18 Amendments of Fabio Massimo CASTALDO related to 2023/0112(COD)
Amendment 32 #
Proposal for a directive
Recital 1 a (new)
Recital 1 a (new)
(1a) The objective of this Directive is to better safeguard taxpayers’ money and establish new systemic mechanisms for addressing situations of potential insolvency of some financial institutions not covered by the existing resolution framework. That framework is designed to curtail the economic burden on society by reducing the overall costs associated with bank failures. The use of taxpayers’ money should, with the introduction of a new framework, be significantly reduced in order to ensure that the resolution financing arrangement is more effectively used.
Amendment 61 #
Proposal for a directive
Recital 11
Recital 11
(11) The assessment of whether the resolution of an institution or entity is in the public interest should also reflect, to the extent possible, the difference between, on the one hand, funding provided through industry-funded safety nets (resolution financing arrangements or DGSs) and, on the other hand, funding provided by Member States from taxpayers’ money. Funding provided by Member States bears a higher risk of moral hazard and a lower incentive for market discipline. As the public interest assessment is an ad hoc decision, it also lacks transparency and has negative consequences for the level playing field in the internal market. Therefore, when assessing the objective of minimising reliance on extraordinary public financial support, resolution authorities should find funding through the resolution financing arrangements or the DGS preferable toand funding through an equal amount of resources from the budget of Member States should be considered only under extraordinary circumstances.
Amendment 97 #
Proposal for a directive
Recital 31
Recital 31
Amendment 212 #
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2014/59/EU
Article 27 – paragraph 1a
Article 27 – paragraph 1a
Amendment 264 #
Proposal for a directive
Article 1 – paragraph 1 – point 17 – point c
Article 1 – paragraph 1 – point 17 – point c
Directive 2014/59/EU
Article 32 – paragraph 5 – subparagraph 1
Article 32 – paragraph 5 – subparagraph 1
For the purposes of paragraph 1, point (c), a resolution action shall be treated as in the public interest where that resolution action is necessary for the achievement of, and is proportionate to, one or more of the resolution objectives referred to in Article 31 considered from an holistic perspective and where winding up of the institution under normal insolvency proceedings would not meet those resolution objectives more effectively. to the same extent.
Amendment 276 #
Proposal for a directive
Article 1 – paragraph 1 – point 17 – point c
Article 1 – paragraph 1 – point 17 – point c
Directive 2014/59/EU
Article 32 – paragraph 5 – subparagraph 2
Article 32 – paragraph 5 – subparagraph 2
Member States shall ensure that when carrying out the assessment referred to in the first subparagraph, the resolution authority, based on the information available to it at the time of that assessment, considers and compares all extraordinary public financial support that can reasonably be expected to be granted to the institution, both in the event of resolution and in the event of winding up in accordance with the applicable national law.;
Amendment 281 #
Proposal for a directive
Article 1 – paragraph 1 – point 17 – point c
Article 1 – paragraph 1 – point 17 – point c
Directive 2014/59/EU
Article 32 – paragraph 5a (new)
Article 32 – paragraph 5a (new)
5 a. By ... [three years after the date of entry into force of this amending Directive], EBA shall provide a report on the scope and application of paragraph 5 across the Union. That report shall be shared with the Commission in order to assess the effectiveness of the measures outlined in paragraph 5 and their impact on the level playing field. Based on the outcomes of the review, proposals or guidelines may be developed with the aim of enhancing market efficiency and levelling the playing field among Member States.”
Amendment 285 #
Proposal for a directive
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
Directive 2014/59/EU
Article 32b – paragraph 1
Article 32b – paragraph 1
1. Member States shall ensure that, when a resolution authority determines that an institution or entity referred to in Article 1(1), points (b), (c) or (d), meets the conditions laid down in Article 32(1), points (a) and (b), but not the condition laid down in Article 32(1), point (c), the relevant national administrative or judicial authority has the power to initiate without delay the procedure to wind up the institution or entity in an orderly manner in accordance with the applicable national law. The EBA shall issue guidelines clarifying the conditions associated with that orderly manner.
