WIREDGOV

On 27 October, the Commission adopted a set of new rules that aim at ensuring the resilience of banks in the EU to potential economic shocks, while enabling them to contribute to the green transition of EU economy and protecting financial stability.

“We depend on a strong and stable banking sector to fund jobs and sustainable growth. It should adequately finance a social market economy that works for Europe's people and businesses,” Commission's Executive Vice-President Valdis Dombrovskis told the press conference following the meeting of the College of Commissioners. He underlined that today's proposal aimed to keep banks ‘strong, modern, viable and competitive'.

Executive Vice-President explained the importance of international standards in making the banking sector more resilient and stable. “We are proposing to finalise the post-crisis reforms of the banking regulation. These are based on the international standards adopted by the Basel Committee on Banking Supervision, known collectively as Basel III,” he said.

The recent (27 October 2021) package also includes proposals on how banks need to take into account Environmental, Social and Governance (ESG) risks when managing their business.

“We are introducing specific requirements for banks to implement the systematic management of ESG risks,” said Mairead McGuinness, Commissioner for financial services, financial stability and Capital Markets Union. She also explained the improvements proposed in the supervision of banks. Supervisors will have stronger tools to oversee EU banks, including complex banking groups. Minimum standards will be introduced to supervise third-country branches of banks in the EU.

Commissioner McGuinness also recognised the opportunities and changes that the future digital and green transition will bring into the financial system. “Finishing the job on the reforms prompted by the global financial crisis will help us concentrate on preparing for the future,” she concluded.

• Press release: Banking Package 2021: new EU rules to strengthen banks' resilience and better prepare for the future
• Questions and answers
• [Video] Press conference by Valdis Dombrovskis, Executive Vice-President of the European Commission, and Mairead McGuinness, European Commissioner

Strengthening the resilience of EU banks (147.939 kB – PDF)