Local view for "http://purl.org/linkedpolitics/eu/plenary/2003-09-01-Speech-1-086"
| Predicate | Value (sorted: default) |
|---|---|
| rdf:type | |
| dcterms:Date | |
| dcterms:Is Part Of | |
| dcterms:Language | |
| lpv:document identification number |
"en.20030901.6.1-086"2
|
| lpv:hasSubsequent | |
| lpv:speaker | |
| lpv:spoken text |
"Mr President, I would like to add my congratulations to the rapporteur, who has worked very hard on this and produced an excellent report which has my firm support.
I agree over the need to move to a risk-sensitive framework which rewards prudent lending and penalises imprudent lending. I also agree with the aspiration to implement the accord in as near parallel with the United States as possible, to prevent the banking sector in the European Union from suffering a competitive disadvantage.
I am pleased that Mr Radwan's report recognises the importance of proper cost benefit analysis and of tailoring the framework to the needs of different sectors affected by the capital adequacy directive. That includes both small and large banks, investment firms and firms which have a mix of investment and credit business. In the future we may have to amend the directive to take into account the needs of commodities firms, if they are brought into the framework.
I congratulate the Commission on its progress in dealing with the issue of small business lending. It is absolutely right that the framework should not penalise small business lending unnecessarily. Many small businesses have nothing to fear from a risk-sensitive framework because there are many small businesses which are very good risks and which therefore can expect to get cheaper finance as a result of Basel II. There are, however, some small start-up businesses which are high-risk and I agree with the Commissioner that they should continue to attract a high capital charge. On the whole, with regard to SMEs – particularly in the light of reforms to the definition of retail which embrace a lot of SME lending – we are working towards a framework which is a fair and balanced solution on the SME lending issue.
I would like to see the framework take a light touch on operational risk. Operational risk is something that is not yet easily calibrated and we should be very cautious before we impose a large charge. We should be flexible in reflecting developments on how that charge is measured. It is also vital for the framework to recognise the important risk mitigation role played by collateral, both financial and physical. That is another very important part of the Radwan report which we, as MEPs, should recognise. We should also recognise the importance of insurance and indemnity insurance as a way of mitigating risk. This is particularly important in relation to investment firms.
Finally, the framework should try to go with the grain of professional practice. It should encourage good practice and work with the best of industry practice, rather than perhaps impose a wholly different framework on top of good industry practice."@en1
|
| lpv:spokenAs | |
| lpv:unclassifiedMetadata |
Named graphs describing this resource:
The resource appears as object in 2 triples