23 Amendments of Martin SCHIRDEWAN related to 2016/0361(COD)
Amendment 19 #
(7) Eligibility criteria for liabilities for the MREL should be closely aligned with those laid down in Regulation (EU) No 575/2013 for the TLAC minimum requirement, in line with the complementary adjustments and requirements introduced in this Regulation. In particular, certain debt instruments with an embedded derivative component, such as certain structured notes, should be eligible to meet the MREL to the extent that they have a fixed principal amount repayable at maturity while only an additional return is linked to a derivative and depends on the performance of a reference asset. In view of their fixed principal amount, those instruments should be highly loss- absorbing and easily bail-inable in resolution. Eligible liabilities should be clearly subordinated to other liabilities in order to avoid any "no creditor worse off" issues.
Amendment 20 #
Proposal for a regulation
Recital 8
Recital 8
(8) The scope of liabilities to meet the MREL includes, in principle, all liabilities resulting from claims arising from unsecured non-preferred creditors (non- subordinated liabilities) unless they do not meet specific eligibility criteria provided in this Regulation. To enhance the resolvability of institutions through an effective use of the bail-in tool, the Board should be able to require that the firm- specific requirement is met with subordinated liabilities, in particular when there are clear indications that bailed-in creditors are likely to bear losses in resolution that would exceed their potential losses in insolvency. The requirement to meet MREL with subordinated liabilities should be requested only for a level necessary to prevent that losses of creditors in resolution are above losses that they would otherwise incur under insolvency. Any subordination of debt instruments requested by the Board for the MREL should be without prejudice to the possibility to partly meet the TLAC minimum requirement with non- subordinated debt instruments in accordance with Regulation (EU) No 575/2013 as permitted by the TLAC standard.
Amendment 23 #
Proposal for a regulation
Recital 10
Recital 10
(10) To enhance their resolvability, the Board should be able to impose an institution-specific MREL on G-SIIs in addition to the TLAC minimum requirement provided in Regulation (EU) No 575/2013. That institution-specific MREL may only be imposed where the TLAC minimum requirement is not sufficient to absorb losses and recapitalise a G-SII under the chosen resolution strateg when deemed necessary.
Amendment 25 #
Proposal for a regulation
Recital 11
Recital 11
(11) When setting the level of MREL, the Board should consider the degree of systemic relevance of an institution and the potential adverse impact of its failure on the financial stability. The Board should take into account the need for a level playing field between G-SIIs and other comparable institutions with systemic relevance within the participating Member States. Thus MREL of institutions that are not identified as G-SIIs but the systemic relevance within participating Member States of which is comparable to the systemic relevance of G-SIIs should not diverge disproportionately from the level and composition of MREL generally set for G-SIIs. and may also exceed that level.
Amendment 26 #
Proposal for a regulation
Recital 12
Recital 12
(12) Similarly to powers conferred to competent authorities by Directive 2013/36/EU, the Board should be allowed to impose higher levels of MREL while addressing in a more flexible manner any breaches of those levels, in particular by alleviating the automatic effects of those breaches in the form of limitations to the Maximum Distributable Amounts ('MDAs'). The Board should be able to give guidance to institutions to meet additional amounts to cover losses in resolution that are above the level of the own funds requirements laid down in Regulation (EU) No 575/2013 and Directive 2013/36/EU, and/or to ensure sufficient market confidence in the institution post-resolution. To ensure consistency Directive 2013/36/EU, guidance to cover additional losses may only be given where the 'capital guidance' has been requested by the competent supervisory authorities in accordance with Directive 2013/36/EU and should not exceed the level requested in that guidance. For the recapitalisation amount, the level requested in the guidance to ensure market confidence should enable the institution to continue to meet the conditions for authorisation for an appropriate period of time including by allowing the institution to cover the costs related to the restructuring of its activities following resolution. The market confidence buffer should not exceed the combined capital buffer requirement under Directive 2013/36/EU unless a higher level is necessary to ensure that, following the event of resolution, the entity continues to meet the conditions for its authorisation for an appropriate period. Where an entity consistently fails to have additional own funds and eligible liabilities as expected under the guidance, the Board should be able to require that the amount of the MREL be increased to cover the amount of the guidance. For the purposes of considering whether there is a consistent failure, the Board should take into account the entity's reporting on the MREL as required by Directive 2014/59/EUen deemed necessary for resolution.
Amendment 28 #
Proposal for a regulation
Recital 14
Recital 14
(14) Institutions that are not resolution entities should comply with the firm- specific requirement at individual level. Loss absorption and recapitalisation needs of those institutions should be generally provided by their respective resolution entities through the acquisition by resolution entities of eligible liabilities issued by those institutions and their write- down or conversion into instruments of ownership when those institutions are no longer viable. As such, the MREL applicable to institutions that are not resolution entities should be applied together and consistently with the requirements applicable to resolution entities. That should allow the Board to resolve a resolution group without placing certain of its subsidiary entities in resolution, thus avoiding potentially disruptive effects on the market. Subject to the agreement of the Board, it should be possible to replace the issuance of eligible liabilities to resolution entities with collateralised guarantees between the resolution entity and its subsidiaries, that can be triggered when the timing conditions equivalent to those allowing the write down or conversion of eligible liabilities are met. The collateral backing the guarantee should be highly liquid and have minimal market and credit risk. The Board should also be able to fully waive the application of the MREL applicable to institutions that are not resolution entities if both the resolution entity and its subsidiaries are established in the same participating Member State.
