Financial services & capital markets > Risk management in financial institutions
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.
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.
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.
“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.
“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.
“Today you are being asked to give your opinion on a legislative package that is of major importance for Europe”. Speech by Commissioner Barnier at the Plenary session of the European Parliament.
“This directive is a key text. Recent events have shown the urgent need to develop the tools necessary for a organised resolution of banks across the European Union”. Introductory remarks by Commissioner Barnier to the discussions on the proposal for a directive on bank resolution at the ECOFIN council.
Basel Committee’s agreement on the revised liquidity standards for banks: Statement by Commissioner Barnier
Commissioner Barnier has welcomed the unanimous agreement on the revised liquidity standards for banks reached yesterday by the Basel Committee on Banking Supervision. “I now call upon the Parliament and the Council to successfully conclude the CRD IV trilogue negotiations in the coming weeks”, said the Commissioner.
The European banking union, a precondition to financial stability and a historical step forward for European integration
“Member States have agreed to hand over the key supervisory tasks over their banks to the European Central Bank. This is the first step towards the Banking Union. The ECB will be in a position to detect risks to the viability of banks. And require banks to take the necessary actions. (...) This Single Supervisory Mechanism (SSM) will be a great asset for financial stability in Europe”. Speech by Commissioner Barnier at the EU–US Transatlantic Corporate Governance Dialogue, National Bank of Belgium
“24 hours after reaching an historical agreement on the European patent, which is a key component for our competitiveness, the Council has found a common approach on a fundamental element of financial stability in Europe”. Statement by Commissioner Barnier.
“Commissioner Barnier says there will be no exceptions for savings or cooperative banks. In the future, all banks in the Eurozone will be subject to supervision by the European Central Bank, in order to preserve the credibility of the system”. Article by Tobias Kaiser and Holger Zschäpitz, Die Welt.
Basel Committee's preliminary "Regulatory Consistency Assessment": statement by Commissioner Barnier
"In 12 out of 14 areas of the preliminary 'Regulatory Consistency Assessment' concerning the EU published by the Basel Committee today, the draft European legislation has been fairly assessed to be 'compliant' or 'largely compliant'. I have, however, reservations about the preliminary findings in the remaining two areas…". Statement by 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".
"We need an integrated Financial Union with enhanced democratic control". Speech by Commissioner Barnier at the Peterson Institute for International Economics, Washington DC.
"The question that is uppermost in my mind is how to strike the right balance between the need to impose prudential regulation and the need to stimulate growth." Interview by Monique Grégoire, Forces.
The financial crisis highlighted that public authorities are ill-equipped to deal with ailing banks operating in today's global markets and has cost taxpayers a lot of money. The proposals adopted today by the European Commission for EU-wide rules for bank recovery and resolution will change this. They ensure that in the future authorities will have the means to intervene decisively both before problems occur and early on in the process if they do.
"Thanks to the hard work of the national delegations and the Danish Presidency, we have marked important progress today. Member States have given the Presidency a mandate to start the next and final step: negotiations with the European Parliament."
Revised rules on capital requirements (CRD IV): Statement by Commissioner Barnier following the ECOFIN Council
"We have made real progress at this extraordinary Council. And I am convinced that at the next ECOFIN meeting on 15 May, on the basis of the very large consensus on the latest compromise text, the Council will be able to formally give the Presidency a mandate to start negotiations with the European Parliament".
"What lessons have we drawn from the crisis if we allow risky activities to prosper alongside better regulated and more solid ones?" Speech by Commissioner Barnier at the Conference on the shadow banking system.
In order to make the financial sector sounder and safer, it is now time to deal with the growing area of "shadow banking" – credit activity that is similar to a bank's, but is not regulated like a bank. To a certain extent, shadow banking performs important functions – for example, it creates additional sources of funding and offers investors alternatives to bank deposits. But it can also pose potential threats to long-term financial stability.
"The framework for remuneration plays an important role in restoring public confidence in European banks." Speech by Commissioner Barnier at the European Parliament workshop on the rules of CRD III in the area of remuneration policies.
In agreement with President Barroso, Commissioner Barnier has today appointed Erkki Liikanen as the Chairman of the future Group.
Statement by Commissioner Barnier on the EFTA Surveillance Authority's decision to take Iceland to the EFTA Court over its breach of the Deposit Guarantee Directive.
The European Banking Authority (EBA) has published a formal Recommendation, and the final figures, related to banks’ recapitalisation needs. These measures form part of a broader European package to address the current situation in the EU by restoring stability and confidence in the markets.
Video interview with Commissioner Barnier on bank capital requirements. viEUws.
The European Parliament and European Commission have joined forces to call on banks to ensure this year’s bonus round complies with EU rules agreed by the 27 finance ministers in November 2010. Statement by Commissioner Barnier.
