[ParlTrack]

Proposal for a regulation
Recital 11

(11) Most EU corporates, however, do not seek external credit ratings, in particular due to cost considerations. To avoid disruptive impacts on bank lending to unrated corporates and to provide enough time to establish public or private initiatives aimed at increasing the coverage of external credit ratings, it is necessary to provide for a transitional period for such increase in the coverage. During that transitional period, institutions using IRB approaches should be able to apply a favourable treatment when calculating their output floor for investment grade exposures to unrated corporates, whilst initiatives to foster widespread use of credit ratings should be established. That transitional arrangement should be coupled with a report prepared by the European Banking Authority (‘EBA’). After the transition period, institutions should be able to refer to credit assessments by ECAIs to calculate the capital requirements for most of their corporate exposures. To inform any future initiative on the set-up of public or private rating schemes, the European Supervisory Authorities (ESAs) should be requested to prepare a report on the impediments to the availability of external credit ratings by ECAIs, in particular for corporates, and on possible measures to address those impediments. Member States, in close cooperation with their central bank, should assess whether a request for the recognition of their central bank as ECAI in accordance with Article 2 of Regulation (EC) 1060/2009 and the provision of corporate ratings by the central bank for the purposes of this Regulation may be desirable in order to increase the coverage of external ratings. In the meanwhile, the European Commission stands ready to provide technical support to Member States via its Technical Support Instrument in this area, e.g. to formulate strategies on increasing the rating- penetration of their unlisted corporates or to explore best practices on setting up entities capable of providing ratings or providing related guidance to corporates.

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 38

(38) It is necessary to reduce the compliance burden for disclosure purposes and to enhance the comparability of disclosures. EBA should therefore establish a centralised web-based platform that enables the disclosure of information and data submitted by institutions. That centralised web-platform should serve as a single access point on institutions’ disclosures, while ownership of the information and data and the responsibility for their accuracy should remain with the institutions that produce it. The centralisation of the publication of disclosed information should be fully consistent with the Capital Market Union Action Plan and represents further step towards the development of an EU-wide single access point for companies’ financial ~~and sustainable investment- related~~ information.

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 40

(40) To ensure convergence across the Union and a uniform understanding of the environmental, social and governance (ESG) factors and risks, general definitions should be laid down. The exposure to ESG risks is not necessarily proportional to an institution’s size and complexity. Level of exposures across the Union are also quite heterogeneous, with some countries showing potential mild transitional impacts and others showing potential high transitional impacts on exposures related to activities that have a significant negative impact on the environment. The transparency requirements that institutions are subject and the sustainability reporting requirements laid down in other pieces of existing legislation in the Union will provide more granular data in a few years. However, to properly assess the ESG risks that institutions may face, it is imperative that markets and supervisors obtain adequate data from all entities exposed to those risks, independently of their size. In order to ensure that competent authorities have at their disposal data that are granular, comprehensive and comparable for an effective supervision, information on exposures to ESG risks should be included in the supervisory reporting of institutions. The scope and granularity of that information should be consistent with the principle of proportionality, having regard to the size and complexity of the institutions.deleted

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 41

(41) As the transition of the Union economy towards a sustainable economic model is gaining momentum, sustainability risks become more prominent and will potentially require further consideration. It is therefore necessary to bring forward by 2 years EBA’s mandate to assess and report on whether a dedicated prudential treatment of exposures related to assets or activities substantially associated with environmental or social objectives would be justified.deleted

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 41 a (new)

(41 a) The infrastructure supporting factor has been proven successful and should thus be maintained in its current form.

