On Banking Union – annual report 2025

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on Banking Union – annual report 2025

(2025/2136(INI))

The European Parliament,

– having regard to its resolution of 8 May 2025 on Banking Union – annual report 20241,

– having regard to the Commission’s follow-up to Parliament’s resolution of 8 May 2025 on Banking Union – annual report 2024,

– having regard to document published by the European Central Bank (ECB) entitled ‘Feedback on the European Parliament’s resolution on Banking Union – annual report 2024’,

– having regard to the ECB’s 2024 Annual Report on supervisory activities, published on 28 April 2025,

– having regard to the 2024 Annual Report of the Single Resolution Board (SRB), published on 26 June 2025,

– having regard to the adoption of the Anti-Money Laundering Directive (AMLD)2 and the Anti-Money Laundering Regulation (AMLR)3, and to the establishment of the Anti-Money Laundering Authority (AMLA)4,

– having regard to the implementation of the Basel III standards, namely to the adoption of amendments to the Capital Requirements Directive5 and to the Capital Requirements Regulation6,

– having regard to the adoption of Commission Delegated Regulation (EU) 2024/2795 of 24 July 2024 amending Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to the date of application of the own funds requirements for market risk7,

– having regard to its position at first reading of 24 April 2024 on the proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 806/2014 as regards early intervention measures, conditions for resolution and funding of resolution action8,

– having regard to its position at first reading of 24 April 2024 on the proposal for a Directive of the European Parliament and of the Council amending Directive 2014/59/EU as regards early intervention measures, conditions for resolution and financing of resolution action9,

– having regard to its position at first reading of 24 April 2024 on the proposal for a Directive of the European Parliament and of the Council amending Directive 2014/49/EU as regards the scope of deposit protection, use of deposit guarantee schemes funds, cross-border cooperation, and transparency10,

– having regard to the report of its Committee on Economic and Monetary Affairs of 23 April 2024 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 806/2014 to establish a European Deposit Insurance Scheme (EDIS),

– having regard to the Commission Communication ‘Savings and Investments Union – A Strategy to Foster Citizens’ Wealth and Economic Competitiveness in the EU’ (COM(2025)0124),

– having regard to the Five Presidents’ Report of 22 June 2015 entitled ‘Completing Europe’s Economic and Monetary Union’,

– having regard to Enrico Letta’s report of 10 April 2024 entitled ‘Much more than a market – Speed, security, solidarity: empowering the Single Market to deliver a sustainable future and prosperity for all EU Citizens’,

– having regard to Mario Draghi’s report of 9 September 2024 entitled ‘The future of European competitiveness’,

– having regard to the Eurogroup statement of 11 March 2024 on the future of Capital Markets Union, and to the Eurogroup statement of 16 June 2022 on the future of the Banking Union and the Eurogroup follow-up thereto of 28 April 2023,

– having regard to the Basel Committee on Banking Supervision’s disclosure framework for banks’ crypto asset exposures and to the targeted amendments to its prudential standard on banks’ exposures to crypto assets, both published on 17 July 2024,

– having regard to the Basel Committee on Banking Supervision’s publication of 25 April 2024 entitled ‘Core Principles for effective banking supervision’,

– having regard to the ECB’s Financial Stability Review of 17 November 2025,

– having regard to the ECB Occasional Paper No 328 of 2023 entitled ‘The Road to Paris: stress testing the transition towards a net-zero economy’,

– having regard to the Financial Stability Board publication of 9 November 2015 entitled ‘Principles on Loss-absorbing and Recapitalisation Capacity of G-SIBs in Resolution’,

– having regard to the Financial Stability Board report of 10 October 2023 entitled ‘2023 Bank Failures – Preliminary lessons learnt for resolution’,

– having regard to the Single Supervisory Mechanism (SSM) supervisory priorities for 2025-2027,

– having regard to the SRB’s biannual reporting note to the Eurogroup of November 2025,

– having regard to the outcome of the 2025 EU-wide transparency exercise of the European Banking Authority of December 2025,

– having regard to Special Report 12/2023 of the European Court of Auditors of 12 May 2023 entitled ‘EU supervision of banks’ credit risk – The ECB stepped up its efforts but more is needed to increase assurance that credit risk is properly managed and covered’,

– having regard to the statements by Claudia Buch, Chair of the Supervisory Board of the ECB, at the hearings conducted by Parliament’s Committee on Economic and Monetary Affairs on 27 March 2025, 15 July 2025 and 5 November 2025,

– having regard to the statements by Dominique Laboureix, Chair of the SRB, at the hearings conducted by Parliament’s Committee on Economic and Monetary Affairs on 3 March 2025, 15 July 2025 and 5 November 2025,

– having regard to the European Banking Authority’s risk assessment reports of June 2025,

– having regard to its resolution of 14 March 2019 on gender balance in EU economic and monetary affairs nominations11,

– having regard to its resolution of 25 March 2021 on strengthening the international role of the euro12,

– having regard to Rule 55 of its Rules of Procedure,

– having regard to the report of the Committee on Economic and Monetary Affairs (A10-0000/2025),

A. whereas the Banking Union aims to safeguard banking stability, avoid taxpayer-funded bailouts, strengthen resilience, enable orderly resolution, reduce market fragmentation and enhance competitiveness, cross-border activity and access to finance, while the ‘too big to fail’ issue remains unresolved;

B. whereas the Banking Union, consisting of the SSM and the Single Resolution Mechanism (SRM), aligns supervision with crisis management, but remains incomplete without a fully implemented EDIS;

