Be the first to comment!EC needs to review state aid rules on banking, says MEP Sant
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The European Commission has been requested by Alfred Sant to review state aid rules on banking.
He also quizzed the Commission for its assessment on the effectiveness of EU rules on state aid for banking.
The MEP asked the European Commission whether it is considering a review of its Communication on the application of State aid rules to banks and if yes, then “when is this review being foreseen.”
Dr Sant said that he was voicing the concerns of banks operating in Malta at different levels within the European Parliament.
Representatives of BOV met with the MEP last week and briefed him on the impact of the established minimum requirements of the Bank Recovery and Resolution Directive (BRRD) on smaller banks across Europe.
One conclusion from that briefing, Dr Sant said, was that a “EU one-size-fits-all policy has a negative impact on smaller banks, not only in Malta but also in other EU countries including Portugal and Germany.”
Dr Sant asked, “does the Commission consider that the Communication’s provisions are still effective or should they be better aligned with the EU framework of rules on recovery and resolution?’
He added that in 2013 the EC published its Communication on the application of State aid rules to support measures in favour of banks in the context of the financial crisis.
“Since then the Commission has adopted a number of rules on banking, in particular, the (BRRD) which sets out a framework for authorities to manage bank failures effectively. EU rules, in particular, the BRRD and the Commission Communication on State aid for banks are strongly interconnected,” Dr Sant told the Commission.