2022/08/11
Committee: ECON

Markus FERBER

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

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 18 – point b

(b) operational leasing, factoring, the management of unit trusts, ~~the ownership or management of property,~~ the provision of data processing services or any other activity that is ancillary to banking;

2022/08/11
Committee: ECON

Markus FERBER

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

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 18 – point c

~~(c) any other activity considered similar by EBA to those mentioned in points (a) and (b);;~~deleted

2022/08/11
Committee: ECON

Markus FERBER

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

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52d

(52d) ‘environmental, social or governance (ESG) risk’ means the risk of losses arising from any negative financial impact on the institution stemming from the current or prospective impacts of environmental, social or governance (ESG) factors on the institution’s counterparties or invested assets;deleted

2022/08/11
Committee: ECON

Markus FERBER

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

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 145 – point b

(w a) Article 4(1), point (145), point b is amended as follows: "the total value of its assets on an individual basis or, where applicable, on a consolidated basis in accordance with this Regulation and Directive 2013/36/EU is on average equal to or less than the threshold of EUR 7,5 billion over the four-year period immediately preceding the current annual reporting period; Member States may lower that threshold"

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 13

Regulation (EU) No 575/2013
Article 49 – Paragraph 4 – subparagraph 2

The holdings in respect of which deduction is not made in accordance with paragraphs 2 or 3 shall always qualify as exposures and shall be risk weighted at 100 %.;

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 26

Directive 2013/36/EU
Article 104 – paragraph 2 – point g

(g) listed equities, unless those equities are strategic holdings with an intended holding period of six years or longer; or the equities were not listed at the time of purchase;

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 575/2013
Article 111 – Paragraph 2

(e a) 0% for items in bucket 6. (To be read in conjunction with the corresponding change in Annex I.)

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 575/2013
Article 111 – paragraph 4

4. For contractual arrangements offered by an institution, but not yet accepted by the client, that would become commitments if accepted by the client, and contractual arrangements that would qualify as commitments but meet the conditions for not being treated as commitments, the percentage applicable to that type of contractual arrangement shall be that provided for in accordance with paragraph 2.deleted

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 39

Regulation (EU) No 575/2013
Article 121 – paragraph 1 – point a – point ii

(ii) the institution meets or exceeds the requirement laid down in Article 92(1), the requirements referred to in Articles 458(2)(d)(i), 458(2)(d)(vi) and 459(a), the specific own funds requirements referred to in Article 104a of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of Directive 2013/36/EU ~~and~~or any equivalent or additional local supervisory or regulatory requirements in third countries, insofar as those requirements are ~~published~~applicable to that institution and are to be met by Common Equity Tier 1 capital, Tier 1 capital or own funds;, as applicable, or where exposures to a financial institution shall be treated as exposures to an institution according to Article 119(5), any comparable prudential requirements.

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 39

Regulation (EU) No 575/2013
Article 121 – paragraph 1 – point b – point ii

(ii) the institution meets or exceeds the requirement laid down in Article 92(1), the requirements referred to in Articles 458(2)(d)(i), 458(2)(d)(vi) and 459(a), the specific own funds requirements referred to in Article 104a of Directive 2013/36/EU ~~and~~, the combined buffer requirement defined in Article 128, point (6), of Directive 2013/36/EU or any equivalent or additional local supervisory or regulatory requirements in third countries, insofar as those requirements are ~~published~~applicable to that institution and are to be met by Common Equity Tier 1 capital, Tier 1 capital ~~and own funds;~~ or own funds, as applicable, or where exposures to a financial institution shall be treated as exposures to an institution according to Article 119(5), any comparable prudential requirements.

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation 575/2013
Article 122a – Paragraph 3 – point a – point i – introductory part

(i) 8075 % where the exposure is deemed to be high quality when taking into account all of the following criteria:

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation 575/2013
Article 123 – paragraph 1 – subparagraph 1 – point a – point i

(i) an exposure to one or ~~more~~a group of natural persons;

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation 575/2013
Article 124 – paragraph 7 – subparagraph 4

For the purposes of the second subparagraph of this paragraph, the authority designated in accordance with paragraph 6 may increase the risk weights laid down in Article 125(1), point (a), or Article 126(1), point (a). The authority shall not increase those to more than 150 %.deleted

