All the risks of the ECB calendar provisioning for banks. Giacché’s hearing
The introductory statement to the European Parliament held on 15 June by Vladimiro Giacché, former president of the CER and since last July Head of Communications, Studies and Strategic Marketing of Banca del Fucino
"We need the temporary amendment of Regulation 2019/630 of the Parliament and of the Council of 17 April 2019 regarding the minimum coverage of losses on NPE (Non-Performing Exposures): it is necessary to delay the rules on capital provisioning by two years (in other terms, the rules on the gradual coverage of impaired loans should be deferred for 24 months), – a more substantial delay than the new definition of default would also be necessary (the new agreed date, 1.1.2021, is still too close). Otherwise, as underlined in a recent draft opinion by the European Economic and Social Committee, banks would be forced to abide by "rules that could ultimately exert enormous pressure on capital or at least discourage banks from issuing loans in a 'economy in difficulty, in order to avoid negative repercussions on capital ”.
This is what V ladimiro Giacché , former president of CER, and since July 1st last July Head of Communications, Studies and Strategic Marketing of Banca del Fucino , said during a hearing in the European Parliament.
If after the intervention in the Chambers by Mediobanca CEO, Alberto Nagel, the risks of applying calendar provisioning emerged clearly ("I 'm a nuclear bomb of the ECB ", was Nagel's key comment), and on The banks meeting in the ABI also expressed their opinion on the basis of the general manager Giovanni Sabatini, since he had already indicated risks and problems on the rules for covering losses on NPE in June.
An issue that is not at all important, however, according to the Minister of Economy, Roberto Gualtieri ( here the article of Start with the enthusiastic declarations of Gualtieri when he was rapporteur at the European Parliament of the provision on the matter ).
THE FULL TEXT OF THE AUDITION TRANSLATED BY VLADIMIRO GIACCHÉ
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/tutti-i-rischi-del-calendar-provisioning-bce-per-le-banche-laudizione-di-giacche/ on Sat, 19 Sep 2020 11:20:33 +0000.