PARIS, Jan. 22 (Xinhua) — Chiefs of German and French banks federations on Monday issued a joint call to focus on banking reforms in the euro zone, notably in France and Germany, Europe’s leading powers that lead the momentum in the bloc.
In the statement, Jean-Laurent Bonnafe, president of French Banking Federation and Hans-Walter Peters, president of the Association of German Banks, hailed the Elysee Treaty, Franco-German treaty of friendship, but noted that it “highlights the challenges which require the Franco-German motor more urgently than ever if they are to be overcome.”
With the aim, they “call for the further development of the European Economic and Monetary Union,” arguing that “banks have a key role to play … especially as sources of finance for businesses, players in the digital internal market and providers of cross-border financial services or in green finance.”
Bonnafe and Peters believed when deepening the Banking Union, it is important that further risk reduction measures have to be implemented before further risk sharing mechanisms can be installed.
Besides, they recommended greater standardisation and harmonisation mainly in the areas of securitisation, insolvency law and prospectus in order to enhance integration of Europe’s capital markets.
“An adequate transposition in Europe of the Basel agreement in order to better reflect European banking practices and EU low-risk asset profiles,” was, according to them, necessary to help realize the Capital Markets Union’s objectives.
The words came after French President Emmanuel Macron and German Chancellor Angela Merkel vowed to “explore ways to more effectively promote the common France-Germany interests … within and outside the European Union.”
The Elysee Treaty signed on Jan. 22, 1963 is considered as a milestone of two countries’trust-based cooperation.