Activities of Bernd LUCKE related to 2018/0060(COD)
Plenary speeches (1)
Minimum loss coverage for non-performing exposures (debate) DE
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on amending Regulation (EU) No 575/2013 as regards minimum loss coverage for non-performing exposures PDF (671 KB) DOC (70 KB)
Amendments (9)
Amendment 65 #
Proposal for a regulation
Recital 2
Recital 2
(2) An integrated financial system will enhance the resilience of the European Monetary Union to adverse shocks by facilitating private cross-border risk- sharing, while at the same time reducing the needcall for public risk-sharing. In order to achieve these objectives, the Union should complete the Banking Union and further develop a Capital Markets Union. Addressing high stocks of NPEs and their possible future accumulation is essential to completing the Banking Union as it is essential for ensuring competition in the banking sector, preserving financial stability and encouraging lending so as to create jobs and growth within the Union.
Amendment 67 #
Proposal for a regulation
Recital 3
Recital 3
(3) In July 2017 the Council in its 'Action Plan to Tackle Non-Performing Loans in Europe' called upon the Member States and various institutions to take appropriate measures to further address the high number of NPEs in the Union. The Action Plan sets out a comprehensive approach that focuses on a mix of complementary policy actions in four areas: (i) bank supervision and regulation; (ii) reform of restructuring, insolvency and debt recovery frameworks; (iii) developing secondary markets for distressed assets; (iv) fostering restructuring of the banking system. Actions in these areas are to be taken at national level and at Union level, where appropriate. The Commission announced a similar intention in its 'Communication on completing the Banking Union' of 11 October 201716 , which called for a comprehensive package on tackling NPLs within the Union. _________________ 16 COM(2017) 592 final, 11.10.2017.
Amendment 74 #
Proposal for a regulation
Recital 5
Recital 5
(5) The prudential backstop should not prevent competent authorities from exercising their supervisory powers in accordance with Directive 2013/36/EU. Where competent authorities ascertain on a case-by-case basis that, despite the application of the prudential backstop for NPEs established in this Regulation, the NPEs of a specific institution are not sufficiently covered, they may make use of the supervisory powers envisaged in Directive 2013/36/EU, including the power referred to in Article 104(1)(d) of that Directive. It is consequently possible for the competent authorities to go, on a case- by-case basis, beyond the requirements under this Regulation for the purpose of ensuring sufficient coverage for NPEs.
Amendment 91 #
Proposal for a regulation
Recital 8
Recital 8
(8) Secured NPEs are generally entail less riskxpected to result in less of a loss than unsecured NPEs, as the credit protection securing the loan gives the institution a specific claim on an asset or against a third party in addition to the institution's general claim against the defaulted borrower. In the case of an unsecured loan, only the general claim against the defaulted borrower would be available. Given the higher riskloss expected ofn unsecured loans, a stricter calendar should be applied. An exposure which is only partly covered by collateral should be considered as secured for the covered part, and as unsecured for the part which is not covered by collateral.
Amendment 151 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 6 a (new)
Article 47a – paragraph 6 a (new)
6 a. An exposure shall cease to be classified as non-performing if it is part of a portfolio of performing or non- performing exposures which satisfies all of the following conditions: (a) The portfolio has been purchased by a specialised debt restructurer according to paragraph 7 a. (b) The price at which the portfolio has been purchased is clearly documented. (c) The net payments derived from the portfolio in the period prior to its purchase were no less than the price of the portfolio according to (b) multiplied by a market rate of interest (the ‘benchmark interest rate’) determined by EBA to be approximately equal to the average rate of return on portfolios of performing exposures of the same type. EBA shall develop draft regulatory technical standards to specify the benchmark interest rates for different classes of exposures.EBA shall submit those draft regulatory technical standards to the Commission by 1 January 2020. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the preceding subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 152 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 6 b (new)
Article 47a – paragraph 6 b (new)
6 b. For the purposes of Article 36(1)(m), all exposures in a portfolio purchased by a specialised debt restructurer according to paragraph 7 a shall be classified as non-performing if over more than 90 days the payments derived from the portfolio are less than the product of the benchmark interest rate and the book value of the portfolio, computed as its purchasing price according to point (b), corrected for any adjustments according to Article 47c(1) (b).
Amendment 159 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 7a (new)
Article 47a – paragraph 7a (new)
7 a. For the purpose of paragraph 6a and paragraph 6b ‘specialised debt restructurer’ means an institution (on a consolidated basis if applicable) that comply with all of the following conditions during the preceding financial year: (a) the management body of the purchasing institution has implemented a clear and effective internal decision process for the purchase of exposures from other institutions; (b) the book value of its own originated loans does not exceed 10 % of the aggregate book value of its loans (including purchased performing and non-performing exposures);
Amendment 170 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 1 – subparagraph 1 – introductory part
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 forseparately for each non- performing exposures to be deducted from Common Equity Tier 1 items by subtracting the amount determined in point (b) from the amount determined in point (a):
Amendment 179 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 1 – subparagraph 1 – point b – introductory part
Article 47c – paragraph 1 – subparagraph 1 – point b – introductory part
(b) the sum of the following items provided they relate to a specificthe same non- performing exposure: