BETA

53 Amendments of Ernest URTASUN related to 2023/0111(COD)

Proposal for a regulation
Recital 1 a (new)

(1a) The Single Resolution Mechanism (SRM) is, along with the Single Supervisory Mechanism (SSM) and the still missing European Deposit Insurance Scheme (EDIS) one of the pillars of the banking union. The ongoing review of the Union crisis management and deposit insurance framework is intended to pave the way towards the long-due completion of the banking union, including the establishment of a European deposit insurance scheme. A first step in that direction is the establishment of an EU credit line provided by a dedicated fund, managed by the Single Resolution Board (SRB), to depleted, or close to being depleted, national DGSs. This new fund should be financed through progressive transfer of banks’ contributions collected by participating DGSs.

2023/11/06
Committee: ECON

Proposal for a regulation
Recital 22

(22) To preserve market discipline, protect public funds and avoid distortions of competition, precautionary measures should remain the exception and only be applied to address serious disturbances in the market or to preserve financial stability and only use funds available in industry funded safety nets. Moreover, precautionary measures should not be used to address incurred or likely losses. The most reliable instrument to identify incurred or likely to be incurred losses is an asset quality review by the ECB, the European Supervisory Authority (European Banking Authority) (EBA), established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council34 or national competent authorities. The ECB and national competent authorities should use such a review to identify incurred or likely to be incurred losses if such review can be carried out within a reasonable timeframe. Where that is not possible, the ECB and national competent authorities should identify incurred or likely to be incurred losses in the most reliable way possible under the prevailing circumstances, based on on-site inspections where appropriate. __________________ 34 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12).

2023/11/06
Committee: ECON

Proposal for a regulation
Recital 23

(23) Precautionary recapitalisation is aimed at supporting viable institutions and entities identified as likely to encounter temporary difficulties in the near future and to prevent their situation from deteriorating further. To avoid that ~~public subsidie~~industry safety net funds are granted to businesses that are already unprofitable when the support is granted, precautionary measures granted in the form of acquisition of own funds instruments or other capital instruments or through impaired asset measures should not exceed the amount necessary to cover capital shortfalls as identified in the adverse scenario of a stress test or equivalent exercise. To ensure that public financing is ultimately discontinued, those precautionary measures should also be limited in time and contain a clear timeline for their termination (exit strategy). Perpetual instruments, including Common Equity Tier 1 capital, should only be used in exceptional circumstances and be subject to certain quantitative limits because by their nature they are not well suited for compliance with the condition of temporariness.

2023/11/06
Committee: ECON

Proposal for a regulation
Recital 35

(35) In order to ensure institutional continuity and the build-up of institutional expertise, the Chair, the Vice-Chair and the other full-time members of the Board should be allowed to serve for two consecutive terms in their respective positions. It should therefore be possible to renew their term of office for a five-year term, based on an evaluation by the Commission of the discharge of their duties during the first term.deleted

2023/11/06
Committee: ECON

Proposal for a regulation
Recital 41 a (new)

(41a) As deposit guarantee schemes are vested with additional tasks and responsibilities and considering that one direct implication of this review of the EU crisis management and deposit insurance framework, is to make DGS funds more available for resolution, their risks of being totally or partially depleted is increased. It is therefore now time to move toward a more Europeanised model, whereby a deposit insurance fund is established, financed by transfer from national DGS and managed by the Board in order to provide loans to depleted or almost depleted national DGS. The contributions to this fund should be computed according to a risk-based methodology. National DGS should inform early the Board if it anticipates that it will need to recourse to the EU credit line offered by the DIF.

