MIL OSI Translation. Region: Germany / Deutschland –
Source: CDU CSU
Mister President! Ladies and gentlemen! Today we are bringing the law to reduce risks and strengthen proportionality in the banking sector into parliament and discuss it. In this debate, we should concentrate on what is regulated in the law, and not digress into generalities as we have just learned.
(Applause from the CDU / CSU and members of the SPD)
The corona pandemic shows that regulation has been successful in recent years, as we have now been able to handle the buffers flexibly and have stabilized the banks. That is why, despite all the criticism that I believe any political group can have in detail, we can say that regulation over the past few years has been successful. The financial centers are stable. This is thanks to our politics.
(Applause from the CDU / CSU and members of the SPD – Alexander Dobrindt [CDU / CSU]: That’s exactly how it is!)
Then, once the pandemic is over, we must also look at what has been eased and what is to be retained from the easing, what was overregulation and where we need to turn back. For the time after the pandemic, my request to the Federal Ministry of Finance is not to shut itself off from this path.
Otherwise, it is about reducing the risks and strengthening proportionality. We still have room for improvement when it comes to proportionality.
(Dr. Marco Buschmann [FDP]: Yes!)
Minister of Finance, we should improve this accordingly within the framework of the legislative procedure.
(Applause from the CDU / CSU and Deputy Markus Herbrand [FDP])
At European level, we successfully managed to have the promotional banks removed. If we have managed to take out the development banks, the state development banks, and if we have managed to take out the Rentenbank, then we should pass on the corresponding easements nationally, such as the disclosure requirements. Development banks that do not finance themselves on the market do not need such obligations. I think there needs to be readjustment here.
(Applause from members of the CDU / CSU)
When it comes to the capital requirements, the goal is to have the Common Equity Tier 1 capital. Ladies and gentlemen, I find the call for the legislature to torpedo Level 3 legislation at European level at least remarkable. We shouldn’t close the way here, but at the same time introduce proportionality here as well. I can imagine that the requirements for small banks are different from those for large banks. We should discuss this accordingly within the framework of the legislation.
(Applause from the CDU / CSU)
Where I would like to ask a little bit is the aptitude test by the bank itself. In future, the draft law stipulates that the bank itself should examine the extent to which boards of directors and supervisory boards are suitable to take over the supervision of the bank.
(Dr. Alice Weidel [AfD]: That is exactly the problem of the banks!)
In order to understand compliance properly, one should ask the question: is it necessary that those who are supervised are the ones who then check accordingly? I believe that there is still a need for improvement and clarification here – as is the case with the issue of corporate loans. Ladies and gentlemen, although we as Members of Parliament are familiar with the PEPP issue – this will be expanded accordingly – I do not think that the current question should indicate that this should also be carried into the banks on this scale.
(Dr. Alice Weidel [AfD]: They don’t earn any more money!)
When it comes to deposit insurance, we need a reliable framework where we know how the BMF and BaFin will argue and work in the future. But I do not believe that we as Parliament should decide when a deposit guarantee is actually capable of acting, and we should also avoid that. Wherever politics is made – from the associations towards their own sponsors, towards the banks – we should ensure objectivity and nothing else.
Finally, let me say something about denomination with a view to retail investors. Minister, you said that consumer protection is important. That is correct in this context. But the minimum denomination of 50,000 euros in the retail investor segment seems excessive to me. In the case of small banks in particular, such as the UmweltBank, it would mean that no corresponding products, profit participation certificates, could be issued at all. Here we should rethink the limit of 50,000 euros. I think such a limit is not suitable for guaranteeing the appropriate consumer protection here. Rather, consumer protection should be regulated in the law where it belongs.
(Applause from Deputy Dr. Hermann-Josef Tebroke [CDU / CSU])
Let us now clarify these questions in the hearing. Let’s get into the legislative process. Let us talk about the law as it is, and otherwise accompany bank regulation in future where it makes sense and necessary, and not regularly accompany a current law with old chats.
Thank you very much.
(Applause from the CDU / CSU)
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.