BETA

17 Amendments of Jonás FERNÁNDEZ related to 2021/0342(COD)

Jonás FERNÁNDEZ

Proposal for a regulation
Recital 5

(5) In order to avoid fragmentation of the internal market for banking, the approach for the output floor should be coherent with the principle of risk aggregation across different entities within the same banking group and the logic of consolidated supervision. At the same time, the output floor should add, the output floor should address risks stemming from internal models in both home and host Member States. In order to ensure that own funds are appropriately distributed and available to protect savings where needed, the output floor requirements should apply at all levels of consolidation, until strong progress is made at Union level on the implementation of a European Deposit Guarantee framework that provides sufficient levels of confidence to host Member States. The EBA shall assess by 31 December 2027 and at least every three years thereafter, the developments in the Union deposit guarantee framework and publish an opinion on the level of progress achieved. Once sufficient progress ris~~ks stemming from internal models in both home and host Member States~~ made at the Union level the Commission may adopt a legislative proposal to amend the level of application of the output floor. The output floor should the~~refore~~n be calculated at the highest level of consolidation in the Union, whereas subsidiaries located in other Member States than the EU parent should calculate, on a sub-consolidated basis, their contribution to the output floor requirement of the entire banking group. That approach ~~should~~would be coherent with the principle of risk aggregation across different entities within the same banking group and the logic of consolidated supervision while avoiding unintended impacts and ensure a fair distribution of the additional capital required by the application of the output floor between group entities in home and host Member States according to their risk profile.

2022/08/11
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 3 a (new)

Regulation (EU) No 575/2013
Article 7 – paragraph 3a (new)

(3 a) in Article 7, a new paragraph is added: “3a. By 31 December 2026, the Commission shall report to the European Parliament and the Council on the possibility of allowing for the application of paragraph 1 also to a subsidiary that is subject to authorisation and supervision by a Member State other than the Member State that authorises and supervises the institution which is the parent undertaking. The Commission shall pay particular attention to progress made on completing the banking union, and more particular to improvements made to the banking crisis management and deposit insurance framework which can address potential financial stability concerns resulting from the applying paragraph 1 on a cross-border basis. The Commission shall also consider which additional prudential safeguards and technical modifications could further address any potential financial stability concerns resulting from such application of paragraph 1. In particular, when applying paragraph 1 on a cross-border basis, requiring subsidiaries that benefit from an application of capital requirements in accordance with paragraph 1 to still hold adequate minimum levels of own funds requirements to ensure their resilience, also in distressed situations, could be considered. Competent authorities could define an adequate amount, taking into account the efficiency of group risk management and the effectiveness of the group financial support arrangement in resolution. That report shall, where appropriate, be accompanied by a legislative proposal. In the event that the Commission considers that the conditions to issue a legislative proposal are not met, the review referred to in the first paragraph shall be repeated every two years until such time as the Commission deems it appropriate to publish such a legislative proposal.

2022/08/11
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 3 b (new)

Regulation (EU) No 575/2013
Article 8 – paragraph 1 – subparagraph 2

By 1 January 2014, the Commission shall report to the European Parliament and the Council on any legal obstacles which are capable of rendering impossible the application of point (c) of the first subparagraph and is invited to make a legislative proposal, if appropriate, by 31 December 2015, on which of those obstacles should be removed. deleted Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02013R0575- 20230628&from=EN)

2022/08/11
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 3 c (new)

Regulation (EU) No 575/2013
Article 8 – paragraph 3 – introductory part

"3. Where institutions of the single liquidity sub-group are authorised in several Member States, paragraph 1 shall only be applied after following the procedure laid down in Article 21 and only to the institutions whose competent authorities agree about the ~~following elements: (https://eur-lex.europa.eu/leg~~elements set out in points (a) to (f) and that the additional- con~~tent/EN/TXT/PDF/?uri=CELEX:02013R0575-~~ditions set out in points (g) to (j) have been fulfilled: " Or. en 20230628&from=EN)

