BRUSSELS, 23 June 2015 – The following statement is a reaction by ESBG to the Economic and Financial Committee of the Council of the European Union conclusions published on June 16 on a Capital Markets Union (CMU).
Common Sense Prevails
A common sense approach has been taken by Ecofin to encourage broadening and diversifying sources of financing for companies, especially SMEs – the growth engine of the EU economy.
Financing from an array of sources should complement, not replace, the role already played by savings and retail banks. That model has a track record for bringing life to start-ups as well as providing nourishment for oftentimes globally savvy, export-oriented midsize firms. Banks provide sophisticated credit risk assessment systems and have irreplaceable knowledge of – and relationships with – local enterprises.
A framework by year end for simple, transparent and standardised securitization is an ambitious, but needed, step forward in the near-term. Promoting credit information access can go hand in hand with keeping the provision of data on a voluntary basis where wished by certain SMEs. Policymakers see the pressing need by smaller firms to keep burden at bay when seeking access to credit data throughout the European Union. The conclusions also recognize a need for balance struck between achieving adequate investor protection and confidence in a banking system on more sound footing.
Proportionality: One size does not fit all
In the long term, it is sensible to keep watch of the cumulative effect of legislative changes made during the run-up to the Capital Markets Union. Casting a close eye on remuneration rules, designed for complex financial firms, would spare local-oriented retail and savings banks an added blow from unfair, additional compliance costs.