'New rules for banking sector go in the right direction' say Euro MPs
The new rules, supported by all 44 members of the economic and monetary affairs committee present, will add more stability and prudence to the European financial sector.
Udo Bullmann, S&D negotiator, welcomed the result: "The compromise reached today is a big step forward on stabilising the European banking sector, but further ambitious work will be needed to put Europe's banks on the right track.
"The S&D pushed for stricter rules on remuneration in European banks. Following today's compromise, no banker should receive a bonus that is greater than his or her base salary."
"The S&D has also achieved stronger capital, liquidity and leverage requirements to strengthen the resilience of European banks. At the same time, a flexible treatment is ensured where it is necessary."
"The risk weight on SME loans will be considerably lowered, i.e. it will not be more expensive for banks to lend to the real economy. Stable SME financing for sustained economic growth in Europe will not be jeopardized by the new regulation."
"In any future proposal on the risk weighting of sovereign bonds, euro bonds should be weighted zero risk."
"The S&D calls on the Commission to come forward with further work on the differentiation of the banking sector and a clear distinction between investment and retail banking, as well as a crisis resolution package."