Maltese MEP Alfred Sant told The Economic and Monetary Committee of the European Parliament (ECON) that European medium sized banks from the small and not so small economies of the south require a different treatment from those of the north. Dr Sant was speaking during an exchange of views with Mrs Elke Konig, the Chair of the Single Resolution Board which has published its Work Programme for 2017. Reacting to Dr Sant’s comments, Mrs Konig said that the Single Resolution Board recognized that there are different banking business models across the EU. Moreover, she underlined that the SRB is very mindful not to treat all banks with “one size fits all” approach, but at the same time, she said, banks should be treated in a consistent manner according to EU rules.
The Single Resolution Board (SRB) is the new European Banking Union’s resolution authority. Its mission is to ensure the orderly resolution of failing banks, with as little impact as possible on the real economy and public finances of the participating EU countries and others.
Dr Sant asked whether harmonized methodologies could negatively impact southern European banking models. “Applying resolution mechanisms that have been harmonised to such banks reflecting methods used elsewhere could further reduce their financial flexibility in their own relatively small environments, making them uncompetitive with the bigger northern banks.” remarked the Maltese MEP.
Dr Sant told Mrs Konig that she was attaching significant scope for harmonisation. “Would you agree that this could develop along ‘one size fits all’ lines? If yes, what is being done to contain this potential problem? Indeed is there not the possibility overall that harmonised resolution procedures would serve to further promote the oligopolisation of banking systems on a European scale? Would we want this to happen?” asked Dr Sant.
In another intervention at ECON in a discussion on the eurozone Dr Sant said that the eurozone rules should be updated to reflect the changing economic conditions.
You may follow Dr Sant’s and Mrs Konig’s interventions on this link:
Maltese Version – IL-BANEK TA’ DAQS MEDJU JIĦTIĠILHOM TRATTAMENT DIFFERENTI
Alfred Sant qal lill-Kumitat Ekonomiku u Monetarju tal-Parlament Ewropew (ECON) li l-banek ta’ daqs medju mill-ekonomiji żgħar u medji tal-Ewropa ta’ isfel jixirqilhom trattament differenti mill-banek tat-Tramuntana tal-Ewropa. Dr Sant kien qed jitkellem waqt sessjoni ta’ skambju ta’ ideat ma’ Elke Konig, il-Presidenta tas-Single Resolution Board, l-Awtoritá inkarigata milli tiżgura li banek Ewropej li jkollhom diffikultajiet finanzjarji jiġu sorveljati tajjeb. B’reazzjoni għall-kummenti ta’ Dr Sant, Konig saħqet li huma jagħmlu minn kollox biex ma japplikawx ir-regoli bl-istess mod għal kulħadd, imma mbagħad qalet ukoll li ma tantx hemm differenza bejn banek tan-nord u dawk tas-sud u li għandhom jiġu ttrattati b’mod konsistenti skond ir-regoli tal-UE.
Dr Sant staqsa jekk l-użu ta’ metodoloġiji armonizzati setgħux jaffettwaw il-mudell tal-banek fl-Ewropa ta’ isfel. Dwar l-importanza li Elke Konig qed tagħti lill-armonizzazzjoni f’das-settur, Dr Sant staqsiha jekk taqbilx li dan jiżviluppa fuq linja ta’ ‘one-size-fits-all’.
“Din l-armonizzazzjoni tista’ tnaqqas il-flessibilita` finanzjarja tal-banek żgħar u medji fl-Ewropa ta’ isfel fl-ambjent relattivament żgħir tagħhom bil-periklu li ma jibqgħux kompetittivi mal-banek kbar tal-Ewropa ta’ Fuq.” irrimarka l-Ewroparlamentari Malti.
F’intervent ieħor f’laqgħa oħra tal-ECON dwar iż-żona ewro, Dr Sant qal li r-regoli taż-żona ewro għandhom jiġu aġġornati biex jirriefelttu l-kundizzjonijiet ekonomiċi li dejjem jinbidlu.
Tista’ ssegwi l-interventi ta’ Dr Sant and Mrs Konig fuq din il-link:
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