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

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

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