Alfred Sant warns against reducing southern European banks’ financial

Former Prime Miniser and Maltese MEP said one-size-fits all approach on small and medium sized banks operating in the south of Europe could reduce their financial flexibility and become uncompetitive with the larger banks in the north of Europe. Dr Sant made these comments after voting in favour of a resolution on the appointment of Mr Andrea Enria as the new Chair of the Supervisory Board within the European Central Bank at the European Parliament.
Dr Sant said all banks need to be treated equally with the overall goal of improving financial integration in the Eurozone and reducing the dangers of excessive risk taking in the future.
Dr Sant said Mr Enria’s outstanding experience in banking and financial regulation and supervision, as well as his independence will contribute to the successful continuity of the Single Supervisory Mechanism.
“However, in doing so, Mr Enria has to make sure that the new rules introduced with the Banking Union take into full account the changing operating costs of small and medium banks, especially in the southern economies of the Union, while keeping at bay any disproportionate rise in compliance costs. Harmonised rules are crucial to the architecture of that banking union. But this does not mean that a blind one-size fits-all approach would make sense. It could be detrimental to medium sized banks from the smaller economies by reducing their financial flexibility within their own relatively small environments, making them uncompetitive at home with the bigger northern banks. Unfortunately, regulatory and supervisory trends that go in this direction have already emerged.”
Mr Enria will hold the position for a period of five years, starting from 1 January 2019. As a supervisor, the European Central Bank has the authority to carry out inspections to check banks’ compliance with EU rules, demand banks set aside additional capital to mitigate risks and can even withdraw banking licences.

Maltese Version – ALFRED SANT JGĦID LI L-FLESSIBILITA` TAL-BANEK FIS-SUD TAL-EWROPA MA GĦANDHIEX TITNAQQAR

Alfred Sant qal li l-banek żgħar u medji li joperaw fis-sud tal-Ewropa jistgħu jitilfu l-flessibilita` finanzjarja u ma jibqgħux kompetittivi ħdejn il-banek il-kbar tan-nord tal-Ewropa jekk tkun addottata l-politika ta’ one-size-fits-all fil-politika bankarja fiż-żona ewro. Il-Kap tad-Delegazzjoni Laburista fil-Parlament Ewropew kien qed jikkummenta wara li vvota favur ir-riżoluzzjoni tal-ħatra ta’ Andrea Enria bħala ċ-Chairperson il-ġdid tal-Bord ta’ Superviżjoni fi ħdan il-Bank Ċentrali Ewropew.
Dr Sant qal li l-banek kollha għandhom ikunu trattati b’mod ugwali u bl-għan aħħari li titjieb l-integrazzjoni finanzjarja taż-żona ewro u jittieħdu inqas riskji eċċessivi fil-futur.
L-MEP Malti qal li l-esperjenza kbira ta’ Andrea Enria fil-qasam bankarju, finanzjarju u regolatorju, kif ukoll l-indipendenza tiegħu se jikkontribwixxu għas-suċċess fil-kontinwita` tas-Single Supervisory Mechanism.
“Iżda, Andrea Enria irid jaċċerta ruħu li r-regoli l-ġodda introdotti bl-Għaqda Bankarja jikkunsidraw it-tibdil tal-ispejjeż tal-operat tal-banek żgħar u medji, speċjalment fl-ekonomiji tas-Sud tal-Unjoni, filwaqt li titrażżan kull żieda sproporzjonata fl-ispejjeż għal konformita`. Regoli armonizzati huma qafas kruċjali tal-Għaqda Bankarja. Iżda dan ma jfissirx li metodu ta’ ‘one-size-fits all’ jekk jittieħed bl-għama se jagħmel sens. Jista’ jkun ta’ tfixkil għal banek ta’ daqs medju li jinsabu fl-ekonomiji tal-pajjiżi ż-żgħar billi jnaqqsilhom il-flessibilita` finanzjarja fi ħdan l-ambjent, relattivament żgħir tagħhom. B’hekk ma jibqgħux kompetittivi fil-pajjiżi li fihom joperaw fil-konfront ta’ banek ħafna akbar minnhom fil-pajjiżi nordiċi tal-Ewropa. Sfortunatament, diġa` tfaċċa aġir regolatorju u ta’ superviżjoni li sejjer f’din id-direzzjoni.”
Andrea Enria se jokkupa l-kariga għal perijodu ta’ ħames snin, li jibda fl-1 ta’ Jannar 2019. Bħala superviżur, il-Bank Ċentrali Ewropew għandu l-awtorita` jwettaq spezzjonijiet biex jiċċekkja l-konformita` tal-banek mar-regoli tal-UE, u jordna lil banek biex iwarrbu aktar kapital biex jitnaqqsu r-riskji u jista’ wkoll jirtira l-liċenzji bankarji.