BETA

14 Amendments of Hugues BAYET related to 2016/0362(COD)

Tom VANDENKENDELAERE, Sander LOONES, Hugues BAYET, Dariusz ROSATI, Lieve WIERINCK, Lívia JÁRÓKA, Danuta Maria HÜBNER

Proposal for a directive
Article 1 – paragraph 22 a (new)

Directive 2014/59/EU
Article 44 – paragraph 2 – subparagraph 1 – point g a (new)

22 a. In Article 44(2), the following point (ga) is added: “(ga) liabilities to institutions or entities referred to in point (b), (c) or (d) of Article 1(1) that are part of the same resolution group without being themselves resolution entity, regardless of their maturities except where these liabilities rank below ordinary unsecured liabilities under the relevant national law setting the hierarchy of claims applicable on the date of transposition of this Directive. Where the previous subparagraph applies, the resolution authority of the relevant subsidiary that is not a resolution entity shall assess whether the amount of instruments complying with Article 45g (3) is sufficient to support the implementation of the preferred resolution strategy.

2018/01/29
Committee: ECON

Mady DELVAUX, Hugues BAYET

Proposal for a directive
Article 1 – paragraph 22 a (new)

Directive 2014/59/EU
Article 44 – paragraph 2 – subparagraph 1 – point g a (new)

22 a. In Article 44(2), the following point (ga) is added: ‘(ga) liabilities to institutions or entities referred to in point (b), (c) or (d) of Article 1(1) that are part of the same resolution group without being themselves resolution entity, regardless of their maturity;'.

2018/01/29
Committee: ECON

Mady DELVAUX, Hugues BAYET

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45c – paragraph 1 – point e

~~(e) the extent to which the Deposit Guarantee Scheme could contribute to the financing of resolution in accordance with Article 109;~~deleted

2018/01/31
Committee: ECON

Mady DELVAUX, Hugues BAYET

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45c – paragraph 2 – subparagraph 1 – point b

(b) the resolution entity orand its subsidiaries that are institutions, but not resolution entities are recapitalised to a level necessary to enable them to continue to comply with the conditions for authorisation and to carry out the activities for which they are authorised under Directive 2013/36/EU, Directive 2014/65/EU or equivalent legislation ('recapitalisation');

2018/01/31
Committee: ECON

Mady DELVAUX, Hugues BAYET

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45c – paragraph 2 – subparagraph 2

Where the resolution plan provides that the entity shall be wound up under normal insolvency proceedings, or under other equivalent national procedures, the resolution authority shall assess whether it is justified to limit the requirement referred to in Article 45(1) for that entity, s~~hall~~o that it does not exceed an amount sufficient to absorb losses in accordance with point (a) of the first subparagraph. The assessment by the resolution authority shall, in particular, evaluate the limit referred to in the previous subparagraph as regards any possible impact on financial stability and any risk of contagion, including through reputational risk, to the financial system.

2018/01/31
Committee: ECON

Mady DELVAUX, Hugues BAYET

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45c – paragraph 7 – subparagraph 2

The resolution authority may reduce the requirement referred to in Article 45(1) to take account of the amount which a deposit guarantee scheme is expected to contribute to the financing of the preferred resolution strategy in accordance with Article 109 of Directive 2014/59/EU.deleted

2018/01/31
Committee: ECON

Mady DELVAUX, Hugues BAYET

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45c – paragraph 7 – subparagraph 3

The size of any such reduction shall be based on a credible assessment of the potential contribution from the deposit guarantee scheme, and shall at least: (a) the potential losses which the deposit guarantee scheme would have had to bear, had the institution been wound up under normal insolvency proceedings, taking into account the priority ranking of the deposit guarantee scheme pursuant to Article 108 of Directive 2014/59/EU; (b) be less than the limit on deposit guarantee scheme contributions set out in the second subparagraph of Article 109(5) of Directive 2014/59/EU; (c) take account of the overall risk of exhausting the available financial means of the deposit guarantee scheme due to contributing to multiple bank failures or resolutions; and (d) relevant provisions in national law and the duties and responsibilities of the authority responsible for the deposit guarantee scheme. (e) after consulting the authority responsible for the deposit guarantee scheme, document its approach as regards the assessment of the overall risk of exhausting the available financial means of the deposit guarantee scheme and apply reductions in accordance with subparagraph 1, provided that that risk is not excessive.deleted be less than a prudent estimate of be consistent with any other The resolution authority shall,

2018/01/31
Committee: ECON

Tom VANDENKENDELAERE, Sander LOONES, Hugues BAYET, Dariusz ROSATI, Lieve WIERINCK, Lívia JÁRÓKA, Danuta Maria HÜBNER

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45g – paragraph 2

2. The requirement referred to in Article 45(1)of entities referred to in the first paragraph shall be subject to the following conditions: (a) the consolidated requirement referred to in Article 45f; (b) applied to the resolution group's subsidiaries shall be covered by and not exceed the consolidated requirement referred to in Article 45f unless this is only due to the effects of the consolidation at the level of the resolution group in accordance with Article 45f(1). (c) the contribution of the subsidiary to the consolidated requirement referred to in Article 45f(1). (d) provided in paragraph 3.deleted the resolution entity complies with the sum of all requirements to be the requirement shall not exceed it shall fulfil the eligibility criteria

