andis to safeguard the stability of the banking sector and consumerin choice,Europe and facilitateprevent accessthe need to financing;bail out banks at risk of failure with taxpayers’ money;

Change 3

Added:C. whereas a completed BU would be a positive development for citizens and the EU economy, as it would improve the competitiveness and stability of the banking sector, reduce systemic risk, improve supply and consumer choice and offer increased opportunities for cross-border banking that enhances access to financing for households and businesses, thereby reducing costs for banks’ customers, while ensuring that public funds are not used to bail out the banking sector; whereas the ‘too big to fail’ risk has not yet been fully addressed;

Added:D. whereas concluding the reform of the EU frameworks for bank crisis management and deposit insurance, focusing particularly on small and medium-sized banks, is fundamental in order to provide Europe’s banking sector with security, stability and resilience; whereas a complete BU with a true European deposit insurance scheme is a basic condition for ensuring that citizens trust European banks;

E. whereas fragmentation and the lack of cross-border consolidation of the EU banking sector is affecting its global competitiveness; whereas the profitability gap between EU and US banks has widened;

Change 4

Changed:D.F. whereas a strong and diversified banking sector is key to delivering economic growth, increasing the possibility of home ownership, fostering investment and job creation, financing small and medium-sized enterprises (SMEs) and start-ups and ensuring the transition to a green and digital economy;

Change 5

Added:G. whereas around 80 % of external financing for EU companies comes from banks, while only 20 % comes from the capital markets; whereas only 30 % of credit for US firms comes from banks, while 70 % is funded via capital markets, including corporate bond holdings and shares;

Added:H. whereas the EUR 356.1 billion in non-performing loans recorded at the 110 supervised institutions in 2024, compared with EUR 988.9 billion in non-performing loans recorded at the 102 supervised institutions in the second quarter of 2015, reflects a significant downward trajectory, leaving the total non-performing loan stock at 36 % of its 2015 level; whereas further efforts are required;

I. whereas in April 2024, it adopted its position on the review of the crisis management and deposit insurance framework;

J. whereas in April 2024, its Committee on Economic and Monetary Affairs adopted a report on the Commission’s proposal to establish a European deposit insurance scheme;

Change 6

Added:K. whereas financial institutions rely increasingly on the use of information and communications technology (ICT); whereas the digitalisation of finance provides key opportunities for the banking sector and has brought about significant technological advances in the EU banking sector through increased efficiency in the provision of banking services and a greater appetite for innovation; whereas it also poses challenges, including with regard to data protection, reputational risks, anti-money laundering and consumer protection concerns; whereas the EU banking sector must increase its cyber resilience to ensure that ICT systems can withstand various types of cyber security threats; whereas the ECB is currently studying the establishment of a digital euro;

Added:L. whereas EU banks have withstood the impact of Russian aggression; whereas they play a pivotal role in ensuring the ongoing implementation of and compliance with the sanctions imposed by the EU against Russia in response to the invasion; whereas further coordination is needed to avoid circumvention of sanctions;

Added:M. whereas climate change, environmental degradation and the transition to a low-carbon economy are factors to be taken into account when assessing the risks on banks’ balance sheets, as a source of risk potentially impacting investments across regions and sectors;

General considerations

Change 7

Removed:1. Asks the Commission to ensure that the completion of BU remains a key priority; highlights that this project offers households and SMEs access to broader funding, increases financial stability, reduces the impact of economic downturns, funds the transition to a green and digital economy and unlocks the EU’s growth potential;

Added:1. Acknowledges the progress made over the last 10 years through the establishment of the Single Supervisory Mechanism (SSM) and Single Resolution Mechanism (SRM); notes that the BU will not be completed without the establishment of its third pillar, the European deposit insurance scheme;

Removed:2. Notes that a more integrated BU would help to make the EU banking sector more resilient; notes that better cross-border integration of banking business would increase the potential for private risk sharing and ensure diversification in the EU banking market;

Added:2. Asks the Commission to ensure that the completion of the BU and the Capital Markets Union remains a key priority; highlights that these projects offer households and SMEs access to broader funding, reduce the high reliance on bank credit to foster investments and job creation, increase financial stability, reduce the impact of economic downturns, support competitiveness, give additional investment opportunities, fund the transition to a green and digital economy and unlock the EU’s growth potential; notes that the Commission is requested to take into consideration the specificities of the different banking models, while preserving a level playing field;

Removed:3. Regrets that EU banks’ ability to finance major investments is constrained by higher costs, smaller scale and lower profitability that is not sufficient to ensure their competitiveness;

Added:3. Notes the need to be prepared for episodes of banking stress that could potentially lead to bank runs such as those witnessed in some jurisdictions outside the EU in March 2023, and the need to ensure the stability of deposits;

Removed:4. Acknowledges that EU banks still operating in Russia have downsized their activity; calls on supervisory institutions to further assist those banks in pushing ahead with exiting the Russian market;