2022/08/11
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 3 d (new)

Regulation (EU) No 575/2013
Article 8 – paragraph 3 – points (g) to (j) (new)

(3 d) in Article 8(3), the following points are added: (g) all entities belonging to the single liquidity sub-group have entered into a group financial support agreement as defined in Directive 2014/59/EU, or another group financial support agreement that the competent authorities deem satisfactory, which requires the parent undertaking to provide liquidity support and does not provide for any upper limit to the level of support that can be provided and that would not be revocable at short notice. This group financial support agreement could also be used to satisfy the condition under point (c) of paragraph 1; (h) the liquidity sub-group provides an independent legal opinion to the competent authorities on the enforceability of this group financial support agreement that confirms the absence of any legal impediments to the transfer of liquidity across the entities belonging to the single liquidity sub- group; (i) the single liquidity sub-group is covered by a single group recovery plan that includes recovery plan indicators for each entity of the liquidity sub-group including the parent undertaking that are consistent with the liquidity sub-group’s internal liquidity management policy; (j) the single liquidity sub-group belongs to a banking group which is subject to a group resolution scheme in accordance with Article 92 of Directive 2014/59/EU. " Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02013R0575- 20230628&from=EN)

2022/08/11
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 3 e (new)

Regulation (EU) No 575/2013
Article 8 – paragraph 3a (new)

~~New (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02013R0575-~~(3 e) in Article 8, the following paragraph is inserted: "3a. By 31 December 2025, the Commission shall report to the European Parliament and the Council on the legal form and specific prudential treatment for group financial support agreements. The report shall be accompanied, where appropriate, by a legislative proposal. By 31 December 2026, the Commission shall review and report on the functioning of paragraph 3 of this Article and shall submit that report to the European Parliament and the Council. The Commission’s review and report shall assess, in particular, whether the elements and conditions specified in points (a) to (j) of paragraph 3 of this Article provide sufficient flexibility to competent authorities to define institution-specific requirements as necessary for waiving the application of liquidity requirements, where justified by the efficiency of group risk management and the effectiveness of the group financial support arrangement in resolution. The Commission’s review and report shall also take into account progress made towards completing the banking union, and more particularly to improvements made to the banking crisis management framework and the Union deposit guarantee framework which can further strengthen the consistency in liquidity management during going concern and crisis times. The report shall be accompanied, where appropriate, by a legislative proposal. " Or. en 20230628&from=EN)

2022/08/11
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a – introductory part

(a) ~~a stand-alone institution in the EU and,~~ for the purposes of complying with the obligations of this Regulation ~~on the basis of its consolidated s~~instituation ~~in accordance with Part One, Title II, Chapter 2, an EU parent institution, an EU parent financial holding company and an EU parent mixed financial holding company~~s shall calculate the total risk exposure amount as follows:

2022/08/11
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point b

(b) for the purposes set out in points (i) and (ii), the total risk exposure amount shall be calculated in accordance with paragraph 6: (i) institution in a Member State, for the purposes of complying with obligations of this Regulation on its individual basis; (ii) Member State, a parent financial holding company in a Member Statdeleted in case of a stand-alone subsidiary in case orf a parent ~~mixed financial holding company in a Member State, for the purposes of complying with obligations of this Regulation on the basis of its consolidated situation;~~institution in a

2022/08/11
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point c

(c) for the purposes of complying with the obligations of this Regulation on an individual basis, the total risk exposure amount of an institution which is neither a stand-alone institution in the EU nor a stand-alone subsidiary institution in a Member State shall be the un-floored total risk exposure amount calculated in accordance with paragraph 4.deleted

2022/08/11
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 23 a (new)

Regulation (EU) No 575/2013
Article 92 a (new)

