Brussels, 08/02/2016 (Agence Europe) - At an event to mark the fifth anniversary of the European Banking Authority in London on Friday 5 February, the Commissioner for Financial Services, Jonathan Hill, gave an overview of European work to reduce financial risks, which was launched in parallel to work on the completion of banking union in the eurozone.
In addition to the full implementation of the legislation in force ('bank recovery and resolution' and 'deposit guarantee'), the Commissioner referred to the revision of the “national options and discretions” contained in the banking prudential rules. Although these regulatory differences do allow account to be taken of the national specifics, the “supervisors need to be able to compare apples with apples”, he said. The Commission will also consult on the “key differences between insolvency and early-restructuring regimes across the EU”. And, Hill added, we will present a legislative initiative to tackle the “obstacles to the free movement of capital”.
At the Council, a working group has been set in place to discuss the reduction of financial risks and the introduction of an European deposit insurance scheme (see EUROPE 11448).
In the framework of the revision of the banking prudential rules (CRDIV-CRR legislative package), the Commissioner called for the transparency requirements to be simplified, to bring them into line with the size and risk profile of banks. “I would like to adopt a more proportionate approach towards smaller banks”, Hill commented. The Commission will also look into the possibility of reducing own-funds requirements in order to boost long-term investment in infrastructure.
In the financial field, the 'Juncker' Commission's mandate is to regulate less but better. “This year we will propose 80% fewer laws than was usual each year under the last Commission. And we are reviewing two and a half times as much legislation as in previous years to check whether it is working as intended”, Hill said.
The host of the conference, EBA president Andrea Enria, said that the European authority would focus its attention on the effects of the reforms stemming from the G20 (increasing the quantity and quality of bank capital, liquidity ratios) on the structure and economic model of bank groups. “I am not convinced by the arguments that the reforms (…) are excessively harsh and hampering the recovery of the EU economy”, he said, but acknowledged that they had become “fiendishly complex”. He went on to observe, in the light of recent proposals on a new relationship between the United Kingdom and the EU, that the “need for greater uniformity of rules might not be suitable for member states not participating in the Banking Union”. (Original version in French by Mathieu Bion)