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation 575/2013
Article 126a – paragraph 2 – introductory part

2. ADC exposures ~~to residential property~~, however, may be risk weighted at 100 %, provided that, where applicable, the institution applies sound origination and monitoring standards which meet the requirements of Articles 74 and 79 of Directive 2013/36/EU and where at least one of the following conditions is met:

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) 575/2013
Article 126a – paragraph 2 – point a

(a) legally binding pre-sale or pre-lease contracts, for which the purchaser or tenant has made a substantial cash deposit which is subject to forfeiture if the contract is terminated, or a comparable financing arrangement amount to a significant portion of total contracts;

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) 575/2013
Article 126a – paragraph 2 – point b

(b) the obligor has substantial equity at risk, which is represented as an appropriate amount of obligor-contributed equity to the ~~residential~~ property's appraised value upon completion.

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) 575/2013
Article 133 – paragraph 7a (new)

7 a. Long-term strategic equity exposures with an intended holding period of at least six years shall be assigned a risk weight of 100%.

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 61 – point c

Regulation 575/2013
Article 147 – paragraph 3 a

3a. Exposures to regional governments, local authorities or public sector entities shall all be assigned to the exposure class referred to in paragraph 2, point (a1)~~, irrespective of the treatment such exposures would receive under~~. By derogation from the first sentence, exposures treated according to Articles 115 orand 116 shall be assigned to the exposure class referred to in paragraph 2, point (a).;

2022/08/11
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 63 – point a

Regulation (EU) No 575/2013
Article 150 – paragraph 1 – subparagraph 3

~~An institution that is permitted to us~~Competent authorities may allow an institution to apply the Standardised Approach for the following exposures where the IRB Approach is applied for othe calculation of risk- weighted exposure amounts for only some types of exposures within an exposure class, shall apply the Standardised Approach for the remaining types of exposures within that exposure class.;r types of exposures within those exposure classes: (a) exposures to central governments and central banks of the Member States and its regional governments, local authorities, administrative bodies and public sector entities if the exposures to the central government and central bank are assigned a 0% risk weight under Article 114(2) or (4) and if there is no difference in risk between the exposures to that central government and central bank and those other exposures in the Member State; (b) exposures of an institution to a counterparty which is its parent undertaking, its subsidiary or a subsidiary of its parent undertaking provided that the counterparty is an institution or a financial holding company, mixed financial holding company, financial institution, asset management company or ancillary services undertaking subject to appropriate prudential requirements or an undertaking linked by a relationship within the meaning of Article 12(1) of Directive83/349/EEC; (c) exposures between institutions subject to Article 113(7).

2022/08/18
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 98 – point b a (new)

Regulation (EU) No 575/2013
Article 197 – paragraph 1 – points i and j

(b a) points (i) and (j) are added: (i) amounts receivable linked to a commercial transaction or transactions with an original maturity of less than or equal to one year. Eligible receivables do not include those associated with securitisations, sub-participations or credit derivatives or amounts owed by affiliated parties; (j) other physical collateral in accordance with Article199 paragraphs 6 and 8; The requirements outlined in Article 210 apply mutatis mutandis.

2022/08/18
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point a – point i

Regulation (EU) No 575/2013
Article 208 – paragraph 3 – point b – subparagraph 1 a

The value of the property shall not exceed the moving average value measured for that property or for a comparable property over the last three years in case of commercial immovable property, and over the last six years in case of residential property. Modifications made to the property that improve the energy efficiency of the building or housing unit shall be considered as unequivocally increasing its value.;

2022/08/18
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 314 – paragraph 3 a (new)

3 a. Institutions that are a member of an institutional protection scheme as defined in Article 113(7) may net the fee and commission income and expenses received from and paid to other members the same institutional protection scheme for the purposes of calculating the Services Component.

