Smaller banks claim disproportionate burdens – Dombrovskis
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European Commissioner Valdis Dombrovskis said that there have been many claims from smaller banks within the European Union that prudential requirements impose a disproportionate burden on them, for example in the field of reporting.
Mr Dombrovskis said that he intends to explore ways to simplify these requirements, in particular for the smallest European banks, whose size and area of activity are very limited.
"At the same time, it is important to ensure that all depositors can be confident that their bank – whether small or large – is well regulated and supervised." EU Commissioner told the Committee on Economic and Monetary Affairs (ECON) in Strasbourg when referring to an intervention by Maltese MEP Alfred Sant on smaller banks operating within the European Union.
Following the resignation of European Commissioner Jonathan Hill after the Brexit vote, ECON held a hearing with Valdis Dombrovskis, European Commission Vice-President in charge of Euro and Social Dialogue in connection with the transfer of the portfolio for Financial Stability, Financial Services and the Capital Markets Union. The ECON members forwarded their remarks for the attention of Commissioner Dombrovskis.
Dr Sant, a member at the ECON Committee, specifically focused his intervention on the smaller economies within the European Union.
Dr. Sant told Mr Dombrovskis that the Banking Union is close to being completed and is one of the most relevant projects for the future of the euro area. The Maltese MEP asked Mr. Dombrovskis for his assessment of the Banking Union and what were the next steps for the completion of the Banking Union.
"How do you plan to ensure that smaller banks within smaller economies, facing already specific challenges, do not become more risk opposed by hampering their exposure to financial services in their national economy, or more essentially when lending to SMEs? Theoretically, all banks would need to be treated equally regardless their size and should not become less competitive." Dr Sant told Commissioner Dombrovskis.