2023/11/06
Committee: ECON

Proposal for a regulation
Recital 41 b (new)

(41b) Two years after the entry into force of this amending Regulation, the Commission should prepare a report to the European Parliament and the Council to assess whether and under which modalities the Deposit Insurance Fund shall also cover losses incurred by national DGS.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a

Regulation (EU) No 806/2014
Article 8 – paragraph 2 – subparagraph 1 a

The Board may instruct the national resolution authorities to exercise the powers referred to in Article 10(8) of Directive 2014/59/EU. The national resolution authorities shall implement the instructions of the Board in accordance with Article 29 of this Regulation.;deleted

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a a (new)

Regulation (EU) No 806/2014
Article 8 – paragraph 6 –subparagraph 3

(aa) in paragraph 6, the third subparagraph is replaced by the following: When drawing up and updating the resolution plan, the Board shall identify any material impediments to resolvability and, where ~~necessary and proportion~~appropriate, outline relevant actions for how those impediments could be addressed, in accordance with Article 10. ~~(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014R0806)~~Or. en

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a b(new)

Regulation (EU) No 806/2014
Article 8 – paragraph 7

(ab) paragraph 7 is replaced by the following: 7. The resolution plan shall include an analysis of how and when an institution may apply, in the conditions addressed by the plan, for the use of central bank facilities and shall identify those assets which would be expected to qualify as collateral while providing a prudent estimation of its average yearly value in aggregate for central bank liquidity purposes taking due account of relevant haircuts.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a c (new)

Regulation (EU) No 806/2014
Article 8 – paragraph 9

(ac) paragraph 9 is replaced by the following 9. The resolution plan for each entity shall include, quantified where appropriate and possible: (a) a summary of the key elements of the plan; (aa) where applicable, a detailed description of the reasons for determining that an institution is to be qualified as a liquidation entity; (b)a summary of the material changes to the institution that have occurred after the latest resolution information was filed; (c)a demonstration of how critical functions and core business lines could be legally and economically separated, to the extent necessary, from other functions so as to ensure continuity upon the failure of the institution; (d)an estimation of the timeframe for executing each material aspect of the plan; (e)a detailed description of the assessment of resolvability carried out in accordance with Article 10; (f)a description of any measures required pursuant to Article 10(7) to address or remove impediments to resolvability identified as a result of the assessment carried out in accordance with Article 10; (g)a description of the processes for determining the value and marketability of the critical functions, core business lines and assets of the institution; (h)a detailed description of the arrangements for ensuring that the information required pursuant to Article 11 of Directive 2014/59/EU is up to date and at the disposal of the resolution authorities at all times; (i)an explanation as to how the resolution options could be financed without the assumption of any of the following: (i) any extraordinary public financial support to the resolution entity or entities acquiring parts of its business besides the use of the ~~Fund~~financing arrangements established in accordance with Article 67 ; (ii)any central bank emergency liquidity assistance; or (iii)any central bank liquidity assistance provided under non-standard collateralisation, tenor and interest rate terms; (j) a detailed description of the different resolution strategies that could be applied according to the different possible scenarios and the applicable timescales; (k) a description of critical interdependencies; (l) a description of options for preserving access to payments and clearing services and other infrastructures and an assessment of the portability of client positions; (m) an analysis of the impact of the plan on the employees of the institution, including an assessment of any associated costs, and a description of envisaged procedures to consult staff during the resolution process, taking into account national systems for dialogue with social partners, where applicable; (n) a plan for communicating with the media and the public; (o) the ~~minimum~~ requirement ~~for own funds and eligible liabilities required pursuant to~~s referred to in Article 12f and 12g and a deadline to reach that level, ~~where applicable~~in accordance with Article 12k; (p) where ~~applicable, the minimum requirement for own funds and contractual bail-in instruments pursuant to Article 12, and a deadline to reach that level, where applicable~~the Board applies Article 12c(4), (5), or (7), a timeline for compliance by the resolution entity in accordance with Article 12k; (pa) a detailed and comprehensive list of MREL eligible instruments including whether their holders qualify as retail or professional investors pursuant to Directive 2014/65/EU; (pb) a detailed and quantified list of covered deposits, retail deposits, corporate deposits for payment and settlement purposes and other corporate deposits as defined respectively in Article 2(1) points (95), (97), (98) and (98a) of Directive 2014/59/EU ; (q)a description of essential operations and systems for maintaining the continuous functioning of the institution's operational processes; (r)where applicable, any opinion expressed by the institution in relation to the resolution plan. Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014R0806)