Amendment 291 #
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2014/59/EU
Article 32c – title
Article 32c – title
Amendment 293 #
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2014/59/EU
Article 32c – paragraph 1 – introductory part
Article 32c – paragraph 1 – introductory part
1. Member States shall ensure that extraordinary public financial support outside of resolution action or of the winding-up according to the applicable procedures may be granted to an institution or entity as referred to in Article 1(1), points (b), (c) or (d), on an exceptional basis only in one of the following cases and provided that the extraordinary public financial support complies with the conditions and requirements established in the Union State aid framework:
Amendment 297 #
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2014/59/EU
Article 32c – paragraph 1 – point a – introductory part
Article 32c – paragraph 1 – point a – introductory part
(a) where, to remedy a sverious y large scale disturbance in the economy of a Member State or to preserve financial stability, the extraordinary where that is negatively affected by systemic events of a large scale, the public financial support takes any of the following extraordinary forms:
Amendment 306 #
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2014/59/EU
Article 32c – paragraph 1 – point b
Article 32c – paragraph 1 – point b
(b) where the extraordinary public financial support takes the form of an intervention by a deposit guarantee scheme to preserve the financial soundness and long-term viability of the credit institution in compliance with the conditions set out in Articles 11a and 11b of Directive 2014/49/EU, provided that none of the circumstances referred to in Article 32(4) are present;
Amendment 310 #
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2014/59/EU
Article 32c – paragraph 1 – point c
Article 32c – paragraph 1 – point c
(c) where the extraordinary public financial support takes the form of an intervention by a deposit guarantee scheme in the context of the winding up of an institution pursuant to Article 32b and in accordance with the conditions set out in Article 11(5) of Directive 2014/49/EU;
Amendment 313 #
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2014/59/EU
Article 32c – paragraph 1 – point d
Article 32c – paragraph 1 – point d
(d) where the extraordinary public financial support in response to a large- scale systemic threat to financial stability, whether ongoing or potential, takes the form of State aid within the meaning of Article 107(1) TFEU granted in the context of the winding up of the institution or entity pursuant to Article 32b of this Directive, other than the support granted by a deposit guarantee scheme pursuant to Article 11(5) of Directive 2014/49/EU.
Amendment 363 #
Proposal for a directive
Article 1 – paragraph 1 – point 31 – point -a (new)
Article 1 – paragraph 1 – point 31 – point -a (new)
Directive 2014/59/EU
Article 45c – paragraph 2 – subparagraph 2
Article 45c – paragraph 2 – subparagraph 2
(-a) in paragraph 2, the second subparagraph is replaced by the following: Where the resolution plan provides that the entity is to be wound up under normal insolvency proceedings or other equivalent national procedures, the resolution authority limits the requirement referred to in Article 45(1) for that entity, so that it does not exceed an amount sufficient to absorb losses in accordance with point (a) of the first subparagraph, except in extraordinary cases of the need for additional buffer. The buffer in any case shall be lower than the recapitalisation amount as referred to in paragraph 3.
Amendment 369 #
Proposal for a directive
Article 1 – paragraph 1 – point 32
Article 1 – paragraph 1 – point 32
Directive 2014/59/EU
Article 45ca – paragraph 1 – introductory part
Article 45ca – paragraph 1 – introductory part
1. When applying Article 45c to a resolution entity whose preferred resolution strategy envisages primarily the use of the sale of business tool or the bridge institution tool and its exit from the market, the resolution authority shallmay set thea recapitalisation amount provided in Article 45c(3), that may be higher or equal to zero, in a proportionate way on the basis of the following criteria, as relevant:
Amendment 372 #
Proposal for a directive
Article 1 – paragraph 1 – point 32
Article 1 – paragraph 1 – point 32
Directive 2014/59/EU
Article 45ca – paragraph 1 – point a
Article 45ca – paragraph 1 – point a
(a) the resolution entity’s size, resolution entity’s ability to access financial market and DGS funds, business model, funding model and risk profile, and the depth of the market in which the resolution entity operates;
Amendment 393 #
Proposal for a directive
Article 1 – paragraph 1 – point 32
Article 1 – paragraph 1 – point 32
Directive 2014/59/EU
Article 45ca – paragraph 2
Article 45ca – paragraph 2