18 Amendments of Jonás FERNÁNDEZ related to 2018/0060(COD)
Amendment 77 #
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, and in particular on the Basel Committee Guidelines on prudential treatment of problem assets, thus ensuring a level playing field between the European Union and other jurisdictions. 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.
Amendment 90 #
Proposal for a regulation
Recital 8
Recital 8
(8) Secured NPEs generally entail less risk 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. Specifically in the case where there is a recent independent valuation of the collateral, which takes into account, among other factors, its recoverability and enforceability, no additional provisions would be required. In the case of an unsecured loan, only the general claim against the defaulted borrower would be available. Given the higher risk of 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 101 #
Proposal for a regulation
Recital 10 a (new)
Recital 10 a (new)
(10 a) The backstop is a safeguard at the institution level intended to set prudential minimum provisioning requirements for non-performing exposures. As such, the prudential backstop should be applied on an aggregated level. This aggregation should not surpass the individual institution level and there should not be any netting between different institutions from the same banking group.
Amendment 127 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 2 – subparagraph 1
Article 47a – paragraph 2 – subparagraph 1
For the purposes of Article 36(1)(m), the exposure value of a debt instrument shall be its accounting value measured without taking into account any specific credit risk adjustments, additional value adjustments in accordance with Articles 34 and 105, amounts deducted in accordance with Article 36(1)(m) or other own funds reductions related to the exposure or partial write-offs made since the most recent non-performing classification of an exposure.
Amendment 130 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 2 – subparagraph 2
Article 47a – paragraph 2 – subparagraph 2
For the purposes of Article 36(1)(m), the exposure value of a loan commitment given, a financial guarantee given or other commitments given shall be its nominal value, which shall represent the institution’s maximum exposure to credit multiplied by the following percentage: (a) 100% if it is a full risk item as determined by Annex I; (b) 50% if it is a medium-risk without taking account of any funded or unfunded credit protection. In particular,em as determined by Annex I; (c) 20% if it is a medium/low risk item as determined by Annex I; (d) 0% if it is a low-risk as determined by Annex I.
Amendment 132 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 2 – subparagraph 2 – point a
Article 47a – paragraph 2 – subparagraph 2 – point a
Amendment 134 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 2 – subparagraph 2 – point b
Article 47a – paragraph 2 – subparagraph 2 – point b
Amendment 148 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 6 – point b
Article 47a – paragraph 6 – point b
(b) at least one yearthree months hasve passed since the latest between the moment where the forbearance measures have been granted and the moment where exposures have been classified as non-performing. In exceptional circumstances, and subject to prior agreement from supervisors, a shortened period may be used when a bank puts in place specific remedial measures to restructure the borrowers' business, that include direct participation in the borrower, that are immediately applicable and make the full repayment of the exposure likely;
Amendment 150 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 6 – subparagraph 2 a (new)
Article 47a – paragraph 6 – subparagraph 2 a (new)
For the purpose of points 2 and 3 of Article 47c, the age of the exposure during the one year cure period should be the age of the exposure at the moment when the forbearance measure was applied. If the exposure does not fulfil the requirements for exiting the non- performing classification, the age count will be resumed from the moment it was first classified as non-performing.
Amendment 153 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 7 – point (a)
Article 47a – paragraph 7 – point (a)
(a) at least twoone years haves passed since the date the forborne exposure was re- classified as performing;
Amendment 164 #
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. EBA shall develop draft regulatory technical standards to specify the conditions related to the application of the definition of non-performing exposure. EBA shall submit those draft regulatory technical standards to the Commission by (insert: entry into force + 6 moths). Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first sub-paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 187 #
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 – point iv a (new)
Article 47c – paragraph 1 – subparagraph 1 – point b – point iv a (new)
(iv a) specific risk adjustments shall include partial write-offs made since the most recent non-performing classification of an exposure.
Amendment 194 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 1 – subparagraph 1 a (new)
Article 47c – paragraph 1 – subparagraph 1 a (new)
Specific risk adjustments shall include partial write-offs made since the most recent non-performing classification of an exposure.
Amendment 198 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 1 – subparagraph 2
Article 47c – paragraph 1 – subparagraph 2
The secured part of a non-performing exposure is the part of such exposure which is covered by a funded credit protection or unfunded credit protection in accordance with Chapters 3 and 4 of Title IIthe provisions of Part Three of Title II or part of an exposure fully secured by mortgages.
Amendment 353 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 a (new)
Article 47c – paragraph 3 a (new)
3 a. By way of derogation from paragraph 3, the following factors shall apply to the part of the non-performing exposure guaranteed or insured by central government or a public sector entity: (a) 0 for the secured part of the non- performing exposure to be applied during the period between one year and seven years following its classification as non- performing, and (b) 1 for the secured part of the non- performing exposure to be applied as of the first day of the eighth year following its classification as non-performing.
Amendment 356 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) 575/2013
Article 47c – paragraph 3 b (new)
Article 47c – paragraph 3 b (new)
3 b. By way of derogation from paragraph 3, a factor of 0 shall apply to exposures where a debtor verifiably makes regular partial payments amounting to a significant portion of the initial contractual payments, if those payments enable the exposure to be cured.
Amendment 357 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 c (new)
Article 47c – paragraph 3 c (new)
3 c. The factors foreseen under paragraph 3 shall not apply when the collateral has been appraised within the last year by an entity independent from both the credit institution and the debtor, and that appraisal took into account the probability of recovery of the collateral.
Amendment 358 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 d (new)
Article 47c – paragraph 3 d (new)
3 d. By four years after the entry into force of this Regulation, the Commission shall review and report on the application of the statutory prudential backstop and shall submit that report to the European Parliament and the Council, together with a legislative proposal if appropriate.