Implementation of the Financial Stability Board (FSB) proposals on bank TLAC and minimum haircuts for securities financing transactions

15.10.2015

Question for written answer E-013856-15
to the Commission
Rule 130
Fabio De Masi (GUE/NGL)

1. The Financial Times reported on 12 October 2015 that several Member States (France, Germany and Italy) are planning to implement laws that allow domestic banks to increase their total loss absorbing capital (TLAC) without issuing new debt, by making formerly senior debt eligible for ‘bail-in’. How does the Commission view these plans/laws and what impact does the Commission expect these laws will have on the rating of bank debt and banks' financing costs in the EU?

2. When does the Commission plan to implement FSB's proposals on minimum haircuts for securities financing transactions and if there are no current plans for implementation, what are the reasons for this?