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point b

Regulation (EU) No 806/2014
Article 8 – paragraph 10

(b) in paragraph 10, the following subparagraph is added: The identification of the measures to be taken in respect of the subsidiaries referred to in the first subparagraph, point (b), that are not resolution entities may be subject to a simplified approach by the Board if such approach would not negatively affect the resolvability of the group, taking into account the size of the subsidiary, its risk profile, the absence of critical functions and the group resolution strategy. is replaced by the following: 10. Group resolution plans shall include a plan for the resolution of the group, headed by the Union parent undertaking established in a participating Member State, as a whole, either through resolution at the level of the Union parent undertaking or through break up and resolution of the subsidiaries. The group resolution plan shall identify measures for the resolution of: (a) the Union parent undertaking; (b)the subsidiaries that are part of the group and that are established in the Union; (c) the entities referred to in Article 2(b); and (d) subject to Article 33, the subsidiaries that are part of the group and that are established outside the Union. The group resolution plan shall also determine whether entities within a resolution group other than the resolution entity, qualify as liquidation entities. Without prejudice to other factors that may be deemed relevant by the Board, entities that provide critical functions or critical services or are material subsidiaries pursuant Article 4(1), point 135, of Regulation (EU) 575/2013 shall not qualify as liquidation entities.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point b a(new)

Regulation (EU) No 806/2014
Article 8 – paragraph 11

(ba) paragraph 11 is replaced by the following 11. The group resolution plan shall: (a)set out the resolution actions to be taken in relation to group entities, both through resolution actions in respect of the entities referred to in Article 2(b) and subsidiary institutions and through coordinated resolution actions in respect of subsidiary institutions, in the scenarios provided for in paragraph 6; (aa) where a group referred to in paragraph 1 comprises more than one resolution group, set out the resolution actions that are to be taken for the resolution entities of each resolution group and the implications of those actions on both of the following: (i)other group entities that belong to the same resolution group; (ii)other resolution groups; (ab) a detailed description of the reasons for determining that a group entity referred to in points (a) to (d) of paragraph 1 is to be qualified as a liquidation entity, (b)examine the extent to which the resolution tools and powers could be applied and exercised in a coordinated way to group entities established in the Union, including measures to facilitate the purchase by a third party of the group as a whole, or separate business lines or activities that are delivered by a number of group entities, or particular group entities, and identify any potential impediments to a coordinated resolution; (c)include a detailed description of the assessment of resolvability carried out in accordance with Article 10; (d)where a group includes entities incorporated in third countries, identify appropriate arrangements for cooperation and coordination with the relevant authorities of those third countries and the implications for resolution within the Union; (e)identify measures, including the legal and economic separation of particular functions or business lines, that are necessary to facilitate group resolution where the conditions for resolution are met; (f)identify how the group resolution actions could be financed and, where the Fund and the financing arrangements from non- participating Member States established in accordance with Article 100 of Directive 2014/59/EU would be required, set out principles for sharing responsibility for that financing between sources of funding in different participating and non- participating Member States. The plan shall not assume any of the following: (i)any extraordinary public financial support besides the use of the Fund established in accordance with Article 67 of this Regulation and the financing arrangements from non-participating Member States established in accordance with Article 100 of Directive 2014/59/EU; (ii)any central bank emergency liquidity assistance; or (iii)any central bank liquidity assistance provided under non-standard collateralisation, tenor and interest rate terms. Those principles shall be set out on the basis of equitable and balanced criteria and shall take into account in particular Article 107(5) of Directive 2014/59/EU and the impact on financial stability in all Member States concerned. The group resolution plan shall not have a disproportionate impact on any Member State. Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014R0806)

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point c

Regulation (EU) No 806/2014
Article 8 – paragraph 14

14. The Board shall ~~not adopt~~disclose on its website the resolution plans ~~for the entitite~~of institutions aund groups referred to in paragraph 1 where Article 22(5) applies or where the entity or group is being wound up in accordance with the applicable national law pursuant to Article 32b of Directive 2014/59/EU. er its remit on an annual basis. Commercially sensitive information or information that is protected by statutory confidentiality provisions, shall be redacted from such disclosures. Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014R0806)

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 5 – point - a a(new)

