9 Amendments of Matt CARTHY related to 2018/0060(COD)
Amendment 69 #
Proposal for a regulation
Recital 4
Recital 4
(4) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 201317 forms, together with Directive 2013/36/EU of the European Parliament and of the Council of 26 June 201318 , the legal framework governing the prudential rules for institutions. Regulation (EU) No 575/2013 contains, inter alia, provisions directly applicable to institutions for determining their own funds. It is therefore necessary to complement the existing prudential rules in Regulation (EU) No 575/2013 relating to own-funds with provisions requiring a deduction from own funds where NPEs are not sufficiently covered via provisions or other adjustments. This would amount to effectively creating a prudential backstop for NPEs that will apply uniformly to all Union institutions, which shall include all institutions active in the secondary market for NPEs in order to avoid creating a competitive advantage for the non-bank sector.
Amendment 70 #
Proposal for a regulation
Recital 4 a (new)
Recital 4 a (new)
(4 a) In the process of developing macro-prudential approaches to prevent the emergence of system-wide risks associated with NPEs, the European Systemic Risk Board shall develop appropriate macro-prudential standards and supervision of the other financial institutions involved in the secondary market for NPEs. These regulatory measures will ensure that such institutions are required to meet the same standards as banks, including in relation to prudential requirements, disclosure requirements and the fair treatment of borrowers. These institutions shall also be bound by all relevant national and EU consumer protection requirements that may be applicable.
Amendment 71 #
Proposal for a regulation
Recital 4 b (new)
Recital 4 b (new)
(4 b) Other financial institutions active in the secondary market shall take into account the interests of consumers and comply with all relevant national and EU consumer protection requirements, including those set out in Article 28 of Directive 2014/17/EU, in the EBA Guidelines on arrears and foreclosure and in the EBA final Guidelines on the management of non-performing and forborne exposures.
Amendment 79 #
Proposal for a regulation
Recital 6
Recital 6
(6) For the purposes of applying the backstop, it is appropriate to introduce in Regulation (EU) No 575/2013 a clear set of conditions for the classification of NPEs. As Commission Implementing Regulation (EU) No 680/2014 already lays down criteria concerning NPEs for the purposes of supervisory reporting, it is appropriate that the classification of NPEs builds on that existing framework. Commission Implementing Regulation (EU) No 680/2014 refers to defaulted exposures as defined for the purposes of calculating own funds requirements for credit risk and exposures impaired pursuant to the applicable accounting framework. As forbearance measures may influence whether an exposure is classified as non- performing, the classification criteria are complemented by clear criteria on the impact of forbearance measures. Forbearance measures may have different justifications and consequences, it is therefore appropriate to provide that a forbearance measure granted to a non- performing exposure should not discontinue the classification of that exposure as non-performing unless certain strict discontinuation criteria are fulfilled, in accordance with the EBA's final Guidelines on management of non- performing and forborne exposures.
Amendment 80 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6 a) Forbearance measures should aim to return the borrower to a sustainable performing repayment status, having regard to the fair treatment of the consumer and to all relevant national and EU consumer protection requirements that may be applicable. When deciding on which steps or forbearance measures to take, credit institutions should take into account the interests of consumers and comply with consumer protection requirements, including those set out in Article 28 of Directive 2014/17/EU, in the EBA Guidelines on arrears and foreclosure and in the EBA final Guidelines on the on management of non- performing and forborne exposures.
Amendment 92 #
Proposal for a regulation
Recital 9
Recital 9
Amendment 99 #
Proposal for a regulation
Recital 10
Recital 10
Amendment 139 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 3 – subparagraph 1 – introductory part
Article 47a – paragraph 3 – subparagraph 1 – introductory part
For the purposes of Article 36(1)(m), the following exposures shall be classified as non-performing, where this definition is compatible with national laws aimed at protecting distressed borrowers:
Amendment 166 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47b – paragraph 1 – introductory part
Article 47b – paragraph 1 – introductory part
1. For the purposes of Article 47a, 'forbearance measure' shall include a concession by an institution towards an obligor that is experiencing or is likely to experience a deterioration in its financial situation. The objective of forbearance measures should be to aim to return the borrower to a sustainable performing repayment status, having regard to the fair treatment of the borrower, and to all relevant national and EU consumer protection requirements that may be applicable. When deciding on which steps or forbearance measures to take, credit institutions should take into account the interests of consumers and comply with consumer protection requirements, including those set out in Article 28 of Directive 2014/17/EU, in the EBA Guidelines on arrears and foreclosure and in the EBA final Guidelines on the management of non-performing and forborne exposures. With regard to residential loans, only when a full exploration of forbearance measures has been carried out and no sustainable restructuring solution can be reached should the credit institution move towards resolution of the NPE. A concession may entail a loss for the lender and shall refer to either of the following actions: