BETA

97 Amendments of Engin EROGLU related to 2021/0342(COD)

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL, Engin EROGLU

Proposal for a regulation
Recital 3

(3) Regulation (EU) No 575/2013 enables institutions to calculate their capital requirements either by using standardised approaches, or by using internal model approaches. Internal model approaches, approved by national competent authorities, allow institutions to estimate most or all the parameters required to calculate capital requirements on their own, whereas standardised approaches require institutions to calculate capital requirements using fixed parameters, which are based on relatively conservative assumptions and laid down in Regulation (EU) No 575/2013. The Basel Committee decided in December 2017 to introduce an aggregate output floor. That decision was based on an analysis carried out in the wake of the financial crisis of 2008-2009, which revealed that internal models tend to underestimate the risks that institutions are exposed to, especially for certain types of exposures and risks, and hence, tend to result in insufficient capital requirements. Compared to capital requirements calculated using the standardised approaches, internal models produce, on average, lower capital requirements for the same exposures.

2022/08/11
Committee: ECON

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

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

(18) ‘ancillary services undertaking’ means an undertaking that is not an SSPE or a CIU the principal activity of which, whether provided to undertakings inside the group or to clients outside the group, is ancillary to the principal activity of one or more institutions and the competent authority considers to be any of the following:

2022/08/11
Committee: ECON

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~~the principal activity of one or more institutions;

2022/08/11
Committee: ECON

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

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

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 26 – point a

(a) the undertaking is not an institution, a pure industrial holding company, an insurance holding company, an owner or manager of property, or a mixed- activity insurance holding company as defined in Article 212(1), points (f) and (g), of Directive 2009/138/EC; ;

2022/08/11
Committee: ECON

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

(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; in this context, ESG risks are drivers of the existing risk categories, such as credit risk, operational risk and market risk;

2022/08/11
Committee: ECON

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

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 79

(79) ‘ADC exposures’ or ‘land acquisition, development and construction exposures’ means exposures to corporates or special purpose entities financing any land acquisition for development and construction purposes, or financing development and construction of any residential or commercial immovable property excluding where the loan is below 80% of the property value;;

2022/08/11
Committee: ECON

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU, Niels FUGLSANG, Kira Marie PETER-HANSEN

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

Regulation (EU) No 575/2013
Article 46 – paragraph 2 a (new)

(11 a) the following paragraph is inserted: "2a. Institutions shall exclude holdings of Common Equity Tier 1 instruments in ancillary services undertakings where the following conditions apply: (a) the undertaking is owned in a partnership between other institutions or entities in the financial sector; (b) the undertaking provides and develops data services primarily to the shareholders; (c) the partnership between shareholders put together the main part of the board of directors of the undertaking with representatives from the shareholders; (d) the shareholders of the undertaking possess the equity investment with the intention of establishing a long term business relationship; (e) acquisition of equity in the undertaking must be approved by the management of the shareholder. These holdings shall be subject to a risk weight of 100 percent. For the purposes of this Article, a long- term equity investment follows the definition in Article 133(4)."

2022/08/11
Committee: ECON

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU, Niels FUGLSANG, Kira Marie PETER-HANSEN

Proposal for a regulation
Article 1 – paragraph 1 – point 12 a (new)

Regulation (EU) No 575/2013
Article 48 – paragraph 1 a (new)

(12 a) in Article 48, the following paragraph is inserted: "1a. Institutions shall exclude holdings of Common Equity Tier 1 instruments in ancillary services undertakings where the following conditions apply: (a) the undertaking is owned in a partnership between other institutions or entities in the financial sector; (b) the undertaking provides and develops data services primarily to the shareholders; (c) the partnership between shareholders put together the main part of the board of directors of the undertaking with representatives from the shareholders; (d) the shareholders of the undertaking possess the equity investment with the intention of establishing a long term business relationship; (e) acquisition of equity in the undertaking must be approved by the management of the shareholder. For the purposes of this Article, a long- term equity investment follows the definition in Article 133(4). These holdings shall be subject to a risk weight of 100 percent."