C. whereas the EU should fully implement the Basel III standards without delay;

D. whereas climate change, environmental risks and the low-carbon transition must be considered in assessing banks’ balance-sheet risks;

E. whereas a digital euro could enhance EU payment efficiency, resilience, financial inclusion, innovation, public confidence and the euro’s international role;

F. whereas EU banks have posted record profits since 2022 thanks to delayed pass-through of monetary tightening policies; whereas several Member States have introduced temporary bank levies to ensure a fair contribution while safeguarding stability and social cohesion;

General considerations

1. Welcomes the progress with the SSM and SRM over the past decade; calls for a full and swift completion of the Banking Union, including a fully fledged EDIS; stresses that the Banking Union must support a more inclusive and sustainable financial system aligned with social cohesion and the EU Green Deal;

2. Calls on the Commission to prioritise the completion of the Banking Union and Savings and Investment Union (SIU); highlights their importance for citizens, SMEs and the real economy by fostering sustainable prosperity, quality jobs and financial stability; underlines the need for a strong solidarity-based framework that prevents bank runs;

3. Emphasises the banking sector’s role in financing the transition to a carbon-neutral economy; calls for stronger supervisory guidance to align financial institutions with the EU’s climate objectives;

4. Welcomes progress on the digital euro and its potential to complement cash while enhancing the EU’s financial sovereignty and autonomy;

5. Regrets the persistent gender imbalance in financial institutions, especially in management; stresses that diverse leadership and better access to finance for women-led firms13 enhance governance, innovation and economic performance; calls on financial institutions, stakeholders, the Commission and Member States to adopt effective diversity strategies, monitor gender gaps and embed gender equality in supervisory and investment frameworks to ensure inclusive capital access across the EU;

6. Notes that following the ECB rate hikes EU banks’ profitability and resilience have significantly improved14; emphasises that this can support essential investment and that institutions receiving State aid must face strict limits on dividends, buy-backs and variable remuneration;

7. Calls on the Commission to develop guidelines for a targeted bank solidarity contribution reflecting recent profits, ensuring a fair contribution to public finances while supporting resilience and financial stability;

8. Welcomes AMLA’s role in strengthening the EU’s fight against money laundering and terrorist financing; calls for consistent implementation, enhanced cooperation, information sharing and coordinated enforcement across the EU;

9. Underlines that robust, consistent and timely financial reporting is vital for supervision and stability; stresses that simplification must not weaken prudential, consumer protection or stability standards; calls for a balanced and more integrated approach with a common data dictionary and request repository, so as to cut unnecessary complexity while preserving the Banking Union framework’s robustness;

10. Recognises the institutional and regulatory progress that has strengthened euro area banks’ resilience; notes that barriers remain to unlocking the full potential of the EU Single Market for financial services; calls on the Commission, Member States and EU bodies to match ambitions with concrete steps to complete the SIU and Single Market, boosting simplification and competitiveness;

Supervision

11. Notes that SSM banks’ aggregate Common Equity Tier 1 (CET1) ratio reached 16.12 % in Q2 2025, with return on equity (ROE) at 10.11 %, while non-performing loans (NPLs) decreased to 2.22 % and stage 2 loans stand at 9.59 %15; emphasises the need to monitor credit risk while maintaining sufficient capital and liquidity for banking sector resilience;

12. Stresses the timely, full and faithful implementation of the Basel III standards to strengthen resilience and competitiveness; deplores deviations and calls on the Commission to review equivalence decisions with jurisdictions not implementing those standards;

13. Regrets the increasing number of bank branch closures, affecting vulnerable and peripheral communities; underlines smaller banks’ role in access to services to households; notes with concern AI-related job losses; stresses the need to safeguard job quality, fair conditions and equitable banking access;

14. Acknowledges crypto-assets’ risks and opportunities; calls for consistent supervision to ensure that innovation serves the public; calls for EU and national authorities to monitor exposures, address speculative risks, combat financial crime and protect consumers;

Resolution

15. Welcomes the crisis management and deposit insurance (CMDI) reform for coherent crisis management and deposit insurance, strengthening stability, protecting savings and taxpayers; emphasises the need for flexibility for smaller banks and for the authorities to have effective tools to ensure a resilient and socially responsible Banking Union;

16. Stresses that, in the event of bank failures, shareholders, creditors or industry-funded mechanisms should be held accountable first, and public funds should only be used as a last resort, in line with fiscal responsibility, social justice and market discipline;

17. Recalls that a sufficient minimum requirement for own funds and eligible liabilities (MREL) is essential for a credible resolution framework and for providing authorities the flexibility to apply appropriate resolution strategies in a crisis;

18. Recalls that banks must continue essential services after resolution; stresses the need for a clear, predictable framework that protects depositors and supports smaller clients and SMEs;

19. Welcomes the Single Resolution Fund as a fully mutualised, industry-funded safety net; reiterates the call for full ratification of the ESM Treaty amendment to strengthen credibility, resolvability and euro area resilience;

Deposit insurance

20. Reaffirms its strong commitment to the creation of a fully fledged EDIS as the third and final and essential pillar of the Banking Union;

21. Welcomes the adoption of the CMDI package as a positive step that strengthens national deposit guarantee schemes, reinforces confidence in the banking sector and enhances the operational and legal conditions for moving towards common EU protection for depositors and taxpayers; recalls this Committee’s 2024 position on EDIS; strongly urges the Council to advance negotiations;

°

° °

22. Instructs its President to forward this resolution to the Council, the Commission, the European Central Bank, the Single Resolution Board and the European Banking Authority.

EXPLANATORY STATEMENT

This report covers the developments of the Banking Union in 2025.