Regulation (EU) No 806/2014
Article 10 – paragraph 4 – subparagraph 1

(-aa) in paragraph 4, the first subparagraph is replaced by the following: "A group shall be deemed to be resolvable if it is feasible and credible for the Board either to wind up group entities under normal insolvency proceedings or to resolve them by applying resolution tools to, and exercising resolution powers with respect to, resolution entities of that group while avoiding, to the maximum extent possible, any significant adverse consequences for the financial systems of the Member States in which group entities are located or of other Member States or the Union, including broader financial instability or system wide events, with a view to ensuring the continuity of critical functions carried out by those group entities, where they can be easily separated in a timely manner, or by other means. ~~(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02014R0806-20220812)~~In order to perform the assessment under this subparagraph, the Board shall address requirements to a central body and credit institutions permanently affiliated to that central body. " Or. en

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 5 – point c

Regulation (EU) No 806/2014
Article 10 – paragraph 10

(c) paragraph 10 is ~~amended as follows: (i)in the second subparagraph, the word ‘institution’ is replaced by the words ‘entity conc~~replaced by the following: "10. The Board, after consulting the competent authorities, shall assess whether the measures refernred~~; (ii) in the third subparagraph, the word ‘institution’ is replaced by the word ‘entity’; (iii) the following subparagraph is added: ‘~~ to in paragraph 9 effectively address or remove the substantive impediments in question. If the measures proposed by the entity or parent undertaking concerned do not effectively reduce or remove the impediments to resolvability, the Board shall take a decision, after ~~having~~ consulteding the ~~ECB or the relevant national~~ competent authorityies and, where appropriate, the designated macro- prudential authority~~. That decision shall~~, indicateing that the measures proposed do not effectively reduce or remove the impediments to resolvability, and ~~shall~~ instructing the national resolution authorities to require the institution, the parent undertaking, or any subsidiary of the group concerned, to ~~implement the measures proposed.’; (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02014R0806-20220812)~~take any of the measures listed in paragraph 11. The Board shall take into account the threat to financial stability of those impediments to resolvability and the effect of the measures on the business of the institution, its stability and its ability to contribute to the economy, on the internal market for financial services and on the financial stability in other Member States and the Union as a whole. The entity concerned shall have the right to demonstrate how the measures it proposed would be able to remove the impediments to resolvability and how the alternative measures proposed by the Board are unnecessarily burdensome in removing them. " Or. en

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 6 – point a

Regulation (EU) No 806/2014
Article 10a – paragraph 1 – introductory part

1. Where an entity is in a situation where it meets the combined buffer requirement when considered in addition to each of the requirements referred to in Article 141a(1), points (a), (b) and (c), of Directive 2013/36/EU, but it fails to meet the combined buffer requirement when considered in addition to the requirements referred to in Articles 12d and 12e of this Regulation, when calculated in accordance with Article 12a(2), point (a), of this Regulation, or where an entity is in a situation where it breaches its requirements referred to in Articles 12d and 12e of this Regulation when calculated in accordance with Article 12a(2), point (b), the Board shall ~~have the power~~, in accordance with paragraphs 2 and 3 of this Article, ~~to instruct the national resolution authority to~~ prohibit an entity from distributing more than the Maximum Distributable Amount related to the minimum requirement for own funds and eligible liabilities ("‘M-MDA"’), calculated in accordance with paragraph 4 of this Article, through any of the following actions:;

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – introductory part

1. When applying Article 12d to a resolution entity whose preferred resolution strategy envisages ~~primarily th~~the exclusive use of the sale of business tool or the bridge institution tool and its exit from the market, the Board shall set the recapitalisation amount provided in Article 12d(3) in a proportionate way on the basis of the following criteria, as relevant:

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 3

3. The application of paragraph 1 shall not result in an amount that is ~~high~~lower than 90% of the amount resulting from the application of Article 12d(3).;

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 806/2014
Article 13 – paragraph 1 –point a –point ii

(ii) the ECB deems that remedial actions other than early intervention measures are insufficient to address the problems ~~due inter alia to a rapid and significant deterioration of the financial condition of the entity~~;

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 806/2014
Article 13 – paragraph 1 – point b

(b) the entity infringes or is likely to infringe in the 12 months following the assessment of the ECB the requirements laid down in Title II of Directive 2014/65/EU, in Articles 3 to 7, 14 to 17, or 24, 25 and 26 of Regulation (EU) No 600/2014~~, or in Articles 12f or 12g of this Regulation~~.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 17

