Activities of Bernd LUCKE related to 2018/0043(COD)
Reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council on the issue of covered bonds and covered bond public supervision and amending Directive 2009/65/EC and Directive 2014/59/EU PDF (675 KB) DOC (100 KB)
Amendments (6)
Amendment 95 #
Proposal for a directive
Article 3 – paragraph 1 – point 1
Article 3 – paragraph 1 – point 1
(1) 'covered bond' means a debt obligation issued under public supervision according to Article 18 by a credit institution and swhich is a dual recoured by a cover pool of assets which covered bond investors have direct recourse to as preferred creditorsse instrument according to Article 4, which is bankruptcy remote according to Article 5, for which the assets in the cover pool are segregated according to Article 12, and which is collateralised by eligible assets according to Article 6 or Article 6a;
Amendment 152 #
Proposal for a directive
Article 6 a (new)
Article 6 a (new)
Article 6 a Cover assets for ordinary covered bonds 1. Member States may allow the issuance of covered bonds secured by high quality cover assets not referred to as eligible in points (a) to (g) of Article 129(1) of Regulation (EU) No 575/2013. In this case, Member States shall require that cover assets provide the credit institution issuing covered bonds with claims for the payment of a clearly determined amount of money as set out in paragraph 2 and secured by collateral assets as set out in paragraph 3. Member States shall also require that the choice of cover assets mitigates cover pool risk as set out in paragraph 4. 2. Member States shall lay down rules ensuring that the claim for payment referred to in paragraph 1 meets the following legal requirements: (a) Each claim is collateralised by assets for which a public register records ownership and collateral rights or is a loan to a public undertaking as defined in Article 2(b) of Commission Directive 2006/111/EC. (b) Each collateralised claim is secured by a legally established mortgage, charge, lien or other guarantee and each of these is enforceable. (c) the mortgage, charge, lien or guarantee referred to in (b) enable the credit institution issuing covered bonds to receive the payment of the claim in due time and at reasonable cost. For the purposes of points (a) and (b), Member States shall lay down rules ensuring the prompt filing or registration of mortgages, charges, liens or guarantees on the claims in the cover pool. For the purposes of points (b) and (c), Member States shall ensure that credit institutions issuing covered bonds assess both the enforceability of claims and the expected length of legal proceedings before including such claims in the cover pool. 3. Member States shall lay down rules ensuring that the collateral assets referred to in paragraph 1 meet either of the following requirements: (a) for physical assets either the market or the mortgage lending value can be determined or, if this is not possible, the asset is valued by rules laid down by the Member State; (b) for assets in the form of exposures to a counterparty, the counterparty's safety and soundness is inferred from its tax- raising powers or from being subject to either public supervision or an on-going credit assessment by an independent professional third party. For the purposes of this point, the rating by a nominated ECAI shall be regarded as an independent third party's credit assessment. For the purposes of the asset valuation rules referred to in point (a), Member States shall require that the collateral physical asset is valued by an independent valuer. Moreover, they shall lay down a valuation methodology and process designed to yield values which are equal to or less than the unknown market or mortgage lending value of an asset at the moment of inclusion in the cover pool. 4. Member States shall ensure the risk mitigation referred to in paragraph 1 by imposing the following requirements: (a) all collateral for cover pool assets shall be adequately insured against the risk of loss or damage and the claim out of the insurance shall be part of the substitution assets of the cover pool; (b) physical assets referred to in paragraph 3 (a) serve as collateral for cover pool claims with at most 60% of their value determined according to the applicable rules referred to in paragraph 3; (c) assets in the form of exposures to a counterparty referred to in paragraph 3 (b) shall be cover pool eligible at a discount rate applicable to their nominal amount and not exceeding - 90% of the exposure in case the counterparty has tax raising powers, - 80% of the exposure in case the counterparty is under public supervision, - 60% of the exposure in case the counterparty is subject to an ongoing credit assessment by an independent professional third party. Member States shall ensure that credit assessments of independent professional third parties clearly identify a threshold for credit qualities which the professional third party considers to be of investment grade. Exposures to counterparties shall not be eligible as cover pool assets if a credit assessment of an independent professional third party falls below its own threshold for investment grade quality. (d) The cover pool assets shall be sufficiently granular to enable risk diversification. For the purposes of this point, sufficient granularity shall mean that the cover pool contains at least 500 exposures, loans or other types of claims all of which shall have some degree of idiosyncratic risk. (e) The cover pool shall be free of material concentration. For the purposes of this point, material concentration shall mean that aggregate exposure to a single obligor exceeds 2% of the nominal cover pool value.
Amendment 244 #
Proposal for a directive
Article 16 – paragraph 2
Article 16 – paragraph 2
2. The cover pool liquidity buffer shall cover the net liquidity outflow for 180 calendar days except in those periods of stress in which the liquidity buffer must be used to cover the net liquidity outflow of the covered bond programme.
Amendment 246 #
Proposal for a directive
Article 16 – paragraph 2 a (new)
Article 16 – paragraph 2 a (new)
2 a. Member States shall ensure that credit institutions may monetise their liquid assets to cover their net liquidity outflows during stress periods, even if such a use of liquid assets may result in their liquidity coverage ratio falling below requirements in paragraph 2 during such periods.
Amendment 250 #
Proposal for a directive
Article 16 – paragraph 3 – subparagraph 1 – point a
Article 16 – paragraph 3 – subparagraph 1 – point a
(a) assets qualifying as level 1, level 2A and level 2B assets pursuant to Articles 10, 11 and 12 of Delegated Regulation (EU) 2015/61, valuated in accordance with Article 9 of that Delegated Regulation and segregated in accordance with Article 13 of this Directive;
Amendment 267 #
Proposal for a directive
Article 16 – paragraph 4
Article 16 – paragraph 4
4. Where the credit institution issuing covered bonds is subject to liquidity requirements set out in other acts of Union or national law, Member States may decide that the national rules transposing paragraphs 1, 2 and 3 do not apply throughout the period foreseen in those acts of Union or national law.