EU legislative banking package adopted by @EP_Economics! Green light to the amendments to the Capital Requirements Regulation and the Capital Requirements Directive. Next step: Trilogues 🇪🇺
@TheProgressives
Very happy with the green-lighted texts 🧵👇
🐦🔗: https://n.respublicae.eu/jonasfernandez/status/1617844494485028865
The European Parliament is committed to transposing the Basel III agreement as close as possible into EU legislation, while some specificities have been included. As rapporteur, I have managed to avoid the inclusion of further deviations, defended by other political groups. 2/7
🐦🔗: https://n.respublicae.eu/jonasfernandez/status/1617844496741597184
Large banks typically use internal models to calculate risk weights, whereas small banks use standardised approaches. The introduction of a so-called output floor will help to close this gap by capping the risk weight large banks can apply vis a vis internal models. 3/7
🐦🔗: https://n.respublicae.eu/jonasfernandez/status/1617844498486423557
Consequently, including a clear limitation of 4 years at the most to any potential extension of the transitional arrangement in the EP text -unlike those from the Commission and the Council -is a key element in the Capital Requirements Regulation adopted earlier today. 5/7
🐦🔗: https://n.respublicae.eu/jonasfernandez/status/1617844502642962439
The inclusion ESG considerations, in line with @TheProgressives principles of social justice and sustainability, is another point of which I am particularly satisfied as rapporteur. 6/7
🐦🔗: https://n.respublicae.eu/jonasfernandez/status/1617844504442339329
Banks shall adopt transitional plans to address ESG risk, paying particular attention to the EU objective of achieving climate neutrality by 2050. Besides, ESG considerations have been included in the calculation of collateral, increasing capital requirements 7/7
🐦🔗: https://n.respublicae.eu/jonasfernandez/status/1617844506258464771
Attempts by some members to permanently carve out certain asset classes from this requirement only work in service of large banks, and jeopardise financial stability as well EU’s credibility as a reliable negotiating partner in international fora. 4/7
🐦🔗: https://n.respublicae.eu/jonasfernandez/status/1617844500495478791