Regulation (EU) No 806/2014
Article 14 – paragraph 2 – point c

(c) to protect public funds by minimising reliance on extraordinary public financial support~~, in particular when provided from the budget of a Member State~~;

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 19 – point c

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 2

When carrying out the assessment referred to in the first subparagraph, the Board, based on the information available to it at the time of that assessment, shall consider and compare all extraordinary public financial support that can reasonably be expected to be granted to the entity, both in the event of resolution and in the event of winding up in accordance with the applicable national law.;deleted

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 806/2014
Article 18a – title

Extraordinary ~~public~~ financial support

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

1. Extraordinary ~~public~~ financial support outside of resolution action may be granted to an entity as referred to in Article 2 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:

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 806/2014
Article 18a – paragraph 1 – point a

~~(a) where, to rem~~deletedy a serious disturbance in the economy of a Member State or to preserve financial stability, the extraordinary public financial support takes any of the following forms: (i) facilities provided by central banks in accordance with the central banks’ conditions; (ii) liabilities; (iii) instruments other than Common Equity Tier 1 instruments or of other capital instruments, or a use of impaired assets measures at prices, duration, and terms that do not confer an undue advantage upon the institution or entity concerned, provided that none of the circumstances referred to in Article 18(4), points (a), (b) or (c), or Article 21(1) are present at the time the public support is granted.State guarantee to back liquidity a State guarantee of newly issued an acquisition of own funds

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 806/2014
Article 18a – paragraph 1 – point d

(d) where the extraordinary public financial support 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 Directive 2014/59/EU, other than the support granted by a deposit guarantee scheme pursuant to Article 11(5) of Directive 2014/49/EU.deleted

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 806/2014
Article 18a – paragraph 2 – subparagraph 1 – introductory part

The support measures referred to in paragraph 1, point (ab), shall fulfil all of the following conditions:

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) 806/2014
Article 18a – paragraph 2 – subparagraph 1 – point d

(d) the measures are not used to offset losses that the entity has incurred or is likely to incur in the ne~~ar future~~xt 12 months.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 806/2014
Article 18a – paragraph 2 – subparagraph 4

~~The support measures referred to in paragraph 1~~Support measures may involve an acquisition of own funds instruments other than Common Equity Tier 1 instruments or of other capital instruments, or a use of impaired assets measures at prices, duration, and terms that do not confer an undue advantage upon the institution or entity concerned, provided that none of the circumstances referred to in Article 18(4), points (a)~~(iii),~~, (b) or (c), or Article 21(1) are present at the time the public support is granted. Such support shall be limited to measures that have been assessed by the ECB or the national competent authority as necessary to maintain the solvency of the entity by addressing its capital shortfall established in the adverse scenario of national, Union or SSM-wide stress tests or equivalent exercises conducted by the ECB, EBA or national authorities, where applicable, confirmed by the ECB or the relevant competent authority. Support shall not be used to address a capital shortfall established in the baseline scenario of national, Union or SSM-wide stress tests or equivalent exercises conducted by the European Central Bank, EBA or national authorities.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 806/2014
Article 18a – paragraph 2 – subparagraph 5

By way of derogation from ~~paragraph 1, point (a)(iii)~~the fourth subparagraph, acquisition of Common Equity Tier 1 instruments shall be exceptionally permitted where the nature of the shortfall identified is such that the acquisition of any other own funds instruments or other capital instruments would not make it possible for the entity concerned to address its capital shortfall established in the adverse scenario in the relevant stress test or equivalent exercise. The amount of acquired Common Equity Tier 1 instruments shall not exceed 2% of the total risk exposure amount of the institution or entity concerned calculated in accordance with Article 92(3) of Regulation (EU) No 575/2013.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 806/2014
Article 18a – paragraph 2 – subparagraph 6

In case any of the support measures ~~referred to in paragraph 1, point (a),~~ is not redeemed, repaid or otherwise terminated in accordance with the terms of the exit strategy established at the time of granting such measure, the ECB or the relevant national competent authority shall conclude that the condition laid down in Article 18(1), point (a), is met in relation to the institution or entity which has received those support measures and shall communicate that assessment to the Commission and to the Board, in accordance with Article 18(1), third subparagraph.;

