Reforming the structure of the EU banking sector:

Type: News   Reference: 91653   Duration: 00:02:24  Lieu: Brussels, Belgium - European Parliament
End production: 25/02/2013   First transmission: 25/02/2013
- extracts from the report by Arlene McCARTHY (S&D, UK) EP Committee on Economic and Monetary Affairs Today is the first exchange of views on the report of Ms Mc CARTHY on the aspects how to reform the structure of the EU banking sector.

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TIME DESCRIPTION DURATION
00:00:00 Title 00:00:05
00:00:05 Exterior shot of the European Parliament, Brussels, Belgium (1 shot) 00:00:05
00:00:10 SOUNDBITE (English): Arlene McCARTHY (S&D, UK), rapporteur: The group concluded that the only way to restore public trust and confidence and to ensure that tax payers no longer provide an implicit or explicit subsidy to this sector was to the mandatory separation of retail investment activities. 00:00:13
00:00:23 SOUNDBITE (English): Arlene McCARTHY (S&D, UK), rapporteur: We need to establish a stable and resilient banking system in which the possibility for bank ruins is limited and credit to the real economy is efficiently allocated. We need to prevent public money is being used to cover private losses, we need limit the miss-allocation of financial and human resources away from non bank sectors and the economy. We need to look in limiting that banks and incentives and ability to take excessive risks within ensured deposits. And we need to reduce the inter-connectiveness between banks and the shadow banking systems and tackling banks that are too big to fail. 00:00:35
00:00:58 SOUNDBITE (English): Arlene McCARTHY (S&D, UK), rapporteur: The high risk culture of investment and the fact that banking infiltrated and contaminated retail banking makes clear that we do need to stop the riskier parts infecting the essential elements of banking namely deposit taking and loan making. The crisis demonstrated that the culture of losses on risky trading portfolios did in danger depositors and borrowers, but additionally in the 'Liikanen proposals' we need to reflect on the issue of compensation. We continue to have a culture of short termism, pre-crisis, the profits seeking, the risk taking and the gambling of big bonuses led to large to large incentives. So need to go further in the government structure, building on the CRD 3 and CRD 4 proposals and it might be that we need to look more around the issues of deferrals, long term deferrals and linking them perhaps not to economic cycle, but to the credit cycle. (CRD III and IV: requirements on the disclosure of remuneration) 00:01:03
00:02:01 cut away shots, (7 shots) 00:00:23
00:02:24 END 00:00:00
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