Financial services & capital markets > Financial supervision & credit rating agencies
Another step in the finalisation of the Banking Union’s architecture: publication of Single Resolution Mechanism (SRM) Regulation
Today, the Regulation establishing a Single Resolution Mechanism (SRM) for the Banking Union has been published in the Official Journal of the EU, only one year after the European Commission presented its proposal. The Single Resolution Mechanism will allow for the timely and effective resolution of cross border and domestic banks, over a weekend if necessary. The Regulation will enter into force on 19 August.
Vice-President Barnier welcomes Court of Auditors’ special report: “European banking supervision taking shape – EBA and its changing context”
“I believe the European Banking Authority’s role in the overall supervisory architecture is crucial. (...) While the establishment of the Banking Union (...) will affect the functioning of the EBA, it does not call into question its existence.” Statement by Vice-President Barnier.
Public consultation on the contributions of credit institutions to resolution financing arrangements
The European Commission launched today a consultation on the contributions of credit institutions to resolution financing arrangements under the Bank Recovery and Resolution Directive and the Single Resolution Mechanism. Input is requested on key elements related to the calculation of contributions of individual credit institutions to the resolution funds.
Another step in the implementation of the bank reform: publication of two key pieces of the Single Rulebook for banks
Today, the Directive on the Recovery and Resolution of Credit Institutions and Investment Firms (BRRD) and the recast Directive on Deposit Guarantee Schemes (DGS) have been published in the EU Official Journal. The BRRD provides a complete framework for the crisis management of banks, while the DGS Directive strengthens the protection of citizens’ deposits in case of bank failures.
“We have seen an unprecedented sequence of financial, economic, fiscal and social crises, which has highlighted clearly the limits of a having a primarily national response. (...) So we needed to work together, at European level, and this is what we have been doing since 2010, with a lot of energy and, I believe, positive results”. Speech by Commissioner Barnier at his hearing before the Finance Committee of the French Senate.
Commissioner Barnier welcomes the Signature of the intergovernmental Agreement (IGA) on the Single Resolution Fund
Today, 26 Member States have signed the Agreement on the transfer and mutualisation of contributions to the Single Resolution Fund (SRF). This is an important signal of the commitment of all parties, including those which do not yet participate in the single currency, to make the banking union a success.
"Europe's financial markets are too interlinked to be dealt with nationally. (…) So we need common rules and regulatory convergence, we need the EU. (…) The Banking Union is probably our biggest project since the euro itself." Speech by Commissioner Barnier at the Frankfurt Finance Summit.
The Commission adopted today a report addressed to the European Parliament and the Council on the feasibility of a network of smaller credit rating agencies in the EU.
The European Banking Authority (EBA) publishes key components of the common methodology for the 2014 EU-wide stress test
The EBA has delivered a robust stress test methodology and a tough adverse scenario. The purpose of the exercise is to identify any remaining vulnerabilities in the EU banking sector in order to make it more resilient and to provide a high level of transparency on EU banks’ exposures.
“The EU has delivered. Thanks to the assiduous work of the co-legislators, we have gone from a skeleton Banking Union to the final framework in less than two years”. Statement by Commissioner Barnier after the vote of the European Parliament on Commission’s proposals for completing the banking union (Single Resolution Mechanism, Bank Recovery and Resolution Directive, and Deposit Guarantee Schemes Directive).
Finalising the Banking Union: European Parliament backs Commission’s proposals (Single Resolution Mechanism, Bank Recovery and Resolution Directive, and Deposit Guarantee Schemes Directive)
"The EU has lived up to its commitments. Thanks to the assiduous work of the co-legislators, we have turned the idea of a Banking Union into reality in less than two years".
European Parliament and Council back Commission’s proposal for a Single Resolution Mechanism: a major step towards completing the banking union
“Today’s compromise allows us to complete the architecture of the banking union for the eurozone. (...) Together with the reforms to the financial sector for all 28 countries, the completed banking union will put an end to the era of massive bailouts. It will further contribute to the return to financial stability thus creating the right conditions for the financial sector to once again lend to the real economy which is essential to consolidate the economic recovery and to create jobs”. Statement by President Barroso and Commissioner Barnier.
