EUU, Alm.del - 2016-17 - Bilag 335: Brev fra Europaudvalget til Kommissær Dombrovskis vedr. Basel IV og det danske realkreditsystem

Europaudvalget 2016-17
EUU Alm.del Bilag 335
Offentligt

Valdis Dombrovskis

Vice-President of the European Commission

in charge of the Euro and Social Dialogue,

Financial Stability,

Financial Services and Capital Markets Union

European Commission

Rue de la Loi 200

B – 1049 Bruxelles

Belgium

Basel Committee’s propopsal on setting a permanent capital floor

Parliament of Denmark

The International Secretariat

Christiansborg

DK-1240 Copenhagen K

Tel. +45 33 37 55 00

Fax +45 33 32 85 36

www.ft.dk

[email protected]

27 January 2017

Ref.

Dear

Mr. Dombrovskis

In February 2016, the Danish Parliament’s European Affairs Committee sent a

letter to your predecessor Commissioner Hill expressing concern regarding

the work that is still taking place in the Basel Committee on Banking Supervi-

sion on the so-called Basel IV standards. On behalf of the European Affairs

Committee which represents all political parties within the Danish Parliament I

would like to share this concern regarding the Basel IV standards with you be-

fore the Basel Committee is concluding this work – possibly already in the

course of the next two months.

In particular, the Basel Committee’s ambition of setting a new standardised

minimum level of capital requirements for financial institutions is causing con-

cern in the Danish Parliament. The Committee has suggested introducing a

permanent capital floor based on standardised approaches.

This will include among other things the Danish mortgage credit system,

which over decades has proven to be a stable and successful framework for

providing mortgage loans with a very low risk. Historically the Danish mort-

gage credit system has experienced very low losses and its covered bonds

have never led to credit losses for investors – not even during the recent fi-

nancial crisis.

The European Affairs Committee is concerned that the Basel Committee’s

proposal on setting a permanent capital floor may jeopardize low risk banking

business such as the Danish mortgage credit system by imposing considera-

ble and unjustified financial burdens on these financial institutions.

Let me therefore on behalf of the European Affairs Committee urge you to

maintain the European Union’s risk sensitive approach to capital require-

ments, when implementing the Basel Committees final recommendations into

Contact

Morten Knudsen

Principal EU-Advisor

Dir. tel. +45 3337 3695

[email protected]

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EUU, Alm.del - 2016-17 - Bilag 335: Brev fra Europaudvalget til Kommissær Dombrovskis vedr. Basel IV og det danske realkreditsystem

EU legislation. I believe risk sensitivity is well suited for our many different lo-

cal business models in the European Union. Otherwise, I fear we risk creating

unnecessary obstacles for our financial institutions’ ability to finance economic

growth in the real economy of Europe.

Finally, I would like to thank you for meeting with the European Affairs Com-

mittee in the Danish Parliament on 2 February. We are looking forward to con-

tinuing discussions with you on these very important issues during your visit.

Yours sincerely

Erik Christensen,

Chairman of the European Affairs Committee of the Danish Parliament

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