Structural reforms of EU banks and transparency in shadow banking
ECOS-V/055
Structural reforms of EU banks and transparency in shadow banking
underlining the concerns of local and regional authorities in the field of financial regulation, specifically with regards to structural reforms of banks and shadow banking
*This opinion unfortunately had a limited impact. Several elements may explain this, including the fact that the rapporteur lost his mandate immediately after its adoption and could this not conduct any follow-up work, the fact that this is a policy field where the role of LRAs is rather limited, and lastly the fact that the legislative procedure for the key regulation on structural reforms of banks has been stalled since the rejection in the EP's ECON Committee of the rapporteur's draft report on 26/05/2015.
THE COMMITTEE OF THE REGIONS
welcomes the Commission's proposals for regulations on Structural measures improving the resilience of EU credit institutions and on Reporting and transparency of securities financing transactions;
regrets however that the scope and ambition of the suggestions made by the High-level Expert Group appointed by the Commission in February 2012 have been significantly reduced;
reiterates the importance of credit for financing public investment by local and regional authorities in projects of general interest such as infrastructure, research and education; observes that these investments represent a substantial share of public spending and are vital for the growth and well-being of citizens;
draws attention to the fact that some local and regional authorities issue financial instruments such as bonds as a means to finance their activities and policies;
agrees with the objective of strengthening banks' stability and resilience by banning proprietary trading and providing the capacity to separate risky trading activities;
welcomes the proposed obligation to report all transactions to a common database and considers that this will help to improve the monitoring of the risks and exposures associated with SFTs;
suggests legislative amendments to several articles of the proposal on Structural measures improving the resilience of EU credit institutions.
welcomes the Commission's proposals for regulations on Structural measures improving the resilience of EU credit institutions and on Reporting and transparency of securities financing transactions;
regrets however that the scope and ambition of the suggestions made by the High-level Expert Group appointed by the Commission in February 2012 have been significantly reduced;
reiterates the importance of credit for financing public investment by local and regional authorities in projects of general interest such as infrastructure, research and education; observes that these investments represent a substantial share of public spending and are vital for the growth and well-being of citizens;
draws attention to the fact that some local and regional authorities issue financial instruments such as bonds as a means to finance their activities and policies;
agrees with the objective of strengthening banks' stability and resilience by banning proprietary trading and providing the capacity to separate risky trading activities;
welcomes the proposed obligation to report all transactions to a common database and considers that this will help to improve the monitoring of the risks and exposures associated with SFTs;
suggests legislative amendments to several articles of the proposal on Structural measures improving the resilience of EU credit institutions.