European Parliament and Council back Commission proposal on right of citizens to a basic bank account
“In today’s world, not having access to a basic bank account makes it difficult and more expensive to participate in everyday life – paying the electricity bill or receiving a salary for example. Today’s agreement brings us a step closer to finally giving all European citizens access to a basic bank account, enabling them to participate fully in society and take advantage of the benefits of the Single Market”. Statement by Commissioners Barnier and Mimica.
Structured dialogue at the Economic and Monetary Affairs Committee of the European Parliament: introductory remarks by Commissioner Barnier.
The Commission adopts nine Regulatory Technical Standards (RTSs) to implement the single rule book in banking
The European Commission has adopted a package of Regulatory Technical Standards (RTS) needed to implement important provisions of the Capital Requirements Regulation and Directive (CRR/CRD). The nine RTS adopted today define the ways in which competent authorities and market participants must handle disclosures linked to securitisation instruments, measure potential losses from derivative positions and counterparty failure, as well as specifying the types of instruments that can be used for paying bonuses.
“Today, we made progress on a number of elements (...) However, on the issue of ‘who pushes the button’, the Council decided not to change the balance of roles between the Council and Commission”. Statement by Commissioner Barnier following the Economic and Financial Affairs Council of 11.03.2014.
“Banking union depends on having its second pillar, the single resolution mechanism, in place”. Statement by Commissioner Barnier following the meeting of 10 March between ministers of finance and European Parliament representatives and introductory remarks at the ECOFIN Council of 11 March.
Commission adopts technical standards for the identification of material risk takers subject to the rules on remuneration in the Capital Requirement Directive (CRD IV)
The European Commission has today adopted Regulatory Technical Standards on criteria to identify categories of staff whose professional activities have a material impact on an institution’s risk profile. These standards supplement the requirements of the Capital Requirements Directive (CRD IV) and will ensure that the CRD rules on remuneration are applied consistently across the EU.
“Although the worst of the financial and economic crisis is behind us, we still have a social and political crisis. The time has come to set out a new vision for Europe, to deepen the integration of the euro area, relaunch the co-ownership of the single market, invest jointly in our future, and give Europe the means to really count on the world stage.”. Speech by Commissioner Barnier at the 12th annual Financial Services Conference.
“We can (...) certainly improve the decision-making processes that are too complex and too heavy under the current compromise”. Intervention by Commissioner Barnier at the ECOFIN (Economic and Financial Affairs) Council.
Directive on criminal sanctions for market abuse: Vice-President Reding and Commissioner Barnier welcome the vote by the European Parliament
“Today the European Union is sending a clear signal: there must be zero tolerance for manipulators in our financial markets”. Statement by Vice-President Reding and Commissioner Barnier.
The European Commission has proposed new rules to stop the biggest and most complex banks from engaging in the risky activity of proprietary trading. The new rules would also give supervisors the power to require those banks to separate certain potentially risky trading activities from their deposit-taking business. The Commission has also adopted accompanying measures aimed at increasing transparency of certain transactions in the shadow banking sector. “Today’s proposals are the final cogs in the wheel to complete the regulatory overhaul of the European banking system” said Commissioner Barnier. “The proposed measures will further strengthen financial stability and ensure taxpayers don’t end up paying for the mistakes of banks”.
Commissioner Barnier explains his new plan for banking regulation. Interview by S. Wettach, WirtschaftsWoche
“Today is a momentous day for banking union. A memorable day for Europe’s financial sector. (...) Taxpayers will no longer foot the bill when banks make mistakes. We are ending the era of massive bail-outs”. Commissioner Barnier’s remarks at the ECOFIN Council press conference.
Commissioner Barnier's first intervention on the single resolution mechanism during the ECOFIN meeting
“The proposals of the Presidency form a very good basis for further work and should give us the elements we need to reach an agreement today (...) We have some concerns regarding the credibility of the system. It will be the result of a negotiation but it must remain effective and understandable”. Speech by Commissioner Barnier at the ECOFIN Council.
Commissioner Barnier welcomes agreement between the European Parliament and Member States on Deposit Guarantee Schemes
“Just a few days after the agreement on bank recovery and resolution, we are taking another important step towards completing the single rulebook on crisis management for credit institutions in the EU”. Statement by Commissioner Barnier.
