BETA

17 Amendments of Luigi MORGANO related to 2018/0060(COD)

Proposal for a regulation
Recital 9

(9) A different calendar should be applied depending on whether the exposure is non-performing because the obligor is past due more than 90 days or if it is non- performing for other reasons. ~~In the first case, the minimum coverage requirement~~The prudential backstop should be ~~higher~~applied ast the parent-institution ~~has not received any payment from the obligor over a long period. In the second case, there should be no full coverage requirement as there is still some repayment or a higher probability of repayment~~portfolio level of prudential consolidation of own funds.

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1

Regulation (EU) No 575/2013
Article 36 – paragraph 1 – point m (new)

(m) besides exposures purchased by a specialised debt restructurer which were non-performing at the time of purchase, the applicable amount of insufficient coverage for non-performing exposures.;

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) No 575/2013
Article 47a – paragraph 7 a (new)

7 a. For the purpose of Article 36(m), a ‘specialised debt restructurer’ is an institution that complies with the following conditions during the preceding financial year, on a consolidated basis where applicable: (i) the management body of the institution has implemented a clear and effective governance framework and internal decision process specifically for the purchase of exposures from other institutions; (ii) the book value of its own originated loans does not exceed 20% of the aggregate book value of its loans, including purchased performing and non- performing exposures.

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) No 575/2013
Article 47a – paragraph 7 b (new)

7 b. The European Banking Authority (EBA) shall develop draft regulatory technical standards to specify further the conditions under which an institution may be considered a specialised debt restructurer and the conditions set out in Article 47a(7a).

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) No 575/2013
Article 47c – paragraph 1 – subparagraph 1 – introductory part

For the purposes of Article 36(1)(m), institutions shall determine the applicable amount of insufficient coverage for non- performing exposures to be deducted from Common Equity Tier 1 items by subtracting the amounts determined in point (b) and (b a) from the amount determined in point (a):

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) No 575/2013
Article 47c – paragraph 1 – subparagraph 1 – point a – introductory part

(a) at the parent-institution portfolio level of prudential consolidation of own funds, the sum of:

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) No 575/2013
Article 47c – paragraph 1 – subparagraph 1 – point b – introductory part

(b) at the parent-institution portfolio level of prudential consolidation of own funds, the sum of the following items, provided they relate to a ~~specific~~n exposure classified as non- performing ~~exposure~~after the entry into force of the regulation:

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) No 575/2013
Article 47c – paragraph 1 – subparagraph 1 – point b – point ii

(ii) ~~additional value adjustments in accordance with Articles 34 and 105~~own funds deductions stemming from the calculation of RWA for defaulted assets;

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) No 575/2013
Article 47c – paragraph 1 – subparagraph 1 – point b – point iii

(iii) ~~other own funds reduction~~partial write-offs;

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) No 575/2013
Article 47c – paragraph 1 – subparagraph 1 – point b – point iv

(iv) for institutions calculating risk- weighted exposure amounts using the Internal Ratings Based Approach, the absolute value of the amounts deducted pursuant to point (d) of Article 36(1) which relate to non-performing exposures, where the absolute value attributable to each non-performing exposure is determined by multiplying the amounts deducted pursuant to point (d) of Article 36(1) by the contribution of the expected loss amount for the non- performing exposure to total expected loss amounts for defaulted or non-defaulted exposures, as applicable.deleted

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) 575/2013
Article 47c – paragraph 1 – subparagraph 1 – point b a (new)

(b a) at the parent-institution portfolio level of prudential consolidation of own funds, the sum of the following items, multiplied by the ratio between total non- performing exposures, classified after the entry into force of the regulation, and total Performing and Non-Performing exposures: (i) additional value adjustments in accordance with Articles 34 and 105; (ii) other own funds reductions; (iii) for institutions calculating risk- weighted exposure amounts using the Internal Ratings Based Approach, the absolute value of the amounts deducted pursuant to point (d) of Article 36(1) which relate to non-performing exposures.

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) No 575/2013
Article 47c – paragraph 1 – subparagraph 2

The secured part of a non-performing exposure is the part of such exposure which is covered by: a ~~funded credit protection or unfunded~~) all types of immovable property collateral; b) other eligible collateral or other forms of credit risk protection ~~in accordance with~~that fulfil the criteria of credit risk mitigation set out in Part Three, Title II, Chapters 3 and 4 of ~~Title II~~the CRR, irrespective whether an institution uses the standardised approach or the Internal Ratings Based Approach.

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 2

Regulation 575/2013/EU
Article 47c – paragraph 1 – subparagraph 2 a (new)

During three years after the exposure is firstly defined as in forbearance pursuant to article 47a(6), and provided that the obligor continues to meet all payment obligations, the factors as determined by paragraphs 2 and 3 of the present article shall not increase.

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) No 575/2013
Article 47c – paragraph 2 – point a

(a) 0.35 for the unsecured part of a non-performing exposure to be applied during the period between one year and two years following its classification as non-performing, where the obligor is past due more than 90 days;deleted

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) No 575/2013
Article 47c – paragraph 2 – point b

(b) 0.28 for the unsecured part of a non-performing exposure to be applied during the period between one year and two years following its classification as non-performing, where the obligor is not past due more than 90 days;deleted

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) No 575/2013
Article 47c – paragraph 2 – point c

(c) 1 for the unsecured part of a non- performing exposure to be applied as of the first day of the ~~second~~fifth year following its classification as non-performing~~, where the obligor is past due more than 90 days~~;

2018/11/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) No 575/2013
Article 47c – paragraph 2 – point d

(d) 0.8 for the unsecured part of a non-performing exposure to be applied as of the first day of the second year following its classification as non- performing, where the obligor is not past due more than 90 days;deleted

2018/11/23
Committee: ECON