Risk reducing package adopted in EP
“The adoption of this legislation in the European Parliament is a very important step in the completion of the Banking Union. The new requirements will reduce risks in the financial system but on the same time, we managed to secure that banks can play an active role in financing investments and growth”, says the European Parliament rapporteur Gunnar Hökmark.
The ECON committee in European Parliament today adopted an agreement between EP and Council on changes to the Bank Recovery and Resolution Directive. This is a part of the risk-reducing package presented by European Commission in 2016. The agreement will lead to the introduction of Total loss-absorbing capacity (TLAC) in EU. This is an international standard with the aim to ensure that big systemically important banks have enough debt for bail-in. Gunnar Hökmark has been the European Parliaments rapporteur and responsible for the negotiations in EP and with Council. European Parliament will have a final plenary vote on the agreement in April.