Changes from report parliamentary committee draft to plenary report

RemovedE. whereas a digital euro could enhance EU payment efficiency, resilience, financial inclusion, innovation, public confidence and the euro’s international role;

AddedE. whereas a completed Banking Union would be a positive development for citizens and the EU economy, providing the basis for a more stable banking system, reduction of systemic risk, enhanced competition, improved consumer choice, increased opportunities for cross-border banking and access to retail financial services, greater economic investment, better access to funding for households and businesses, and lower costs for banking customers;

AddedF. whereas non-bank financial intermediaries (NBFIs, or ‘shadow banks’) remain outside the Banking Union architecture, thereby making the EU banking sector vulnerable to risks;

AddedG. whereas financial stability is a prerequisite for effective monetary policy and a resilient financial system; whereas the EU has already agreed its implementation of the Basel III framework and should implement the Basel III standards while taking into account the competitiveness of the EU banking sector, as well as international developments;

AddedH. whereas the Russian aggression against Ukraine and its economic and social consequences is having and will continue to have a direct and indirect impact on the EU banking sector; whereas EU banks play a pivotal role in ensuring the ongoing implementation of and compliance with the sanctions imposed by the EU against Russia in response to the invasion;

AddedI. whereas one of the key objectives of the Banking Union is that taxpayers should not bear the cost of remedial action when a bank fails;

AddedJ. whereas climate change, environmental degradation and the transition to a low-carbon economy may pose risks to financial stability and are factors that may be taken into account in assessing the risks for banks;

AddedK. whereas a digital euro would enhance EU payment efficiency, resilience, financial inclusion, innovation, public confidence and the euro’s international role;

Removed6. Notes that following the ECB rate hikes EU banks’ profitability and resilience have significantly improved14; emphasises that this can support essential investment and that institutions receiving State aid must face strict limits on dividends, buy-backs and variable remuneration;

Added6. Acknowledges the progress made on both the online and offline digital euro negotiations; welcomes the digital euro’s potential to complement and preserve cash, while enhancing the EU’s financial sovereignty and autonomy and contributing to financial inclusiveness; welcomes the finalisation of the Council’s General Approach concerning the digital euro in December 2025 and regards it as essential that Parliament finalises its own position as soon as possible;

Removed7. Calls on the Commission to develop guidelines for a targeted bank solidarity contribution reflecting recent profits, ensuring a fair contribution to public finances while supporting resilience and financial stability;

Added7. Considers the progress on gender balance in financial institutions, especially in management, to be limited; stresses that diverse leadership and better access to finance for women-led firms13 enhance governance, innovation and economic performance; calls on financial institutions, stakeholders, the Commission and the Member States to adopt effective diversity strategies, monitor gender gaps and embed gender equality in supervisory and investment frameworks to ensure inclusive capital access across the EU; recalls that Parliament’s position is to uphold and give precedence to gender-balanced shortlists for future candidates; stresses the importance of ensuring gender balance at all levels of management in the institutions and bodies of the EU that are responsible for the Banking Union;

Removed8. Welcomes AMLA’s role in strengthening the EU’s fight against money laundering and terrorist financing; calls for consistent implementation, enhanced cooperation, information sharing and coordinated enforcement across the EU;

Added8. Notes that following the increases in ECB interest rates the profitability and resilience of EU banks have significantly improved14 and remained high in 2025; emphasises that this profitability and resilience can support essential investment in the EU economy and the funding of households and companies, in particular SMEs and start-ups, as well as young professionals; underlines the important role played by banks in supporting SMEs and local economies and calls on the Commission to ensure that any regulation remains risk-sensitive; emphasises that credit institutions receiving State aid must operate within prudent parameters on dividends, buy-backs and variable remuneration;

Removed9. Underlines that robust, consistent and timely financial reporting is vital for supervision and stability; stresses that simplification must not weaken prudential, consumer protection or stability standards; calls for a balanced and more integrated approach with a common data dictionary and request repository, so as to cut unnecessary complexity while preserving the Banking Union framework’s robustness;