(23 a) the following article is inserted: Article 92 a Level of application of the output floor 1. Institutions shall calculate the total risk weighted exposure amount referred to in Article 92(3) on an individual and on a consolidated basis in accordance with Part One, Title II of this Regulation. 2. The EBA shall assess the developments in the Union deposit guarantee framework and publish an opinion on whether the developments in such framework provides for the pooling of resources and for risk sharing at the EU level. The EBA shall publish the opinion referred to herein by 31 December 2027 and at least every three years thereafter until the EBA concludes that the Union deposit guarantee framework has reached a sufficient level of convergence for these purposes, having regard to all other relevant considerations in Union law. 3. Upon the EBA’s publishing a positive opinion as per paragraph 3, the Commission may adopt a legislative proposal to amend the level of application set out in paragraphs 1 and 2 taking into consideration the following: (a) institutions shall calculate the total risk weighted exposure amount referred to in Article 92(6) on the basis of the consolidated situation of the EU parent institution, EU parent financial holding company or the EU parent mixed financial holding company in accordance with Part One, Title II, Chapter 2 of this Regulation; (b) stand-alone institutions in the EU shall calculate the total risk weighted exposure amount referred to in Article 92(3) on an individual basis in accordance with Part One, Title II, Chapter 1of this Regulation;

2022/08/11
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 135 – point c

Regulation (EU) No 575/2013
Article 325c – paragraph 5 – introductory part

5. The review of the alternative standardised approach referred to in paragraph 4 shall cover both the activities of the business trading units and of the independent risk control unit and shall assess a~~ll of~~t least the following:

2022/08/18
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 135 – point c

Regulation (EU) No 575/2013
Article 325c – paragraph 5 – subparagraph 2

~~An institution shall conduct the review referred to in the first subparagraph at least once a year, or on a less frequent basis upon the approval of the competent authorities.;~~deleted

2022/08/18
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 135 – point c

Regulation (EU) No 575/2013
Article 325c – paragraph 5 a (new)

5 a. Competent authorities shall verify that the calculation referred to in paragraph 2, including the implementation by an institution of the requirements set out in this Chapter and in Article 325a, is performed with integrity. Competent authorities shall establish the frequency and intensity of the verification referred to in the previous subparagraph having regard to the size, systemic importance, nature, scale and complexity of the activities of the institution concerned and taking into account the principle of proportionality.

2022/08/18
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 135 – point c

Regulation (EU) No 575/2013
Article 325c – paragraph 5 b (new)

5 b. EBA shall develop draft regulatory technical standards to specify the assessment methodology under which competent authorities conduct the verification referred to in paragraph 3.

2022/08/18
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 151 – point c a (new)

Regulation (EU) No 575/2013
Article 325az – paragraph 8 – point b

"(b) the assessment methodology under which competent authorities verify an institution's compliance with the requirements set out in ~~Articles 325bh, 325bi, 325bn, 325bo and 325bp. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02013R0575-20230628)~~this Chapter. " Or. en

2022/08/18
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 199

Regulation (EU) No 575/2013
Article 495a – paragraph 1 – introductory part

1. By way of derogation from the treatment laid down in Article 133(3), equity exposures shall be assigned the higher of the risk-weight applicable at the date [one day before the date of entry into force of this amending Regulation], capped at 250%, and the following risk- weights:

2022/08/18
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 205

Regulation (EU) No 575/2013
Article 519d – paragraph 2 a (new)

In case admissible insurance contracts should be identified by EBA, with means of an ad hoc RTS (Regulatory Technical Standard), institutions can apply the following. NET BIC = BIC × (1−insurance benefit) where: insurance benefit = min (20%, ∑𝛿 i) and for each i policy 𝛿i=[(𝐻i∙𝐿i)/BIC] × 𝑓(𝐷i) * Wi • the policy limit (“L”); • the policy deductible (“D”); • an adjustment depending on the chosen deductible (“𝑓(𝐷)”),standardized wording pre-cleared by EBA by ensuring the benefit decreases as the deductible increases; • a standard haircut (“H”), to be determined by the competent Supervisor depending on the probability of each Insurer’s default or potential delay in payments; • the policy percentage coverage (“W”) related to the extent of the coverage, excluding overlapping with other policies.

2022/08/18
Committee: ECON