Debate: Banking Union – annual report
Date: MONDAY, 10 JULY 2023
Speaker: Kira Marie Peter-Hansen
Country: Italy
Language: EN

First of all, the failure of three US banks reminded us of how important it is to implement a sound prudential framework, and the EP report stresses that the EU should fairly, timely and comprehensively implement the internationally agreed standards. The recent political agreement reached with the Council will allow for this timely implementation. The management of these failures also demonstrates the need to have a robust deposit insurance framework that fosters depositors’ confidence to avoid bank runs. Secondly, the Commission published its proposal to revise the EU crisis management framework for banks, and everyone agrees that the EU resolution framework contains some loopholes that we need to fix. The management of Credit Suisse’s failure also demonstrates the importance of having a credible resolution framework. Fifteen years after the great financial crisis, it is time to put an end to the ‘too big to fail’ issue. Obviously resolution aspects and deposit insurances go hand in hand, and I do hope that the co-legislators will now be able to agree on a comprehensive and coherent reform of the EU framework. I am particularly proud that Parliament reiterates its commitment to complete the Banking Union against this background, and I would like in this context to also thank all the shadow rapporteurs for their constructive contribution and for the smooth work to draft the report that I hope will be voted with a broad majority. This year’s annual report also considers the economic and social impact of the Russian aggression on Ukraine and calls on competent authorities to carefully monitor ongoing developments. The report also acknowledges the decreasing trends of non-performing loans in bank balance sheets, while stressing that risk reduction in bank balance sheets should continue. So far, the progressive withdrawal of the public support measures adopted during the pandemic, as well as the rising interest rates environment, have not led to an increase of non-performing loans in bank balance sheets. However, our report stresses that we should continue to closely monitor the situation and continue the progress made in the reduction of risks in the balance sheets. The report also acknowledges the banking sector’s role in financing the green transition. There is a clear recognition by Parliament that climate change poses a threat to financial stability and it is now time that the financial and prudential framework fully embeds this reality. Our report also deplores the lack of gender balance in top management positions, both in banks and in EU financial institutions. Gender—balanced boards are not only a matter of social justice: numerous studies have shown that the gender balance on boards and the workforce brings both societal and economic returns. All in all, I truly believe that we have achieved an ambitious report which advocates for the deepening of our economic integration and the completion of the Banking Union. And finally, I will switch into Danish. For til sidst vil jeg gerne appellere til mit eget land, Danmark, om at tiltræde bankunionen og dermed slutte flere års nøleri. Ved at tiltræde bankunionen vil Danmark både styrke sin egen finansielle stabilitet og det europæiske samarbejde inden for den finansielle sektor. Et dansk medlemskab vil også give os langt mere indflydelse på EU-lovgivning, der påvirker den danske finanssektor. Fordelene ved et dansk medlemskab af bankunionen er veldokumenteret. Så er det bare om at komme i gang.