On Banking Union – annual report 2025
ECON-PR-779660
Committee on Economic and Monetary Affairs · Rapporteur: Evelyn Regner
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This draft report on the Banking Union annual report 2025 welcomes progress with the Single Supervisory Mechanism and the Single Resolution Mechanism, and calls for the full completion of the Banking Union, including a fully fledged European Deposit Insurance Scheme.¶ It calls for full implementation of Basel III, stronger climate-related supervision, and a digital euro, while regretting gender imbalance and bank branch closures.¶¶¶ It stresses accountability in bank failures, the need for a sufficient minimum requirement for own funds and eligible liabilities, and continued essential services after resolution.¶¶¶ It reaffirms commitment to a fully fledged European Deposit Insurance Scheme and urges the Council to advance negotiations.¶¶
Committee position. The rapporteur proposes a resolution that welcomes progress, calls for completion of the Banking Union with a fully fledged EDIS, full Basel III implementation, and various supervisory and policy actions.¶¶¶
Key points
- Calls for full and swift completion of the Banking Union, including a fully fledged European Deposit Insurance Scheme, and stresses support for an inclusive and sustainable financial system aligned with social cohesion and the EU Green Deal.¶
- Calls on the Commission to prioritise completion of the Banking Union and Savings and Investment Union, highlighting their importance for citizens, SMEs and the real economy.¶
- Calls for stronger supervisory guidance to align financial institutions with the EU's climate objectives.¶
- Welcomes progress on the digital euro and its potential to complement cash while enhancing the EU's financial sovereignty.¶
- Regrets persistent gender imbalance in financial institutions and calls for effective diversity strategies and gender equality in supervisory and investment frameworks.¶
- Emphasises that institutions receiving State aid must face strict limits on dividends, buy-backs and variable remuneration.¶
- Calls on the Commission to develop guidelines for a targeted bank solidarity contribution reflecting recent profits.¶
- Welcomes AMLA's role in fighting money laundering and terrorist financing, and calls for consistent implementation and enhanced cooperation.¶
- Stresses that simplification must not weaken prudential, consumer protection or stability standards, and calls for a common data dictionary and request repository.¶
- Calls for timely, full and faithful implementation of Basel III standards and review of equivalence decisions with jurisdictions not implementing them.¶
- Regrets increasing bank branch closures and AI-related job losses, stressing the need to safeguard job quality and equitable banking access.¶
- Stresses that in bank failures, shareholders, creditors or industry-funded mechanisms should be held accountable first, and public funds only as a last resort.¶
Who is affected
- EU banks and financial institutions: must implement Basel III, face potential bank solidarity contributions, and adhere to diversity and climate-related supervisory expectations.¶¶¶
- Smaller banks and their customers: benefit from flexibility in crisis management and continued access to essential services after resolution.¶¶¶
- Depositors and taxpayers: protected by the crisis management and deposit insurance reform and the aim of avoiding taxpayer-funded bailouts.¶¶
- Women-led firms: should gain better access to finance through gender equality measures.¶
Figures and deadlines
- Aggregate Common Equity Tier 1 ratio of SSM banks reached 16.12 % in Q2 2025.¶
- Return on equity was 10.11 % in Q2 2025.
- Non-performing loans decreased to 2.22 %.
- Stage 2 loans stand at 9.59 %.