2022/08/11
Committee: ECON

Linea SØGAARD-LIDELL, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 27 – point a a (new)

Regulation (EU) No 575/2013
Article 104a – paragraph 2 – subparagraph 1 a (new)

(a a) in paragraph 2, the following subparagraph is inserted: Internal transfers of positions between a well identified central treasury management desk and market making desk shall not be considered as reclassification of position if: (a) the transfer of positions is done at arm's length; (b) the scope of the positions transferred is limited to assets eligible to liquidity buffer and financial instruments where such assets are the underlying instruments; (c) positions transferred to treasury shall not have been held by the market making desk for a duration that exceeds the usual holding period of the market making desk set in line with Article 103.

2022/08/11
Committee: ECON

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

Regulation (EU) No 575/2013
Article 111 – paragraph 2 – point ea (new)

(e a) 0% for items in bucket 6

2022/08/11
Committee: ECON

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

575/2013
Article 111 – paragraph 2a (new)

2 a. By way of derogation from paragraph 2, unconditionally cancellable commitments in accordance with Article 5, point 10, shall be assigned a credit conversion factor of 0%.

2022/08/11
Committee: ECON

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.deletion

2022/08/11
Committee: ECON

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

Regulation (EU) No 575/2013
Article 124 – paragraph 2 – point a – introductory part

(a) where the exposure is secured by a non-IPRE residential property or is secured by a IPRE residential property that meets any of the following conditions, the exposure shall not qualify as an IPRE exposure and shall be treated in accordance with Article 125(1) ~~where the exposure meets any of the following conditions:~~

2022/08/11
Committee: ECON

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

Regulation (EU) No 575/2013
Article 124 – paragraph 2 – point b

(b) where the exposure is secured by an IPRE residential property and the exposure does not meet any of the conditions laid down in point (a), points (i) to (iv), the exposure shall be treated in accordance with Article 125(2);

2022/08/11
Committee: ECON

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

Regulation (EU) No 575/2013
Article 124 – paragraph 3 – point a – point iii – introductory part

(iii) the immovable property is either residential property under construction or it is land upon which a residential property is planned to be constructed where that plan has been legally approved by all relevant authorities ~~concerned~~, as applicable, and where any of the following conditions is met:

2022/08/11
Committee: ECON

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

Regulation (EU) No 575/2013
Article 124 – paragraph 3 – point a – point iii – indent 2

— a central government, regional government or local authority or a public sector entity, exposures to which are treated in accordance with Articles 115(2) and 116(4), respectively, has the legal powers and ability to ensure that the property under construction will be finished within a reasonable time frame and is required to or has committed in a legally binding manner to do so where the construction would otherwise not be finished within a reasonable time frame; alternatively, there is an equivalent legal mechanism to ensure that the property under construction is completed within a reasonable timeframe;

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 45

Regulation (EU) No 575/2013
Article 125 – paragraph 2 a (new)

2 a. Institutions may apply the derogation referred to in the second subparagraph of paragraph 2 also in cases where competent authorities of a third country which apply supervisory and regulatory arrangements at least equivalent to those applied in the Union as decided in accordance with Article 107(4), publish corresponding loss rates for exposures secured by residential immovable property situated within the territory of their country or where a competent authority of a Member State publishes such information for a third country jurisdiction provided the availability of valid statistical data.

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 46

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

2 a. Institutions may apply the derogation referred to in the second subparagraph of paragraph 2 also in cases where competent authorities of a third country jurisdiction, which apply supervisory and regulatory arrangements at least equivalent to those applied in the Union as decided in accordance with Article 107(4), publish corresponding loss rates for exposures secured by commercial immovable property situated within the territory of their country or where a competent authority of a member state publishes such information for a third country jurisdiction provided the availability of valid statistical data.

2022/08/11
Committee: ECON

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

Regulation (EU) No 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

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

Regulation (EU) No 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

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL, Engin EROGLU

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

Regulation (EU) No 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

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

Regulation (EU) No 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 where the financing is ensured in an equivalent manner, amount to a significant portion of total contracts;

2022/08/11
Committee: ECON

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

Regulation (EU) No 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

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

Regulation (EU) No 575/2013
Article 126a – paragraph 2 –point b a (new)

(b a) the exposure-to-value does not exceed 80 %.