Appointment of Danièle Nouy as first Chairperson of the Supervisory Board of the Single Supervisory Mechanism: statement by Commissioner Barnier
“As Chair of the Supervisory Board of the SSM, Danièle Nouy will play a central role in the banking union. She is an excellent choice for the tough job ahead”. Statement by Commissioner Barnier.
“I welcome the trilogue agreement reached tonight between the European Parliament and EU Member States on the Bank Recovery and Resolution Directive. This is a fundamental step towards the completion of the Banking Union”. Statement by Commissioner Barnier.
ECOFIN Council on the Single Resolution Mechanism package, the Bank Recovery and Resolution Directive and the Deposit guarantee schemes Directive
“We have a mandate in order to be able to go forward in the key trilogues on the Bank Recovery and Resolution Directive and the Deposit guarantee schemes Directive. I hope that with this mandate, and thanks to the excellent work of the rapporteurs, we can come to a final compromise in the next few days”. Comments by Commissioner Barnier following the ECOFIN Council meeting.
“Today, we have made real progress on the second pillar of banking union, the Single Resolution Mechanism. (...) Reaching an agreement in 5 weeks is only possible if all Member States make compromises”. Remarks by Commissioner Barnier following the ECOFIN Council.
Finance ministers will talk today on the Single Resolution Mechanism (SRM) at their Council meeting. “A compromise can be reached before the end of the year”, Commissioner Michel Barnier said in an interview with Europolitics. Barnier added that a vast majority of States had backed him on the key elements of his proposal. Interview by Manon Malhère, Europolitics.
"Banks need to regain their ability to fully engage with their customers, by focusing again on the heart of their business: financing the real economy and taking on the risks inherent in this task." Speech by Commissioner Barnier at the European Savings and Retail Banking Group Conference.
Council gives final approval for the Single Supervisory Mechanism, the first pillar of the Banking Union
“This is a momentous step: the start of a new era for the supervision of Eurozone banks (...) But better supervision is not enough. A banking union also requires action to restructure non-viable banks when necessary. That is why the supervisory system needs to be complemented by an integrated European resolution system”. Statement by President Barroso and Commissioner Barnier.
Commissioner Barnier on the Banking Union in the eurozone and Franco-German relationships. Interview by Ruth Berschens, Handelsblatt.
“I am extremely pleased that the European Parliament voted today to set up the Single Supervisory Mechanism, the first leg of the Banking Union”. Statement by President Barroso and Commissioner Barnier following the European Parliament’s vote.
The Commission has today adopted a communication on shadow banking and proposed new rules for money market funds (MMFs). “We have regulated banks and markets comprehensively. We now need to address the risks posed by the shadow banking system” said Commissioner Barnier.
The European Commission has today made a proposal for a Single Resolution Mechanism for the Banking Union. “We need a system which allows banks to be resolved quickly, efficiently, avoiding doubts on the impact on public finances and with rules that create certainty in the market. That is the point of today’s proposal for a Single Resolution Mechanism” Commissionner Barnier said.
"Banking union marks the starting point of a new ambition for Europe, one that consists of finally building the economic equivalent of monetary union." Speech by Commissioner Barnier at the Palazzo Farnese in Rome.
Bank Recovery and Resolution Directive: Statement of Commissioner Barnier following agreement in ECOFIN Council
“I am very pleased that finance ministers of the Member States have managed a few minutes ago to reach broad political agreement on the future rules for how to restructure and resolve failing banks”. Statement by Commissioner Barnier.
“Today we have focused primarily on the financing of bank resolution. This is a very complex subject. With the help of the Irish Presidency, we have made considerable progress – but not enough to come to an agreement tonight”. Statement by Commissioner Barnier following the ECOFIN Council of 21/06/2013.
As of 20 June, credit rating agencies (CRAs) will have to follow stricter rules which will make them more accountable for their actions. The new regulatory package, which reinforces the existing rules on credit rating agencies, consists of a Regulation and a Directive.
“New capital requirements, supervision and resolution will bring back financial stability. But this is not sufficient to restore what Europe needs most: innovation, competitive industries, modern infrastructures and green growth. To achieve this, we need long-term investment”. Speech by Commissioner Barnier at the Economic Ideas Forum, Helsinki.
