General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
November 21, 2017

During the structured dialog with the ECON Committee, the EC Vice President (VP) Valdis Dombrovskis discussed planned and ongoing work to make the financial sector in Europe more resilient and integrated. He also discussed the three key objectives of completing the Banking Union, including the framework for the banking sector; accelerating the building of a Capital Markets Union; and embracing new forms of finance, including fintech and sustainable finance.

Mr. Dombrovskis highlighted that the third pillar of the Banking Union—that is, European Deposit Insurance Scheme (EDIS)—is still missing. He noted, "We also need to accelerate the trend of reducing non-performing loans, and prevent the stock from building up again. Next spring, we will present a package of measures on this basis. Among other things, it will include a blueprint for national asset management companies, and possible prudential backstop measures for new loans that turn bad." Alongside the work for a safer banking sector, it must be ensured that rules governing derivatives markets are fit for purpose. Central counterparties, or CCPs, are now a systemic part of the financial sector and their importance is growing. Hence, three self-standing proposals have been presented on the derivatives markets to strengthen financial stability while avoiding undue fragmentation and costs.

With regard to the Capital Markets Union, he stated, "The Commission is working at full speed to create the right conditions for more funding to flow to the real economy. Brexit means the rest of the EU economy needs advanced capital markets more than ever." He also suggested working together to integrate the EU capital markets. One particular focus is to give consumers greater choice and better access to retail financial services, such as the proposal on pan-European personal pension product or PEPP; cross-border payment fees; and proposal (for early next year) to address obstacles to cross-border distribution of funds. Supervision is another focus area, with respect to which targeted changes to the tasks, governance, and funding of ESAs have been proposed. It needs to be ensured that ESAs are equipped to better promote supervisory convergence and to address new challenges and risks. In line with the principle of subsidiarity, expansion of direct EU supervision to certain targeted areas is also being proposed.

Finally, he examined the upcoming challenges and opportunities, such as the emergence of financial technology and sustainable finance. When it comes to financial technology, Europe is well-placed to become a global leader. This will require consistent regulation and appropriate supervision for fintechs to scale up across the single market. EC is working on a Fintech Action Plan for early next year. He concluded that a complete Banking Union, along with the Capital Markets Union, will help build the resilient and integrated financial system that citizens and businesses need.

Related Link: Speech

Keywords: Europe, EU, Banking, Securities, CCP, Banking Union, Capital Markets Union, EDIS, Fintech, Sustainable Finance, NPL, EC

Related Insights

US Agencies Extend Consultation Period for the Proposed SA-CCR

US Agencies (FDIC, FED, and OCC) extended the comment period for a proposed rule to update their standards for how firms measure counterparty credit risk posed by derivative contracts.

February 18, 2019 WebPage Regulatory News

FED Extends Consultation Period for Stress Testing Rule

FED has published in the Federal Register a notice proposing amendments to the company run and supervisory stress test rules.

February 15, 2019 WebPage Regulatory News

EBA Single Rulebook Q&A: Third Update for February 2019

EBA published answers to two questions under the Single Rulebook question and answer (Q&A) updates for this week.

February 15, 2019 WebPage Regulatory News

FSB Report Examines Financial Stability Implications of Fintech

FSB published a report that assesses fintech-related market developments and their potential implications for financial stability.

February 14, 2019 WebPage Regulatory News

US Agencies Amend Regulatory Capital Rule to Allow Phase-In for CECL

US Agencies (FDIC, FED, and OCC) adopted the final rule to address changes to credit loss accounting under the U.S. generally accepted accounting principles; this includes banking organizations’ implementation of the current expected credit losses (CECL) methodology.

February 14, 2019 WebPage Regulatory News

FASB Proposes Taxonomy Improvements for the Credit Losses Standard

FASB proposed the taxonomy improvements for the proposed Accounting Standards Updates on Targeted Transition Relief for Topic 326 (Financial Instruments—Credit Losses) and Topic 805 (on Business Combinations—Revenue from Contracts with Customers).

February 14, 2019 WebPage Regulatory News

SRB Publishes Framework for Performing Valuations in Resolution

SRB published its framework for performing valuations in resolution. The framework provides independent valuers and the general public with an indication of the expectations of SRB on the principles and methodologies for valuation reports, as set out in the legal framework.

February 14, 2019 WebPage Regulatory News

FED Issues Correction in Historical Dataset in its 2019 Stress Tests

FED identified an error in the historical dataset used in its 2019 stress tests and issued a correction.

February 13, 2019 WebPage Regulatory News

OCC Consults on Company-Run Stress Test Requirements for Banks

OCC proposed amendments to its company-run stress testing requirements for national banks and Federal savings associations, consistent with section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

February 12, 2019 WebPage Regulatory News

CFTC Extends Comment Periods for Trade Execution Requirement Proposals

CFTC announced that it is extending comment period for the proposed amendments related to the regulations on swap execution facilities (SEF) and trade execution requirement.

February 12, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2610