2022/08/11
Committee: ECON

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 50 a (new)

Regulation (EU) No 575/2013
Article 129 – paragraph 1 – point c

(50 a) in Article 129( 1), point (c) is replaced by the following: ‘(c) exposures to credit institutions that qualify for credit quality step 1 or credit quality step 2 or credit risk assessment grade A, or exposures to credit institutions that qualify for credit quality step 3 or credit risk assessment grade B where those exposures are in the form of: (i) short-term deposits with an original maturity not exceeding 100 days, where used to meet the cover pool liquidity buffer requirement of Article 16 of Directive (EU) 2019/2162; or (ii) derivative contracts that meet the requirements of Article 11(1) of that Directive, where permitted by the competent authorities;’ (iii) guarantees, where permitted by the competent authority " Or. en (https://eur-lex.europa.eu/eli/reg/2019/2160/oj)

2022/08/11
Committee: ECON

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 50 b (new)

Regulation (EU) No 575/2013
Article 129 – paragraph 1a

(50 b) Article 129(1a) is replaced by the following: " 1a. For the purposes of point (c) of the first subparagraph of paragraph 1, the following shall apply: (a) for exposures to credit institutions that qualify for credit quality step 1, the exposure shall not exceed 15 % of the nominal amount of outstanding covered bonds of the issuing credit institution; (b) for exposures to credit institutions that qualify for credit quality step 2 or credit risk assessment grade A, the exposure shall not exceed 10 % of the nominal amount of outstanding covered bonds of the issuing credit institution; (c) for exposures to credit institutions that qualify for credit quality step 3 or credit risk assessment grade B that take the form of short-term deposits, as referred to in point (c)(i) of the first subparagraph of paragraph 1 of this Article, or the form of derivative contracts, as referred to in point (c)(ii) of the first subparagraph of paragraph 1 of this Article, or the form of guarantees, as referred to in point (c)(iii) of the first subparagraph of paragraph 1 of this Article, the total exposure shall not exceed 8 % of the nominal amount of outstanding covered bonds of the issuing credit institution; the competent authorities designated pursuant to Article 18(2) of Directive (EU) 2019/2162 may, after consulting EBA, allow exposures to credit institutions that qualify for credit quality step 3 or credit risk assessment grade B in the form of derivative contracts or guarantees, provided that significant potential concentration problems in the Member States concerned due to the application of credit quality step 1 and 2 requirements or credit risk assessment grade A referred to in this paragraph can be documented; (d) the total exposure to credit institutions that qualify for credit quality step 1, 2 or 3 shor credit risk assessment grade A or B all not exceed 15 % of the nominal amount of outstanding covered bonds of the issuing credit institution and the total exposure to credit institutions that qualify for credit quality step 2 or 3 or credit risk assessment grade A and B shall not exceed 10 % of the nominal amount of outstanding covered bonds of the issuing credit institution. : " Or. en (https://eur-lex.europa.eu/legal- content/EN/TXT/HTML/?uri=CELEX:32019R2160&from=EN)

2022/08/11
Committee: ECON

Linea SØGAARD-LIDELL, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 50 c (new)

Regulation (EU) No 575/2013
Article 129 – paragraph 4 –subparagraph 1a (new)

(50 c) in Article 129(4), the following subparagraph is added Exposures in the form of derivatives for hedging purposes as referred to in Articles 11 and 4 of Directive (EU) 2019/2162 shall be assigned the same risk weight that the derivative counterparty would assign to the covered bonds. " Or. en (32013R0575)

2022/08/11
Committee: ECON

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER

Proposal for a regulation
Article 1 – point 50 a (new)

Regulation (EU) No 575/2013
Article 129 – paragraph 4 – table 6a

Table 6a Credit 1 2 3 4 5 6 quality step Risk 10% 15% 20% 50% 50% 100% weight (%)

