Speakers of the session
MEP and Vice-Chair, Committee on Economic and Monetary Affairs, European Parliament
Chairman, BNP Paribas
Objectives of the sessionOver the past few years, the European banks have raised their resilience to an unprecedented level. At the same time, the share price of European banks has been extremely volatile and remains low. In addition the current monetary, economic and regulatory environment challenges many banks.
The objective of this plenary session is to discuss the adjustment in EU banks’ balance sheets already achieved to fulfill regulatory prudential requirements and the remaining challenges linked to the forthcoming regulations - definition of MREL, review of the trading book, IRB floors, review of operational risks etc. - and the weak growth context (e.g. level of Non-Performing loans in some banks ‘balance sheets…).
Speakers will also be invited to propose measures which could improve the competitiveness of the EU banking system in the global landscape.
Points of discussion
What progress has been made by the European banking sector to improve its resilience and what are the remaining issues in this respect?
- In what way is the situation in the euro banking sector very different from what it was in 2008 (e.g. capital, liquidity, leverage, transparency)? Will global cross border resolution work if one or more G-SIFIs fail?
- What are the remaining weaknesses that can be seen in the EU banking sector? How to address them rapidly (e.g. Non-Performing Loans, closing of bank debt markets during the first quarter of 2016 …)? Why investors do not trust banks (i.e. reduced market capitalization related to total assets…)?
- What are the benefits and risks of increasing proportionality (differentiation of capital requirements, intensity of supervision and reporting obligations according to the size of banks) in the EU legislative framework?
How to improve the competitiveness of the EU banking system in the global landscape?
- How can we explain why US banks are more profitable than EU ones (e.g. superior level of growth, early repair of balance sheets, reduced impact of regulation thanks to the off-loading of mortgage loans in particular, lower level of competition in domestic markets…)?
- What are the consequences for the EU of such insufficient competitiveness of EU banks (e.g. capacity and cost of lending to resume growth, sovereignty issues…)?
- What should be the priority actions for EU Institutions in such a context? What important suggestions could be made following the call for evidence?