The Economic and Monetary Affairs Committee voted for targeted changes to the so-called “Daisy Chain” proposal providing systematically important banks with a sound resolution strategy.
After the text was adopted with 45 votes to 2 and 11 abstentions Jonás Fernández (S&D, ES), the lead MEP on the file, said: “The text adopted today by a large majority introduces several important points significantly improving on the European Commission proposal. These include: the introduction of a cap for the deduction mechanism (“Daisy Chain”) proposed by the Commission; the inclusion of a request for the Commission to assess the impact of the “Daisy Chain” framework on the different banking group structures to avoid any unintended consequences; and, the establishment of a transitional arrangement that allows the application by the European Resolution Authority of a transitional deduction regime applicable to MPE groups under certain restrictive conditions.
“I am very satisfied with the adopted text, and look forward to the interinstitutional negotiations to reach a good final deal that contributes to our overall goal of improving banking regulation for financial stability, economic growth and the wellbeing of citizens,” concluded Jonás Fernández.
The Committee also decided by 48 votes to 2 and 9 abstentions to enter negotiations with the Council and the Commission. The Council negotiating mandate was adopted by EU ministers in December 2021.
