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pursuant to Rule 133 of the Rules of Procedure

on tightening up bank regulation

Sophie Montel, Dominique Bilde, Florian Philippot

Motion for a European Parliament resolution on tightening up bank regulation  

The European Parliament,

–       having regard to Rule 133 of its Rules of Procedure,

A.     whereas an accommodative monetary policy intended to bring interest rates down to close to 0 % was one of the few solutions implemented by the authorities to contain the financial crisis;

B.     whereas in view of the high level of private and public debt, just a small rise in these interest rates would suffice for banks to suffer substantial losses on their holdings;

C.     whereas the French banking model is not profitable as the cost of buying equity capital (10 to 12 %) is higher than the returns on equity (6 %);

D.     whereas the internationalisation of public debt causes vulnerability;

E.     whereas risk weighting in calculation of the TLAC (total loss absorbing capacity) ratio is purely cosmetic as it is the banks themselves that construct the weighting models;

1.      Calls on the Commission to embark upon a process of renationalisation of public debt and increase the leverage ratio based on non-risk-weighted total assets.

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