Amendment 49 #
Proposal for a regulation
Article 1 – paragraph 5
Article 1 – paragraph 5
Regulation (EU) No 806/2014
Article 12 c – paragraph 1
Article 12 c – paragraph 1
1. Eligible liabilities shall be included in the amount of own funds and eligible liabilities of resolution entities only where they satisfy the conditions referred to in 72a(2), except for point (d) of Article 72b(2) of Regulation (EU) No 575/2013.
Amendment 51 #
Proposal for a regulation
Article 1 – paragraph 5
Article 1 – paragraph 5
Regulation (EU) No 806/2014
Article 12 c – paragraph 2
Article 12 c – paragraph 2
Amendment 54 #
Proposal for a regulation
Article 1 – paragraph 5
Article 1 – paragraph 5
Regulation (EU) No 806/2014
Article 12 c – paragraph 3 – subparagraph 1
Article 12 c – paragraph 3 – subparagraph 1
The Board, on its own initiative after consulting the national resolution authority or upon proposal by a national resolution authority, may decidshall ensure that the requirement referred to in Article 12g is met by resolution entities with instruments that meet all conditions referred to in Article 72a of Regulation (EU) No 575/2013 with a view to ensure that the resolution entity can be resolved in a manner suitable to meet the resolution objectives.
Amendment 55 #
Proposal for a regulation
Article 1 – paragraph 5
Article 1 – paragraph 5
Regulation (EU) No 806/2014
Article 12 c – paragraph 3 – subparagraph 2
Article 12 c – paragraph 3 – subparagraph 2
Amendment 72 #
Proposal for a regulation
Article 1 – paragraph 5
Article 1 – paragraph 5
Regulation (EU) No 806/2014
Article 12 d – paragraph 3 – subparagraph 1 – introductory part
Article 12 d – paragraph 3 – subparagraph 1 – introductory part
Amendment 75 #
Proposal for a regulation
Article 1 – paragraph 5
Article 1 – paragraph 5
Regulation (EU) No 806/2014
Article 12 d – paragraph 3 – subparagraph 1 – point a
Article 12 d – paragraph 3 – subparagraph 1 – point a
Amendment 80 #
Proposal for a regulation
Article 1 – paragraph 5
Article 1 – paragraph 5
Regulation (EU) No 806/2014
Article 12 d – paragraph 3 – subparagraph 1 – point b
Article 12 d – paragraph 3 – subparagraph 1 – point b
Amendment 83 #
Amendment 88 #
Proposal for a regulation
Article 1 – paragraph 5
Article 1 – paragraph 5
Regulation (EU) No 806/2014
Article 12 d – paragraph 4 – subparagraph 1
Article 12 d – paragraph 4 – subparagraph 1
Amendment 113 #
Proposal for a regulation
Article 1 – paragraph 5 Regulation (EU) No 806/2014
Article 1 – paragraph 5 Regulation (EU) No 806/2014
Amendment 116 #
Proposal for a regulation
Article 1 – paragraph 5
Article 1 – paragraph 5
Regulation (EU) No 806/2014
Article 12 f
Article 12 f
Amendment 119 #
Proposal for a regulation
Article 1 – paragraph 5
Article 1 – paragraph 5
Regulation (EU) No 806/2014
Article 12 f – paragraph 1 – subparagraph 1
Article 12 f – paragraph 1 – subparagraph 1
Amendment 123 #
Proposal for a regulation
Article 1 – paragraph 5 Regulation (EU) No 806/2014
Article 1 – paragraph 5 Regulation (EU) No 806/2014
Amendment 125 #
Proposal for a regulation
Article 1 – paragraph 5
Article 1 – paragraph 5
Regulation (EU) No 806/2014
Article 12 f – paragraph 2
Article 12 f – paragraph 2
Amendment 131 #
Proposal for a regulation
Article 1 – paragraph 5
Article 1 – paragraph 5
Regulation (EU) No 806/2014
Article 12 f – paragraph 3
Article 12 f – paragraph 3
Amendment 135 #
Proposal for a regulation
Article 1 – paragraph 5
Article 1 – paragraph 5
Regulation (EU) No 806/2014
Article 12 f – paragraph 4
Article 12 f – paragraph 4
Amendment 145 #
Proposal for a regulation
Article 1 – paragraph 5
Article 1 – paragraph 5
Regulation (EU) No 806/2014
Article 12 h – paragraph 4
Article 12 h – paragraph 4