2022/08/11
Committee: ECON

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 50 d (new)

Regulation (EU) No 575/2013
Article 129 – paragraph 5 – subparagraph 1 a (new)

(50 d) in Article 129(5) the following subparagraph is added: Exposures in the form of derivatives for hedging purposes as referred to in Articles 11 and 4 of Directive (EU) 2019/2162 shall be assigned the same risk weight that the derivative counterparty would assign to the covered bonds. " Or. en (https://eur-lex.europa.eu/eli/reg/2019/2160/oj)

2022/08/11
Committee: ECON

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

Regulation (EU) No 575/2013
Article 133 – paragraph 7a (new)

7 a. Equity exposures which represent a strategic investment for institutions shall be assigned a risk weight of 100%. Other equity investments shall be assigned the following risk weights: a) 100% for participations by collective investment undertakings in an entity established specifically to hold ownership rights in real estate property b) 150% for participations in an entity established specifically to finance or operate physical structures or facilities, systems and networks. The entity must provide or support basic public services (e.g. financing of broadband and energy networks, transport infrastructure, education, etc.) c) 160% for equity investments held in CIU, if the individual underlying is an equity investment equal to or smaller than 10% of the CIU’s NAV according to the documented intention of investment diversification d) 170% for investments with the intent to hold for a period of at least 10 years d) 200% for investments in the form of publicly quoted shares listed in appropriately diversified indices investment for institutions shall be assigned a risk weight of 100%. For the purposes of this paragraph, a strategic equity investment is an equity investment which has a long-term nature proven by a holding period of at least 6 years or documented intention of a holding intention of at least 6 years; and where there is no intention to make a short-term profit by selling the equity exposure .

2022/08/11
Committee: ECON

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

Regulation (EU) No 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 Articles 115 or 116.;~~. By derogation from the first sentence, exposures treated according to Articles 115 or 116 shall be assigned to the exposure class referred to in paragraph 2, point (a).

2022/08/11
Committee: ECON

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 regionalgovernments, local authorities, administrative bodies and public sector entities if the exposures to the central government and central bank areas signed 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 Directive 83/349/EEC; (c) exposures between institutions subject to Article 113(7).

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 63 – point a a (new)

Regulation (EU) No 575/2013
Article 150 – paragraph 1 – subparagraph 2a (new)

"In addition to the exposures referred to in the second subparagraph, an institution may, subject to the competent authority’s prior permission, apply the Standardised Approach for the following exposures where the IRB Approach is applied for other types of exposures within the respective exposure class: (a) exposures to central governments and central banks of the Member States and their regional governments, local authorities, administrative bodies and public sector entities provided that: (i) there is no difference in risk between the exposures to that central government and central bank and those other exposures because of specific public arrangements; and (ii) exposures to the central government and central bank are assigned a 0 % risk weight under Article 114(2) or (4); (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 Directive 83/349/EEC; (c) exposures between institutions which meet the requirements set out in Article 113(7). " Or. en (02013R0575)

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 74 – point a – point iii a (new)

Regulation (EU) No 575/2013
Article 161 – paragraph 1 –point d

"d) covered bonds and derivatives eligible for the treatment set out in Article 129(4) or (5) may be assigned an LGD value of 11,25%; " Or. en (32013R0575)

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 75 – point a

Regulation (EU) No 575/2013
Article 162 – paragraph 1 – subparagraph 1

1. For exposures for which an institution has not received permission of the competent authority to use own estimates of LGD, the maturity value (‘M’) shall be 2,5 years, except for exposures arising from securities financing transactions, for which M shall be 0,5 years. and except for self-liquidating short-term trade finance transactions connected to the exchange of goods or services, including corporate purchased receivables, for which M shall be effective, the effective maturity M as set out in paragraph 2, taking into account the provisions laid out in paragraph 3 of this Article.