"One year ahead of the end of the term, it is the time to outline a first assessment of our joint action to face the financial crisis. This is also the time to define the priorities for the rest of the year ... ". Speech by Commissioner Barnier at the European Parliament's Committee on Economic and Monetary Affairs.
“The overall assessment of the authorities and the ESRB (European Systemic Risk Board), possible changes to their goals, and the link with Banking Union… The public consultation on these issues will be open until July 19. I strongly encourage you to take part”. Speech by Commissioner Barnier at the Public Hearing on Financial Supervision in the EU.
The consultation is open to all stakeholders and will run until 19 July 2013. The results will provide important information on the effectiveness and efficiency of the European Supervisory Authorities and the European System of Financial Supervision as a whole.
How science can help towards the creation of a banking union that will bring stability and growth to Europe
"Understanding complex phenomena, detecting failures, evaluating different forms of regulation, assessing the impact on the real economy: these four essential elements of scientific analysis are particularly relevant in the context of the creation of a banking union." Speech by Commissioner Barnier at the second conference on the role of science in financial stability in Bruges.
European Parliament’s approval of new European rules to impose stronger prudential requirements on banks
“This vote is a milestone since it consolidates the strides forward that we have made in creating a stronger banking system. We are setting up a body of unique rules, a Single Rulebook for all the banks in the single market with rules that are directly applicable in Member States without any possibility of regulatory arbitrage”. Statements by President Barroso and Commissioner Barnier.
Stronger prudential requirements on banks: Statement by Commissioner Barnier following the agreement on the new rules
“I welcome the final agreement reached last night on a package that sets stronger prudential requirements for banks, requiring them to keep sufficient capital reserves and liquidity (...). After the agreement on the Single Supervisory Mechanism two days ago, we are taking another fundamental step towards a genuine Banking Union, which will contribute to securing the stability of European banks and benefit our economies at large”. Statement by Commissioner Barnier.
Creation of the Single Supervisory Mechanism for banks within the eurozone: statement by Commissioner Barnier following the trilogue agreement
“I congratulate the European Parliament and the Council on reaching an agreement today on a crucial legislative package (...). This is a first fundamental step towards a real banking union which must restore confidence in the eurozone's banks and ensure the solidity and reliability of the banking sector”. Statement by Commissioner Barnier.
Revised rules on capital requirements for banks: Commissioner Barnier’s remarks during the press conference at the European Parliament
“It is my belief that we now have all the elements for an agreement on this text, which is essential for the financial stability of Europe (…) The new rules will force banks to hold more, and better capital. This will make them more able to weather economic shocks and crises.”.
"Economic forecasts released last Friday by the European Commission confirm a weak economic outlook in France and Europe. Even if some of the signs are encouraging, 2013 will remain a difficult year, with the EU showing only barely positive growth (+0.1%)."
“Building a banking union, protecting consumers of financial services and creating a global level playing field: these are the three key actions that will give Europe a stronger financial sector.” Speech by Commissioner Barnier at the 11th annual Financial Services Conference.
"I thank the European Parliament for their quick work and excellent cooperation in the area of the new legislative initiatives aimed at better managing and regulating credit rating agencies". Speech by Commissioner Barnier.
In the recent LIBOR scandal, serious concerns have been raised about the manipulation of benchmarks, which can result in significant losses to consumers and investors, or distort the real economy. European justice ministers meeting in the Council of the European Union have today reached agreement on the Commission’s proposals for a Directive on insider dealing and market manipulation that will criminalise such behaviour.
“I welcome the important agreement reached today on additional rules for credit rating agencies (CRAs) which aim to reduce the over-reliance on ratings, eradicate conflicts of interest, and establish a civil liability regime. (...) The EU has already adopted rules on CRAs. Today’s rules build further on the work that we have already done”.
"The solution to our problems is not less Europe, but more Europe. In particular, it is a more modern single market, better adapted to the new economic, technological and social conditions of our time." Speech by Commissioner Barnier during his visit to the Netherlands in the framework of the Single Market Week.
Final report by the European Banking Authority (EBA) on the recapitalisation of European banks: statement by Commissioner Barnier
"This final report by EBA on the bank recapitalisation exercise provides important details on the state of the European banking sector". Statement by Commissioner Barnier.