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 22 – point c a (new)

Regulation (EU) No 806/2014
Article 20 – paragraph 18 a (new)

(ca) the following paragraph is added: 18a. The independent valuer shall have no duty or responsibility to shareholders or creditors of the institution under resolution and shall have no liability to such shareholders or creditors for acts and omissions when carrying out the valuation, unless the act or omission implies gross negligence or wilful misconduct in accordance with national law which directly affects rights of such shareholders or creditors.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 24 – point b

Regulation (EU) No 806/2014
Article 27 – paragraph 9 – point b

(b) all liabilities ranking lower than covered and retail deposits, and not excluded from bail-in pursuant to paragraphs 3 and 5, have been written down or converted in full.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 30 a (new)

Regulation (EU) No 806/2014
Article 45 – title and paragraph 3 a (new)

~~Accountability~~ (30a) Article 45 is amended as following: (a)the title is replaced by the following: “Transparency and accountability”; (b) the following paragraph is inserted: “3a. The Board shall publish all guidelines, general instructions, policies or guidance notes establishing resolution policies or methodologies to be applied within the Single Resolution Mechanism.” " Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014R0806)

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b

Regulation (EU) No 806/2014
Article 56 – paragraph 5 – subparagraph 1 a

A person who has served ~~two terms of office~~ as the Chair, the Vice-Chair or a member referred to in Article 43(1), point (b), shall not be eligible for appointment to any of the other two positions.;

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point c

Regulation (EU) No 806/2014
Article 56 – paragraph 6 – subparagraph 1 – sentence 1a

(c) in paragraph 6, first subparagraph, the following sentence is added: ‘ The Commission may arrange the names on the shortlist in the order reflecting the Commission’s assessment of the suitability of each candidate in light of the criteria referred to in paragraph 4 of this Article.; ’deleted

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point c a (new)

Regulation (EU) No 806/2014
Article 56 – paragraph 6

(ca) in Article 56, paragraph 6 is replaced by the following: "6. After hearing the Board, in its plenary session, the Commission shall provide to the European Parliament a gender- balanced shortlist of candidates for the positions of Chair, Vice- Chair and members referred to in Article 43(1)(b) and inform the Council of the shortlist. ~~By way of derogation from the first subparagraph, for the appointment of the first members of the Board following the entry into force of this Regulati~~The European Parliament may conduct hearings of the candidates on, th~~e Commission shall provide the shortlist of candidates without hear~~at shortlist. In accordance with the outcome ing the ~~Board.T~~European Parliament, the Commission shall submit a proposal for the appointment of the Chair, the Vice-Chair and the members referred to in Article 43(1)(b) to the European Parliament for approval. Following the approval of that proposal, the Council shall adopt an implementing decision to appoint the Chair, the Vice-Chair and the members referred to in Article 43(1)(b). The Council shall act by qualified majority. " Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014R0806)

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point d

Regulation (EU) No 806/2014
Article 56 – paragraph 6 a

6a. In the 9 months preceding the end of the first term of office of the Chair, of the Vice-Chair and of the members referred to in Article 43(1), point (b), the Commission shall evaluate the results achieved in the first term of office and shall decide whether to put forward a proposal for renewal of the term based on the results of that evaluation. The Council, acting on a proposal from the Commission, shall adopt an implementing decision to renew the term of office of the Chair, of the Vice-Chair and of the members referred to in Article 43(1), point (b). The Council shall act by qualified majority.;deleted

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point e a (new)

Regulation (EU) No 806/2014
Article 56 – paragraph 8

~~8. A Chair whose term of off~~(ea) in Article ~~has been extended shall not participate in another selection procedure for the same post at the end of the overall period.~~ 56, paragraph 8 is deleted. " " Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014R0806)

