The Council of the EU has announced its conclusions on the European Commission’s (Commission) communication on the mid-term review of the Capital Markets Union (CMU) action plan. Among other things, the Council:
- looks forward to the upcoming legislative proposal regarding the prudential treatment of investment firms, which should provide an adequate framework to address the risks their activities entail when those activities are not appropriately addressed by existing requirements;
- looks forward to examining the upcoming legislative proposal regarding a European framework for covered bonds, which should build on the continued well-functioning national regimes and strike the right balance between harmonisation and national specificities;
- welcomes the Commission’s upcoming assessment of a potential EU framework in the field of fintech, based on their activities rather than technologies, to harness the potential of fintech in broadening choice, competition and access to capital market based finance, while addressing any possible emerging risks associated with fintech;
- welcomes the initiatives aimed at strengthening banks’ capacity to lend to the economy, including measures to support secondary markets for non-performing loans;
- invites the Commission to carry forward the CMU action plan as adjusted in order to have the building blocks in place by 2019.