2022/08/18
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 176

Regulation (EU) No 575/2013
Article 430 – paragraph 1 – point h

~~(176) in Article 430, paragraph 1, the following point (h) is added: ‘ (h) ’~~deleted their exposures to ESG risks.;

2022/08/18
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 176 a (new)

Regulation (EU) 575/2013
Article 430 – paragraph 1 – subparagraph 2 a (new)

(176 a) in Article 430(1), the following subparagraph is added : Institutions which meet the definition of small and non-complex institutions shall be exempted from reporting points (e) to (g).

2022/08/18
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 176 b (new)

Regulation (EU) No 575/2013
Article 430 – paragraph 8 a (new)

(176 b) in Article 430, the following paragraph is inserted: 'By 1 January 2024 and every year thereafter, the EBA shall publish a progress report on the implementation of the mandate given in paragraph 8 of this Article. EBA shall specifically detail the progress made in relation to the objective specified in point (e) of paragraph 8.'

2022/08/18
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 180

Regulation (EU) No 575/2013
Article 433b

(180) in Article 433b(1), point (a) is amended as follows: (a) point (ii) is replaced by the following: ‘(ii) points (c), (d) and (da) of Article 438;’; (b) the following point (iv) is added: ‘(iv) points (c) and (d) of Article 442;’; is replaced by the following: Article 433b Disclosures by small and non-complex institutions “Small and non-complex institutions are exempted from disclosure requirements.”

2022/08/18
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 189

Regulation (EU) No 575/2013
Article 449a

(189) Article 449a is replaced by the following: ‘ Article 449a Disclosure of environmental, social and governance risks (ESG risks) Institutions shall disclose information on ESG risks, including physical risks and transition risks. The information referred to in the first paragraph shall be disclosed on an annual basis by small and non-complex institutions and on a semi-annual basis by other institutions. EBA shall develop draft implementing technical standards specifying uniform disclosure formats for ESG risks, as laid down in Article 434a, ensuring that they are consistent with and uphold the principle of proportionality.’ For small and non-complex institutions, the formats shall not require disclosure of information beyond the information required to be reported to competent authorities in accordance with Article 430(1), point (h).; ’deleted

2022/08/18
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 193

Regulation (EU) No 575/2013
Article 461a – introductory part

‘The Commission shall monitor the implementation of the international standards on own funds requirements for market risk in third countries. Where significant differences between the Union implementation and third countries’ implementation of those international standards are observed, including as regards the impact of the rules in terms of own funds requirements and as regards their entry into application, the Commission shall be empowered to ~~adopt a delegated act in acc~~postpone by two years the date from which institutions shall apply the own funds requirements for market risk set out in Part Three, Title IV, ord an~~ce with Article 462 to amend this Regulation by:~~y of the approaches to calculate the own funds requirements for market risk referred to in Article 325(1). The Commission shall, where appropriate, submit to European Parliament and to the Council a legislative proposal by 31 December 2026 to amend the framework for own funds requirements for market risk in light of significant differences.’

2022/08/18
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 193

Regulation (EU) No 575/2013
Article 461a – point a

(a) applying, where necessary to deliver a level playing field, a multiplier equal to or greater than 0 and lower than 1 to the institutions’ own funds requirements for market risk, calculated for specific risk classes and specific risk factors using one of the approaches referred to indeleted Articles 325c to 325ay, specifying Articles 325(1), and laid out in: (i) the alternative standardised approach; (ii) the alternative internal model approach; (iii) simplified standardised approach, to offset those observed differences between the third countries rules and Union law;az to 325bp, specifying Articles 326 to 361, specifying the

2022/08/18
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 193

Regulation (EU) No 575/2013
Article 461a – paragraph 1 – point b

(b) postponing by two years the date from which institutions shall apply the own funds requirements for market risk set out in Part Three, Title IV, or any of the approaches to calculate the own funds requirements for market risk referred to in Article 325(1).;deleted

2022/08/18
Committee: ECON

Markus FERBER