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 36

4. If, after the initial period referred to in paragraph 1, the available financial means fall below the target level specified in that paragraph, the regular contributions calculated in accordance with Article 70 shall be raised until the target level is reached. The Board may defer the collection of the regular contributions raised in accordance with Article 70 for 1 ~~or more~~ years to ensure that the amount to be collected reaches an amount that is proportionate to the costs of the collection process, provided that such deferral does not materially affect the capacity of the Board to use the Fund pursuant to Section 3. After the target level has been reached for the first time and where the available financial means have subsequently been reduced to less than two-thirds of the target level, those contributions shall be set at a level allowing for reaching the target level within 6 years.;

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 41 a (new)

Regulation (EU) No 806/2014
Chapter 2 a – title (new)

(41a) the following Chapter 2a is inserted: Chapter 2a CONSTITUTION OF THE DEPOSIT INSURANCE FUND

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 41 a (new)

Regulation (EU) No 806/2014
Section 1 – title (new)

Section 1 Establishment and use of the deposit insurance fund

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 41 a (new)

Regulation (EU) No 806/2014
Article 79 a (new)

Article 79a General Provisions 1. The Deposit Insurance Fund (DIF) is hereby established. It shall be gradually filled by transfer of contributions by credit institutions raised by participating DGSs. 2. The available financial means of the Deposit Insurance Fund shall reach an initial target level of 20% of the total minimum target levels that participating DGSs shall reach under the first subparagraph of Article 10(2) of Directive 2014/49/EU. The Board shall determine the amount of financial means that each participating DGS shall annually transfer to the DIF, in order for the fund to reach its initial target level by [entry into force of this amending Regulation + 2y], in accordance with the methodology laid down in Article 79b. 3. The Board shall use the Deposit Insurance Fund in order to provide funding to participating DGS for covering liquidity shortfalls in accordance with Article 12 of Directive 2014/49/EU. The Board may also grant access to the EU credit line to a participating DGS that, following an intervention made in accordance with Article 11 (1), (2), (3) or (5) of Directive 2014/49/EU, has disbursed over the past year an amount equal or above 75% of its target level. 4. The owner of the Deposit Insurance Fund shall be the Board. The Board's activities under this Regulation may under no circumstances engage the budgetary liability of the Member States. 5. The Fund shall not cover losses of participating DGS before the Commission has provided its report referred to in Article 94(4). Under no circumstances shall the Union budget or the national budgets be held liable for expenses or losses of the Fund.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 41 a (new)

Regulation (EU) No 806/2014
Article 79 b (new)

Article 79b Contributions to the fund 1. The amount that participating DGS shall transfer to the DIF in accordance with Article 79a shall be calculated on the basis of a risk-based methodology reflecting the risk of the institutions established in the Member State of the participating DGS relating to the Banking Union. 2. The Commission shall be empowered to adopt a delegated act in accordance with Article 93 in order to specify the risk- based method when calculating the contributions in accordance with paragraph 1 of this Article. The calculation shall be based on the amount of covered deposits and the degree of risk incurred by each credit institution relative to all credit institutions within the scope of the Board.The delegated act shall include, inter alia, a calculation formula and specific indicators. The methodology shall at least take into account the following criteria: (a) the level of loss absorbing capacity of the institution; (b) the institution’s ability to meet its short- and long-term obligations; (c) the stability and variety of the institutions sources of funding and its unencumbered highly liquid assets and the degree to which the institution’s assets are encumbered; (d) the institution’s contribution to overall systemic risks and its size, its complexity and its degree of interconnection with other institutions and the ease at which its critical functions can be segregated from other functions; (e) the quality of the institution’s assets, in particular the proportion of non- performing exposures, are defined in Article 47a of Regulation (EU) No 575/2013; (f) the institution’s business model and management, as well as the structural complexity of the group to which it belongs; (g) the institution’s level of diversification of its sovereign exposures.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 41 a (new)

Regulation (EU) No 806/2014
Section 2 – title (new)

Section 2 PROCEDURAL PROVISIONS

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 41 a (new)

Article 79c Preliminary information Where a participating DGS has been informed by the competent authority about, or has otherwise become aware of, circumstances relating to a credit institution affiliated to that participating DGS that are likely to result in a payout event or its use in resolution proceedings, it shall inform the Board about such circumstances without delay if it intends to use the EU credit line. In this case the participating DGS shall also provide the Board with an estimate of the expected liquidity shortfall or liquidity need.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 41 a (new)

