Gunnar Hökmark (EPP, Sweden) has submitted to his colleagues at the economic and monetary affairs committee of the European Parliament his draft report on the proposed directive modifying the hierarchy of creditors called upon to make a contribution in the event of a bank resolution.
This text, of which EUROPE has had sight, approves the introduction of a new category of assets made up of senior but non-preferential bank receivables. It is close to the position of the Council of the EU reached by the European finance ministers in mid-June (see EUROPE 11810). However, it suggests a shorter transposition time for the future directive, of 12 months rather than 18.
We have stated, with greater clarity than the member states, that banks which have already raised the 'bail-inable instruments' on the basis of the national legislation in force could do so, Hökmark told EUROPE on Thursday 29 June.
Next Thursday, the coordinators in Parliament will decide whether to start the 'fast-track' procedure to deliberate quickly and to separate the text from the legislative package of November 2016 aiming to reduce financial risks. This procedure has been called for by the S&D and ALDE groups, but the EPP is not in favour as Germany has not yet given its approval to the Council. If it is used, a political agreement will be possible after the summer break, a European source told us.
Pervenche Berès (S&D, France) said that moving forward on the revision of the 'BRRD' directive via this dossier would make it possible to tackle the question of the contributions called for by holders of 'senior' debt in the event of a bank bail-in. This is not expected to happen in the liquidation process of the two Venetian banks Banca Popolare di Vicenza and Veneto Banca (see EUROPE 11817). (Original version in French by Mathieu Bion)