Calling on EU bodies to assess impact of legislation on SME lending
ESBG, UEAPME and UNI Europa Finance joint letter argues jobs and growth at stake
UNI Europa Finance, together with the European Savings and Retail Banking Group (ESBG) and the European Association of Craft, Small and Medium-sized Enterprises (UEAPME) have written to the European Commission and members of the European Parliament calling for an impact assessment of EU legislation on banks’ ability to lend to households and SMEs, which in turn would foster growth and jobs.
The organisations point out that proportionately higher compliance costs that locally-focused banks are facing will have a direct effect on SMEs and their employees. By applying the principle of proportionality to some areas of the Commission’s capital requirements package review (CRR II and CRD V), such as reporting and disclosure, the SME Supporting Factor, the counterparty credit risk and corporate governance, households and SME lending would benefit from a greater pool of capital available for lending.
The Commission and Parliament should consider less burdensome disclosure requirements for smaller, less-complex financial institutions; extending the scope of the SME Supporting Factor; revisiting the approaches to counterparty credit risk (CCR) and adopt a pragmatic approach on corporate governance.
UNI Europa Finance, ESBG and UEAPME strongly believe that a balance can be found between improving stability in the EU financial sector, and allowing banks to carry out their important activities which fund the European economy, thereby creating jobs and prosperity.
Read the full letter here