[ParlTrack]

Marco ZANNI, Bernard MONOT, Gerolf ANNEMANS

Proposal for a regulation
Article 1 – paragraph 1 – point 39 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 1 – point d

(d) a leverage ratio of ~~3%..~~ 9% in 2025; The leverage ratio will be set at 3% in 2019 and rise in annual steps to reach 9% by 2025. Institutions shall set their leverage ratio as follows: 4% by 2020; 5% by 2021; 6% by 2022; 7% by 2023; 8% by 2024; 9% by 2025.

2018/02/05
Committee: ECON

Marco ZANNI, Bernard MONOT, Gerolf ANNEMANS

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 94 – paragraph 3 – point a – point i

(i) positions concerning foreign- exchange ~~and commodities~~;

2018/02/05
Committee: ECON

Marco ZANNI, Bernard MONOT, Gerolf ANNEMANS

Proposal for a regulation
Article 1 – paragraph 1 – point 52 a (new)

Regulation (EU) No 575/2013
Article 124 – paragraph 2

(52a) In Article 124, paragraph 2 is replaced by the following: "(2) Based on the data collected under Article 101, and any other relevant indicators, the competent authorities shall periodically, and at least annually, assess whether the risk-weight of 310 % or 25 % for exposures secured by mortgages on residential property referred to in Article 125 and the risk weight of 540 % for exposures secured on commercial immovable property referred to in Article 126 located in their territory are appropriately based on: (a) the loss experience of exposures secured by immovable property; (b) forward-looking immovable property markets developments; Competent authorities may set a higher risk weight or stricter criteria than those set out in Article 125(2) and Article 126(2), where appropriate, on the basis of financial stability considerations. For exposures secured by mortgages on residential property, the competent authority shall set the risk weight at a percentage from 3510 % to 150 %. For exposures secured on commercial immovable property, the competent authority shall set the risk weight at a percentage from 540 % through 150 %, Within these ranges, the higher risk weight shall be set based on loss experience and taking into account forward-looking markets developments and financial stability considerations. Where the assessment demonstrates that the risk weights set out in Article 125(2) and Article 126(2) do not reflect the actual risks related to one or more property segments of such exposures, fully secured by mortgages on residential property or on commercial immovable property located in one or more parts of its territory, the competent authorities shall set, for those property segments of exposures, a higher risk weight corresponding to the actual risks. The competent authorities shall consult EBA on the adjustments to the risk weights and criteria applied, which will be calculated in accordance with the criteria set out in this paragraph as specified by the regulatory technical standards referred to in paragraph 4 of this Article. EBA shall publish the risk weights and criteria that the competent authorities set for exposures referred to in Articles 125, 126 and 199(1)(a)." ~~(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32013R0575&rid=1)~~Or. en

2018/02/05
Committee: ECON

Marco ZANNI, Bernard MONOT, Gerolf ANNEMANS

Proposal for a regulation
Article 1 – paragraph 1 – point 52 a (new)

Regulation (EU) No 575/2013
Article 125 – paragraph 1 – point a

(52b) In paragraph 1 of Article 125, point (a) is replaced by the following: "(a) exposures or any part of an exposure fully and completely secured by mortgages on residential property which is or shall be occupied or let by the owner, or the beneficial owner in the case of personal investment companies, shall be assigned a risk weight of ~~35 %;"~~ 10% or 25% in accordance with the conditions of paragraph 2;" Or. en (http://eur-lex.europa.eu/legal- content/EN/TXT/HTML/?uri=CELEX:32013R0575&from=EN)

2018/02/05
Committee: ECON

Marco ZANNI, Bernard MONOT, Gerolf ANNEMANS

Proposal for a regulation
Article 1 – paragraph 1 – point 52 a (new)

Regulation (EU) No 575/2013
Article 125 – paragraph 2 – point d

(52a) In paragraph 2 of Article 125, point (d) is replaced by the following: "(d) unless otherwise determined under Article 124(2), the part of the loan to which the 3510 % risk weight is assigned does not exceed 80 % of the market value of the property in question or 80 % of the mortgage lending value of the property in question in those Member States that have laid down rigorous criteria for the assessment of the mortgage lending value in statutory or regulatory provisions. ; the part of the loan which exceeds 80% of the market value of the property in question or 80% of the mortgage lending value of the property in question receives a risk weighting of 25%." Or. en (http://eur-lex.europa.eu/legal- content/EN/TXT/HTML/?uri=CELEX:32013R0575&from=EN)