Added9. Stresses that the proper functioning and credibility of the Banking Union also depend on full respect for, and effective enforcement of, EU consumer protection law in the banking sector; highlights the fact that credit institutions must refrain from using unfair contractual terms and commercial practices, particularly in mortgage and retail lending; underlines the fact that consumers, including borrowers, must benefit from effective protection, legal certainty and access to effective redress; in this respect, calls on the Member States and competent authorities to ensure robust supervision and enforcement measures in cases of breach; further stresses the importance of ensuring adequate protection of primary residences, especially in the case of vulnerable households, taking into account the size of the residence and whether borrowers have already repaid a substantial part of their loan, such as 50 % of the initial loan;

Removed10. Recognises the institutional and regulatory progress that has strengthened euro area banks’ resilience; notes that barriers remain to unlocking the full potential of the EU Single Market for financial services; calls on the Commission, Member States and EU bodies to match ambitions with concrete steps to complete the SIU and Single Market, boosting simplification and competitiveness;

Added10. Welcomes AMLA’s role in strengthening the EU’s fight against money laundering and terrorist financing; calls for consistent implementation, enhanced cooperation, information sharing and coordinated enforcement across the EU; stresses the need for efficient cooperation between AMLA and the European Supervisory Authorities and prudential authorities; highlights the need for AMLA to adhere to the principle of proportionality and coordination in its supervisory and regulatory work;

Added11. Underlines the fact that robust, proportionate, consistent and timely financial reporting is vital for supervision and stability; stresses the importance of legal certainty, predictability and stability for the banking sector, and that simplification must not weaken prudential, resilience, consumer protection or stability standards; highlights the need for further measures to promote digitalisation and simplification while maintaining those standards; calls for a balanced and more integrated approach, including a centralised data hub, built on standardised definitions, a common data dictionary and a shared request repository, so as to cut unnecessary complexity across authorities, reduce duplication and improve data quality, while preserving the robustness of the Banking Union framework;

Added12. Acknowledges the institutional and regulatory progress that has strengthened the resilience of euro area banks; notes that significant barriers to unlocking the full potential of the EU single market for financial services remain; calls for the Commission, the Member States and EU bodies to match ambitions with concrete steps to complete the SIU and the single market, boosting simplification and competitiveness; calls on the Commission to propose, in its 2026 report on the competitiveness of the EU banking sector, meaningful actions aimed at increasing the competitiveness of EU banks, while safeguarding banks’ essential role in financing the investments necessary to deliver the Union’s green and digital transitions;

Added13. Stresses that, given the ongoing geopolitical uncertainty, potentially overvalued stock markets and recent instances of turmoil in the United States following opaque lending in the non-bank (private credit) sector, supervisors should maintain a forward-looking perspective and sufficiently monitor risks, and that banks should maintain adequate capital buffers and be operationally resilient; highlights, in this regard, the need to improve supervision and resilience of non-bank financial intermediaries; highlights that prudent supervision today can protect taxpayers, depositors and the real economy from losses tomorrow;

Added18. Takes note of an ECB publication16 suggesting that high capital requirements do not hamper banks’ competitiveness, but rather ensure banks’ resilience and ability to finance the economy throughout the cycle;

Added19. Regrets the increasing number of bank branch closures, affecting vulnerable and peripheral communities; recalls citizens’ right to access basic financial services; underlines smaller banks’ role in access to services to households and small businesses; highlights the fact that the diversity of banking business models enhances the resilience of the financial system; acknowledges the importance of digitalisation and artificial intelligence in strengthening the effectiveness of the banking sector; notes with concern, however, that there have been AI-related job losses; calls on credit institutions to implement reskilling policies and ensure human oversight in automated decisions; stresses the need to safeguard job quality, fair conditions and equitable banking access;

Added20. Acknowledges the specific risks posed by crypto-assets, while also acknowledging the opportunities they offer, such as euro-denominated stablecoins; calls for consistent innovation-friendly supervision to ensure that innovation serves the public; calls for the EU and the national authorities to monitor exposures, address risks and counter speculative behaviours, combat financial crime and protect consumers; underlines the importance of global standards in this field;

Added21. Calls on the Commission, the EBA and the national competent authorities within the Banking Union to ensure the strict, consistent and faithful implementation and enforcement of Markets in Crypto-Assets Regulation17 as a necessary complement to the Union’s bank-based financial stability framework;

Added22. Takes note of the uncertainties stemming from third-country multi-issuance stablecoins for EU banks; highlights the potential regulatory arbitrage between jurisdictions, which could lead to runs on EU banks and have spillover effects;