2018/01/31
Committee: ECON

Mady DELVAUX, Hugues BAYET

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45g – paragraph 2

2. The requirement referred to in Article 45(1)of entities referred to in the first paragraph shall be subject to the following conditions: (a) the consolidated requirement referred to in Article 45f; (b) applied to the resolution group's subsidiaries shall be covered by and not exceed the consolidated requirement referred to in Article 45f unless this is only due to the effects of the consolidation at the level of the resolution group in accordance with Article 45f(1). (c) the contribution of the subsidiary to the consolidated requirement referred to in Article 45f(1). (d) it shall fulfil the eligibility criteria provided in paragraph 3.deleted the resolution entity complies with the sum of all requirements to be the requirement shall not exceed

2018/01/31
Committee: ECON

Mady DELVAUX, Hugues BAYET

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45g – paragraph 3 – point a – point i

(i) are issued to and bought by the resolution entity; either directly or indirectly through other entities in the same resolution group that bought the liabilities from the entity subject to this Article or by an existing shareholder that is not part of the same resolution group as long as the exercise of the power of write down or convert in accordance with Articles 59 to 62 does not affect the control of the subsidiary by the resolution entity;

2018/01/31
Committee: ECON

Mady DELVAUX, Hugues BAYET

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45g – paragraph 3 – point b

(b) own funds instruments that) are issued to and bought by ~~other~~ entities ~~than the resolution entity when~~: (i) that are included in the same resolution group, or (ii) that are not included in the same resolution group as long as the exercise of the power of write down or conversion in accordance with Articles 59 to 62 does not affect the control of the subsidiary by the resolution entity.

2018/01/31
Committee: ECON

Mady DELVAUX, Hugues BAYET

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45g – paragraph 4

4. Subject to the agreement of the resolution authorities of the subsidiary and the resolution entity, the requirement may be met with a guarantee of the resolution entity granted to its subsidiary, which fulfils the following conditions: (a) least the equivalent amount as the amount of the requirement for which it substitutes; (b) the subsidiary is unable to pay its debts or other liabilities as they fall due or a determination has been made in accordance with Article 59(3) in respect of the subsidiary, whichever is the earliest; (c) through a financial collateral arrangement as defined in point (a) of Article 2(1) of Directive 2002/47/EC for at least 50 per cent of its amount; (d) collateral arrangement are governed by the laws of the Member State where the subsidiary is established unless specified otherwise by the resolution authority of the subsidiary; (e) guarantee fulfils the requirements of Article 197 of Regulation (EU) No 575/2013, which, following appropriately conservative haircuts, is sufficient to fully cover the amount guaranteed; (f) guarantee is unencumbered and in particular is not used asdeleted the guarantee is provided for at the guarantee is triggered when the guarantee is collateralised the guarantee and financial the collateral to back any other guarantee; (g) maturity that fulfils the same maturity condition as that for referred to in Article 72c(1) of Regulation (EU) No 575/2013 , and (h) operational barriers to the transfer of the collateral from the resolution entity toing the the collateral backing the the collateral has an effective the re~~levant subsidiary, including when resolution action is taken in respect of the resolution entity.~~ are no legal, regulatory or

2018/01/31
Committee: ECON

Tom VANDENKENDELAERE, Sander LOONES, Hugues BAYET, Dariusz ROSATI, Lieve WIERINCK, Lívia JÁRÓKA, Danuta Maria HÜBNER

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45g – paragraph 4

4. Subject to the agreement of the resolution authorities of the subsidiary and the resolution entity, the requirement may be met with a guarantee of the resolution entity granted to its subsidiary, which fulfils the following conditions: (a) least the equivalent amount as the amount of the requirement for which it substitutes; (b) the subsidiary is unable to pay its debts or other liabilities as they fall due or a determination has been made in accordance with Article 59(3) in respect of the subsidiary, whichever is the earliest; (c) through a financial collateral arrangement as defined in point (a) of Article 2(1) of Directive 2002/47/EC for at least 50 per cent of its amount; (d) collateral arrangement are governed by the laws of the Member State where the subsidiary is established unless specified otherwise by the resolution authority of the subsidiary; (e) guarantee fulfils the requirements of Article 197 of Regulation (EU) No 575/2013, which, following appropriately conservative haircuts, is sufficient to fully cover the amount guaranteed; (f) the collateral backing the guarantee is unencumbered and in particular is not used as collateral to back any other guarantee; (g) the collateral has an effective maturity that fulfils the same maturity condition as that for referred to in Article 72c(1) of Regulation (EU) No 575/2013 , and (h) operational barriers to the transfer of the collateral from the resolution entity to the relevant subsidiary, including when resolution action is taken in respect of the resolution entity.deleted the guarantee is provided for at the guarantee is triggered when the guarantee is collateralised the guarantee and financial the collateral backing the there are no legal, regulatory or

2018/01/31
Committee: ECON

Mady DELVAUX, Hugues BAYET

Proposal for a directive
Article 1 – paragraph 28

Directive 2014/59/EU
Article 59 – paragraph 1 – subparagraph 2

The power to write down or convert eligible liabilities independently of resolution action may be exercised only in relation to eligible liabilities that meet the conditions referred to in Article 45g(3)(a), except the condition related to the remaining maturity of liabilities. and, when exercised, shall comply with point (g) of Article 34(1). Where relevant capital instruments and eligible liabilities have been purchased by the resolution entity indirectly through other entities in the same resolution group, the power to write down or convert shall be exercised together with the exercise of the same power at the level of the parent undertaking of the entity concerned or subsequent parents that are not resolution entities so that the losses are effectively passed on to and the entity concerned is recapitalised by the resolution entity. The amount written down or converted at the level of an entity that is not a resolution entity shall count towards the thresholds laid down in Article 37(10) and point (a) of Article 44(5) applicable to the entity concerned. ".

2018/02/01
Committee: ECON