Regulation (EU) No 806/2014
Article 79d (new)

Article 79d Notification 1. Where a participating DGS faces a liquidity shortfall in the conditions described in Article 12 of Directive 2014/49/EU it shall immediately notify the Board and submit all necessary information in order to allow the Board to assess whether the conditions for the provision of funding are met. 2. The participating DGS shall inform the Board in particular about: (a) the amount of covered deposits of the credit institution concerned; (b) its available financial means at the time of the use of preventive or alternative measures or payout event or use in resolution; (c) in case of a payout event, an estimate of the extraordinary contributions it can raise within three days from that event; (d) any circumstances which would prevent it from meeting its obligations under national law transposing Directive 2014/49/EU and possible remedies.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 41 a (new)

Regulation (EU) No 806/2014
Article 79e (new)

Article 79e Determination of the amount of funding 1. After receiving the notification under Article 79d, the Board shall decide within 24 hours, in its executive session, that the conditions for the use of the EU credit line have been met and shall determine the amount of funding that it will provide to the participating DGS. 2. The Board shall immediately inform the participating DGS about its decision under paragraphs 1. The participating DGS may request a review of the Board’s decision within 24 hours after it has been informed. It shall state the reasons why it considers an amendment to the Board’s decision necessary, in particular with respect to the amount of funding. The Board shall take a decision on the request within another 24 hours.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 41 i (new)

Regulation (EU) No 806/2014
Section 3 – title (new)

Section 3 Administration of the EU credit line

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 41 a (new)

Regulation (EU) No 806/2014
Article 79h (new)

Article 79h Composition of the Board in deposit insurance fund composition 1. Decisions on the use of the EU credit line shall be adopted by the Board in its deposit insurance fund composition. 2. The Board in deposit insurance fund composition shall be composed of the members referred to in Article 43 and a member appointed by each participating Member State, representing their designated authority.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 41 a (new)

Regulation (EU) No 806/2014
Article 79i (new)

Article 79i Tasks of the Board in deposit insurance fund composition 1. The Board in deposit insurance fund composition shall: a) take the decisions referred to in Articles 79a, 79b and 79e of this Regulation; b) provide an annual report to the European Parliament, the Council and the Commission on the use of the EU credit line and on the available financial means of the fund; c) prepare a report by [entry into force +18 months] on the feasibility and modalities of establishing a loss-coverage mechanism for participating DGS.

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 43 a (new)

Regulation (EU) No 806/2014
Article 93

(43a) Article 93 is replaced by the following: "Article 93 Exercise of the delegation 1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article. 2. The delegation of power referred to in Article 19(8), Article 65(5), Article 69(5), Article 71(3) , Article 75(4) and Article 7~~5(4~~9b (2) shall be conferred for an indeterminate period of time from the relevant dates referred to in Article 99. 3. The Commission shall ensure consistency between delegated acts adopted pursuant to this Regulation and delegated acts adopted pursuant to Directive 2014/59/EU. 4. The delegation of power referred to in Article 19(8), Article 65(5), Article 69(5), Article 71(3) , Article 75(4) and Article 7~~5(4~~9b (2) may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force. 5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. 6. A delegated act adopted pursuant to Article 19(8), Article 65(5), Article 69(5), Article 71(3) , Article 75(4) and Article 7~~5(4~~9b (2) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of three months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by three months at the initiative of the European Parliament or the Council. 7. The Commission shall not adopt delegated acts where the scrutiny time of the European Parliament is reduced through recess to less than five months, including any extension. " Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014R0806)

2023/11/06
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 43 b (new)

(43b) in Article 94, the following paragraph is added: 3a. By [entry into force of this amending Regulation +2 years], the Commission, after consulting the Board, shall report to the European Parliament and the Council on the functioning of the Deposit Insurance Fund established under Article 79a. The report shall at least assess: (a) whether and under which modalities the DIF could provide loss coverage to the national DGS; (b) the appropriateness of the DIF target level defined in Article 79a(2); (c) the phase-in toward a loss coverage phase. Where appropriate, the Commission shall accompany this report by a legislative proposal. " Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014R0806)

2023/11/06
Committee: ECON