Press release: Universal banks crucial in a Capital Markets Union
”The European Union lacks investment of 900 billion euros. This is one of the main challenges we face when proceeding with a Capital Markets Union and with the legislation creating a framework for stability in European financial markets.”
”We need to ensure that the rules, the Single Rulebook that creates a common ground for a single financial market, support investment and liquidity all over Europe.”
This is what MEP Gunnar Hökmark, Rapporteur on structural reform in the banking sector, said in his introductory statement during the first exchange of views on the topic in the European Parliament’s Economic and Monetary Affairs Committee.
”Universal banks do not expose us to bigger risks than other banks do, but we need to deal with risks in universal banks that are bigger than we can accept and that we have not already dealt with in previous legislation since 2009.”
”Universal banks can play a crucial role in making a Capital Markets Union a reality. They can provide liquidity to markets that today lack capital and growth, and they can ensure that depositors’ money is used for investment and jobs. When national authorities conclude that a bank is not recoverable or resolvable, it will be possible to separate trading and retail where generating liquidity involves bigger risks for depositors than we can accept,” Gunnar Hökmark concluded.