The Commission has today received the report prepared by the High-level Expert Group on reforming the structure of the EU banking sector. The Group chaired by Erkki Liikanen presented the main findings to Commissioner Barnier.
The Commission has presented proposals for a single European supervisory mechanism, a major step to a banking union. This new system, with the European Central Bank (ECB) at the core and involving national supervisors, will restore confidence in the supervision of all banks in the euro area. Commissioner Barnier said: "Banking supervision needs to become more effective in all European countries to make sure that single market rules are applied in a consistent manner. It will be the role of the ECB to make sure that banks in the euro area stick to sound financial practices. Our ultimate aim is to stop using taxpayers' money to bail out banks".
Who controls Europe’s banks? The introduction of a central banking supervision authority is regarded as a decisive step towards the rescue of the Euro currency. Süddeutsche Zeitung.
M. Barnier on the plans to reform banking supervision in the Euro zone. Interview by Beda Romano. Il Sole 24 Ore.
"Thank you for your mobilization! We need your support to reach our goal: no financial player, no financial product and no financial market should escape effective regulation and supervision". Michel Barnier on the Avaaz petition on banking reform.
"We need an integrated Financial Union with enhanced democratic control". Speech by Commissioner Barnier at the Peterson Institute for International Economics, Washington DC.
"Along with stronger capital requirements, the regulation of shadow banking and a framework for managing and preventing bank crises, we need to continue the debate on possible structural reforms to the banking sector". Speech by Commissioner Barnier at a Parliamentary debate.
"Our proposal on bank recovery and resolution is being finalised. This proposal is the final missing piece of the puzzle to implement the commitments agreed at international level by the G20 for reducing systemic risks in the banking sector. The new framework will be broad-ranging and will equip authorities with common and effective tools and powers to tackle bank crises at the earliest possible moment." Statement by Commissioner Michel Barnier.
"We need an integrated market. A stronger single market for financial services. For economic efficiency. For a good allocation of capital. And for investors to have a greater choice." Speech by Commissioner Barnier at the Eurofi High Level Seminar in Copenhagen.
The European Union is carrying out some ambitious initiatives in order to address the crises that we have faced, and continue to face. The steps we are taking towards a sound financial regulation, better governance and stronger, more sustainable growth are leading us in the right direction.
Commissioner Barnier appoints members of a High-level Expert Group on possible reforms to the structure of the EU banking sector
Commissioner Barnier has today appointed the members of the High-level Expert Group set to examine structural aspects of the EU's banking sector. The Group will present its final report to the Commission by the end of summer 2012.
"The EU must not hinder the City's energy. But I am sure it is in the City's interest, and the wider British interest, to play the European game." Speech by Commissioner Barnier in London.
"The meaning of the decisions taken by the European Commission, heads of state and government, is very clear. At the highest level, there is an unbreakable political determination to take all the necessary measures to overcome the current crisis". Speech by Commissioner Barnier at the conference "Restoring Confidence in Financial Markets", Tokyo.
Statement by Commissioner Barnier on the decision by Standard & Poor's to downgrade several countries in the euro area.
Consultation on the application of Directive 2007/44 EC as regards acquisitions and increase of holdings in the financial sector
Video interview with Commissioner Barnier on credit rating agencies. viEUws.
Despite the adoption of European legislation on credit rating agencies in 2009 and 2010, recent developments in the context of the euro debt crisis have shown our existing regulatory framework is not good enough. Today the European Commission has put forward proposals to toughen that framework further and deal with outstanding weaknesses.
Commissioner Barnier comes back to the question of the reform agenda of the banking sector, in particular the implementation of G20 commitments, banks recapitalization and interbank guarantees.
Commissioner Barnier details the reform package based on five principles: Supervision; Transparency; Stability; Responsibility; Protection. Speech at the Conference "The EU Financial Sector after the Storm", Vilnius, Lithuania.
To exit the real economy from the crisis, the EU and member states have responded with new common economic governance rules, along with more discipline, notably budgetary discipline. These measures are necessary, but insufficient. Only a resolute action on the causes of the financial crisis and a long-term vision will allow us to restore public confidence. Article by Commissioner Barnier, Revue de l'Union européenne.
According to Commissioner Barnier, national short-selling bans, coordinated by the newly created European Securities and Market Authority recently, demonstrated the need for an EU-wide regulation. Interview by Jim Brunsden, Bloomberg Brief.
