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 🧵👇

🐦🔗: n.respublicae.eu/jonasfernande

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

🐦🔗: n.respublicae.eu/jonasfernande

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

🐦🔗: n.respublicae.eu/jonasfernande

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

🐦🔗: n.respublicae.eu/jonasfernande

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

🐦🔗: n.respublicae.eu/jonasfernande

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

🐦🔗: n.respublicae.eu/jonasfernande

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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

🐦🔗: n.respublicae.eu/jonasfernande

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