Enria on calendar provisioning
Today at 1 pm the Senate Finance Commission will audition by videoconference Dr. Andrea Enria , former president of the EBA (i.e. of the EBA: European Banking Authority ), a position in which he is succeeded by José Manuel Campa , and currently president of the SSM ( Single Supervisory Mechanism , single supervisory mechanism, also known as the supervisory board of the ECB, not to be confused with the ESFS, European System of Financial Supervision , which collects EBA – see under ABE, ESMA and EIOPA , nor with the EFSF, European Financial Stability Facility , which gave us little satisfaction, at least if commensurate with the money we gave it), position (that of president of the SSM) in which he succeeded Danièle Nouy , the one who, with her infamous Addendum to the Guidelines on non-performing loans issued by the ECB introduced the infamous calendar provisioning , that is a schedule of provisions ( provisioning ) that banks were forced to do to cover, in the framework a rigid schedule (calendar), their exposures (loans) Impaired (ie those in which the other party – the debtor – was in difficulty).
The calendar provisioning was hailed at the time by the PD as a great success, in particular a personal success of the then president of the ECON Commission Roberto Gualtieri: " an important step towards reducing the risk of the banking sector " (ie towards the sun of European future). We were always skeptical on the subject for a very simple reason: even these provisions rules, like the budget rules based on the output gap , were pro-cyclical, in particular because, by forcing banks to make additional provisions when companies went into crisis, they prevented banks to provide credit when it was most needed, that is, precisely, when the economic fabric was in crisis. With respect to these positions of ours, the European and above all Italian authorities have always been in denial (as they say today: and at this point, if others say so, we say so too).
But now, for a change, the PD returns to shed a tear of circumstance at the scene of the crime against common sense, incardinating in the Finance Commission an " Deal assigned on the issue of calendar provisioning ", which makes us smile a little, because on that the question is their fingerprints, not those of those who, like us, have always opposed in parliamentary proceedings, highlighting the absurdity of certain rules ( here an example). A hint of resipiscence would be appreciated, like the one, completely unpublished, I brought yesterday, on the table of other rules, by Erik Fossing Nielsen .
It is not to humiliate our current allies that we ask them to admit that they have not understood, but only to be sure that they now understand, and therefore do not waste us and the country any further time.
The fact is (and this is not a good indication) that the request to audit the President of one of the leading European banking authorities, in particular the one that introduced this legislation which risks "heavily penalizing the national banking system" (Pittella dixit) , was not made by the pro-Europeans, but by the Europeans, as the minutes succinctly report .
And this, of course, is not a good start on the road to national reconciliation and the common defense of the country's interests: subordination and deference, combined with little emphasis on protecting the prerogatives of Parliament (because so much shyness and reticence, because this metus reverentialis in turning to institutions that, until proven otherwise, are not a totem, but exist to be at the service of the citizen?), are not a good viaticum for what one sees it remains, to the point where things have been left to arrive, a mission impossible .
The hearing should be live on the web (it would be strange and serious if it wasn't) on the Senate channel, which you can find here .
This is a machine translation of a post (in Italian) written by Alberto Bagnai and published on Goofynomics at the URL https://goofynomics.blogspot.com/2021/07/enria-sul-calendar-provisioning.html on Tue, 06 Jul 2021 08:04:00 +0000. Some rights reserved under CC BY-NC-ND 3.0 license.