2018/02/05
Committee: ECON

Marco ZANNI, Bernard MONOT, Gerolf ANNEMANS

Proposal for a regulation
Article 1 – paragraph 1 – point 83

Regulation (EU) No 575/2013
Article 325 – paragraph 1 – point b

(b) from [date of application of this Regulation], the internal model approach set out in Chapter 1b of this Title only for those positions assigned to trading desks for which the institution has been granted a permission by competent authorities to use that approach as set out in Article 325ba;deleted

2018/02/05
Committee: ECON

Marco ZANNI, Bernard MONOT, Gerolf ANNEMANS

Proposal for a regulation
Article 1 – paragraph 1 – point 83

Regulation (EU) No 575/2013
Article 325 – paragraph 1 – point d

(d) until [date of application of this Regulation], the simplified internal model approach set out in Chapter 5 of this Title for those risk categories for which the institution has been granted the permission in accordance with Article 363 to use that approach in. After [date of application of this Regulation], institutions shall no longer use the simplified internal model approach set out in Chapter 5 to determine the own funds requirements for market risks.deleted

2018/02/05
Committee: ECON

Marco ZANNI, Bernard MONOT, Gerolf ANNEMANS

Proposal for a regulation
Article 1 – paragraph 1 – point 83

Regulation (EU) No 575/2013
Article 325 – paragraph 3

3. An institution may use in combination the approaches set out in points (a) and (b) of paragraph 1 on a permanent basis within a group provided that the own funds requirements for market risks calculated under the approach set out in point (a) does not exceed 90% of the total own funds requirements for market risks. Otherwise, the institution shall use the approach set out in point (a) of paragraph 1 for all the positions subject to the own funds requirements for market risks.deleted

2018/02/05
Committee: ECON

Marco ZANNI, Bernard MONOT, Gerolf ANNEMANS

Proposal for a regulation
Article 1 – paragraph 1 – point 83

Regulation (EU) No 575/2013
Article 325 – paragraph 4

~~4. An institution may use in combination the approaches set out in points (c) and (d) of paragraph 1 on a permanent basis within a group in accordance with Article 363.~~deleted

2018/02/05
Committee: ECON

Marco ZANNI, Bernard MONOT, Gerolf ANNEMANS

Proposal for a regulation
Article 1 – paragraph 1 – point 83

Regulation (EU) No 575/2013
Article 325 – paragraph 5

~~5. An institution shall not use either of the approaches set out in points (a) and (b) of paragraph 1 in combination with the approach set out in point (c).~~deleted

2018/02/05
Committee: ECON

Marco ZANNI, Bernard MONOT, Gerolf ANNEMANS

Proposal for a regulation
Article 1 – paragraph 1 – point 83

Regulation (EU) No 575/2013
Article 325 – paragraph 6

6. Institutions shall not use the approach set out in point (b) of paragraph 1 for instruments in the trading book that are securitisation positions or positions included in the CTP as defined in paragraphs 7 to 9 of Article 104.deleted

2018/02/05
Committee: ECON

Marco ZANNI, Bernard MONOT, Gerolf ANNEMANS

Proposal for a regulation
Article 1 – paragraph 1 – point 83

Regulation (EU) No 575/2013
Article 325 – paragraph 7

7. For the purpose of calculating the own funds requirements for CVA risks using the advanced method set out in Article 383, institutions may continue to use the simplified internal model approach set out in Chapter 5 of this Title after [date of application of this Regulation] at which date institutions shall cease to use that approach for the purposes of calculating the own funds requirements for market risks.deleted

2018/02/05
Committee: ECON

Marco ZANNI, Bernard MONOT, Gerolf ANNEMANS

Proposal for a regulation
Article 1 – paragraph 1 – point 83

Regulation (EU) No 575/2013
Article 325 – paragraph 8

EBA shall develop regulatory technical standards to specify in more detail how institutions shall determine the own funds requirements for market risks for non- trading book positions subject to foreign exchange risk or commodity risk in accordance with the approaches set out in points (a) ~~and (b) of paragraph 1~~.

2018/02/05
Committee: ECON

Marco ZANNI, Bernard MONOT, Gerolf ANNEMANS