With stock markets in turmoil, Michel Barnier and Jean-Pierre Jouyet met to discuss regulation. La Tribune took the opportunity to gather their views on the crisis, banking, financing for SMEs and shortselling. Interview by Christèle Fradin, La Tribune .
"We all know where the crisis came from. From undercapitalised financial institutions, failing supervision and faltering corporate governance rules. We need to finish our regulatory work: putting rules at the service of morality and banks at the service of the economy." Interview by Jean-Jacques Mevel, Le Figaro.
Banks have been at the centre of the financial crisis the global economy is facing since 2008. Lessons have been drawn from this and mistakes of the past should not repeat themselves. This is why the European Commission has brought forward today proposals to change the behaviour of the 8000 banks that operate in Europe. Europe is the first in the world to start the implementation of its G20 commitments in this matter.
Statement by Commissioners Barnier and Rehn following the publication by the European Banking Authority of the 2011 stress test results
Statement by Commissioner Barnier on Basel III and its implementation into EU law (Capital Requirement Directive - CRDIV)
SPEECH/11/270. Michel BARNIER Membre de la Commission européenne, chargé du Marché intérieur et des Services Gestion des Crises bancaires: premières réflexions, Parlement Suédois Stockholm, le 14 avril 2011...
The implementation of Basel 3 will take European specificities into account. A tax on financial institutions is useful to create a fund that can be used in case of problems. More competition among rating agencies. Interview by Francesco Ninfole, Milano Finanza.
One of the lessons of the financial crisis is that corporate governance, until now usually based on self-regulation, was not as effective as it could have been. The European Commission has launched today a public consultation that addresses the ways in which corporate governance of European companies can be improved. The deadline for submitting contributions is 22 July 2011.
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)
Commissioner Barnier promises rigorous bank stress tests before spring. Interview by Jean-Jacques Mevel, Le Figaro.
Following the publication of a Communication on 20 October 2010 on a European crisis management framework for the financial sector, the European Commission has today launched a consultation on technical details underpinning that framework.
European defence industries must be wary of accepting "an attractive source of capital" from sovereign wealth funds (SWFs) during the current global financial crisis, Commissioner Barnier said in an interview to Jane's. Interview by G. Anderson and M. Bell, Copyright © IHS Global Limited 2010, Jane's Defence Industry. Reproduced with permission.
Commissioner Barnier welcomes the endorsement of the new capital and liquidity requirements for the banking sector by the Heads of State and Government at the G20 meeting in Seoul. At the heart of this endorsement lies the Basel agreement of September 2010. The support this agreement has received today by world leaders marks an important step in strengthening banking regulation and global financial stability.
Speech by Commissioner Barnier at the 1st Congress of the Alumni Solvay School.
Very few rules exist which determine which actions should be taken by authorities in the case of a banking crisis. The European Commission responds by setting out its plans for an EU framework for crisis management in the financial sector. These pave the way for legislation due by spring 2011 which will create a comprehensive crisis management framework for banks and investment firms.
Statement by Commissioner Barnier on the agreement reached by the Basel Commitee on capital and liquidity requirements for the banking sector.
Joint press release - Publication of the results of the EU-wide stress-testing exercise (MEMO/10/356)
Deposit Guarantee Schemes – Frequently Asked Questions (MEMO/10/318)
Commission proposes package to boost consumer protection and confidence in financial services (IP/10/918)
Commissioner Barnier proposes new measures to improve protection for bank account holders, investors and insurance policy holders.
The financial crisis has highlighted a number of weaknesses and lacunas in how financial firms are governed. In order to come forward with legislative proposals to make the financial system stronger, the Commission has now launched a debate on this issue and wishes to engage with stakeholders.
Bankers' bonuses: Michel Barnier welcomes the agreement by Council and Parliament on new capital requirements for banks
"The requirements on pay and bonuses send a strong political message: there will be no return to business as usual."
European Commission Green Paper on corporate governance in financial institutions and report on remunerations - frequently asked questions (MEMO/10/229)
Commission proposes improved EU supervision of Credit Rating Agencies and launches debate on corporate governance in financial institutions (IP/10/656)
As part of its work on preventing a future crisis and strenghtening the financial system, the European Commission has put forward a proposal on Credit Rating Agencies (CRA) and launched a public consultation on reforming corporate governance in financial institutions. Furthermore, it has adopted a Communication where it commits itself to move swiftly in completing the necessary reforms to ensure a safe and sound European financial system.
Bank Resolution Funds – Frequently Asked Questions (Memo/10/214)
M. Barnier presents the new Communication from the Commission on bank resolution funds.
Opening the Conference on Building a Crisis Management Framework for the Internal Market in Brussels, Mr Barnier outlined his views on preventing and managing crises in Europe.
Financial crisis response: Commission asks stakeholders for views on further possible changes to Capital Requirements Directive ('CRD IV') (IP/10/197)