Statement by Commissioners Barnier and Rehn following the publication by the European Banking Authority of the 2011 stress test results
The new European Securities and Markets Authority: helping enhance the resilience of financial markets
Celebrating in Paris the birth of the European Securities and Markets Authority (ESMA), Commissioner Barnier details the main challenges of the new authority.
"Before the crisis, rating agencies encouraged investors to take excessive risks (...) Now, they are probably doing the opposite." Commissioner Barnier about the credit rating agencies. Interview by Yann-Antony Noghes, La Tribune.
"We Europeans, and more particularly the Greeks, are living through serious political developments which risk calling into question policies which have been patiently constructed. It is my belief that the relevance of these policies is in no way undermined by the current difficulties". Commissioner Barnier spoke in Athens via two video messages at the Convention of the Federation of European Stock Exchanges and the Conference of the Federation of European Insurers.
Speech by Commissioner Barnier at the conference "Commodities and raw materials : challenges and policy responses"
The European Commission hosted the second of a series of annual conferences, jointly organised with the European Central Bank (ECB). This conference featured a number of top-level financial market participants, regulators, academics and political leaders who discussed the future of European financial markets in the wake of the establishment of the new supervisory architecture in Europe.
Speeches by Commissioner Barnier on the occasion of his visits to the European Banking Authority and the European Insurance and Occupational Pensions Authority.
European Parliament confirms the appointment of the new Chairmen to the three new European Supervisory Authorities
Following the vote in the European Parliament confirming the appointment of the three new Chairmen to the three new European Supervisory Bodies (Andrea Enria for the European Banking Authority, Steven Maijoor for the European Securities and Markets Authority and Gabriel Bernardino for the European Insurance and Occupational Pensions Authority), European Commissioner Michel Barnier said:
Commissioner Barnier about new rules for financial institutions, solidarity for the Euro and stress tests. Interview by C. Gammelin and D. Stawski. © Süddeutsche Zeitung GmbH, Munich. Courtesy of http://www.sz-content.de (Süddeutsche Zeitung Content)
Following the launch of the three new European Supervisory Authorities on 1st January 2011, the Commission now proposes to make targeted changes to legislation in the area of insurance and securities regulation to ensure that the new Authorities can work effectively.
Today, three new European Authorities for the supervision of financial activities – for banks, markets and insurances and pensions respectively - start their work a few days after the launch of the European Systemic Risk Board.
Financial reform: the European Commission sets out ways to strenghten sanctions for violation of EU rules and consults stakeholders on the review of MiFID
The European Commission adopted today a Communication setting out possible ways to reinforce sanctioning regimes in the EU’s financial services sector. It also launched a consultation on the review of the Markets in Financial Instruments Directive (MiFID).
On his second official visit to the US, Commisioner Barnier delivered a speech at the Securities Industry and Financial Markets Association (SIMFA)
"Financial supervision package", "the fight against systemic risks"... To understand the final set of rules adopted yesterday by the European Parliament, Derniers Nouvelles d'Alsace talked with Commissioner Barnier. Interview by Anne-Camille Beckelynck Anne-Camille Beckelynck, Dernières Nouvelles d'Alsace.
At the beginning of next year, Europe will have a supervision model tailored to its needs and better capable to prevent future crises. This is the result of today's 'yes' vote at the European Parliament on the supervision package proposed by the Commission.
"We need markets, and we need financial institutions that create value-added, but everyone has to be able to answer for what they are doing. People taking crazy risks linked to crazy rewards have to be brought back to their senses". Interview by Ambrose Evans-Pritchard, Telegraph.
Statement of Commissioner Barnier following the ECOFIN Council of September 7th 2010.
Commissioner Barnier welcomes the outcome of the trialogue to beef up oversight on financial institutions in Europe
"This afternoon, we have reached a crucial milestone – we have reached a political consensus on the creation of European financial supervisory framework."
As part of its work creating a safer and sounder financial system, the European Commission has proposed to amend existing European rules on the supervision of financial conglomerates. Financial conglomerates are financial groups that are usually active in more than one country and operate in both the insurance and banking businesses.
Press conference following the Economic and Financial Affairs Council.