Inclusive and sustainable Banking Union - Related Opinions

The EESC welcomes the Commission's package, a centrepiece in the EU offensive to address the persisting issue of NPLs and fundamental to progress towards the Banking Union. The EESC agrees with the application of statutory prudential backstops as a preventive measure to ensure that credit losses on future NPLs are sufficiently provisioned but warns against a "one size fits all" approach. The Committee recognises that the Commission gives an answer to many of the problems of fragmented NPLs secondary markets in the EU, however, the Committee is of the view that regulators must not encourage the sale of NLPs. The EESC welcomes that the right to a fair trial in a national court is ensured if it is necessary and if the application of the out-of-court procedure as proposed in the directive is restricted.

The EESC very much welcomes the Commission’s package of proposals and hopes that it will contribute effectively to complementing the work done after the crisis to reform the financial sector. The Committee welcomes the underlying holistic and integrated approach and believes that the proposed measures will undoubtedly help strengthen Europe’s prudential and resolution framework for banks. The Committee also these proposals will enable progress to be made not only in further advancing the Banking Union, but also in implementing its third pillar, the European Deposit Insurance Scheme and that certain specific adjustments in the proposals should facilitate the pursuit of a Capital Markets Union.