2022/08/18
Committee: ECON

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL, Engin EROGLU, Dominique RIQUET

Proposal for a regulation
Article 1 – paragraph 1 – point 75 – point c – point ii – indent 2

Regulation (EU) No 575/2013
Article 162 – paragraph 3 – subparagraph 2 – point e

(e) issued as well as confirmed letters of credit that are short term ~~that is with a~~, namely that they have a residual maturity below 1 year, and are self- liquidating.;

2022/08/18
Committee: ECON

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 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.;deleted

2022/08/18
Committee: ECON

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

TIn the case of a revaluation beyond the value at the time the loan was granted the value of the property shall not exceed the 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 unequivocally increase its value shall lead to an upwards adjustment of the property value. Modifications made to the property that improve the energy efficiency of the building or housing unit shall in any case be considered as unequivocally increasing its value.;

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 118 – point b

Regulation (EU) No 575/2013
Article 229 – paragraph 1 – point b – point ii

(ii) the value is adjusted to take into account the potential for the current market price to be significantly above the value that would be sustainable ~~over the life of the loan~~;

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 118 – point b

Regulation (EU) No 575/2013
Article 229 – paragraph 1 – subparagraph 1 a (new)

For the purposes of point a, the value of residential real estate in well-developed and mature property markets may be assessed by means of a desktop valuation.

2022/08/18
Committee: ECON

Gilles BOYER, Stéphanie YON-COURTIN, Olivier CHASTEL, Engin EROGLU

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

Regulation (EU) No 575/2013
Article 312

The own funds requirement for operational risk shall be the product of business indicator component calculated in accordance with Article 313, and the internal loss multiplier calculated in accordance with Article 315b.

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 314 – paragraph 3 – subparagraph 6 a (new)

By way of derogation from this requirement, institutions may exclude fees collected in connection with the conclusion of a transaction giving access to contractual savings schemes leading to a mortgage loan with fixed interest rates and which fees' are passed through to the sales force as acquisition costs immediately after they have been settled when considering the services component.

2022/08/18
Committee: ECON

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 139 a (new)

Regulation (EU) No 575/2013
Article 325u – paragraph 4 – point c a (new)

(139 a)In article 325u(4), the following point is added: (ca) the instrument aims solely at hedging the market risks of the trading book that generate own funds requirement for residual risks, provided that the institution has demonstrated to the satisfaction of the competent authority that the instrument should be treated as a hedging position.

2022/08/18
Committee: ECON

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 139 b (new)

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

(139 b)in article 325u, the following paragraph is added : 5a. For the purposes of paragraph 4, point (ca), EBA shall issue guidelines in accordance with Article16 of Regulation (EU) No 1093/2010 to specify the conditions that the competent authority has to assess to determine that an instrument is a hedging position.

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 143 a (new)

Regulation (EU) No 575/2013
Article 325ae – paragraph 3 – subparagraph 1 a (new)

(143a) in Article 325ae(3), the following subparagraph is added: "The domestic currency of the institution referred to in the first subparagraph may also include currencies that the institution has acquired permission by the national competent authority to classify as a domestic currency in accordance with the provision in Article 325bd(new5a).”

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 153 a (new)

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

(153 a) in Article 325bd, the following paragraph is inserted: "5a. For the purpose of determining the most liquid currencies and domestic currencies for general interest rate broad risk subcategory in table 2, a competent authority may permit an institution to classify a currency that is not the institution’s reporting currency as a domestic currency. In doing so, the competent authority shall evaluate that the institution has: (a) a sufficiently large presence in the given domestic interest rate market; (b) access to liquidity with the local central bank. " Or. en (32019R0876)

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 159 – point a – point i

Regulation (EU) No 575/2013
Article 325bp – paragraph 5 – point a

"(a) the default probabilities shall be floored at 0,0~~3 %;~~ 1% for covered bond issuers and 0,03 % for all other issuers; exposures which would receive a 0 % risk- weight under the Standardised Approach for credit risk in accordance with Chapter 2 of Title II shall not be floored; " Or. en (32013R0575)

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 166 – point b

Regulation (EU) No 575/2013
Article 382 – paragraph 4 a

4a. By way of derogation from paragraph 4, an institution may choose to calculate an own funds requirements for CVA risk, using any of the applicable approaches referred to in Article 382a, for those transactions that are excluded in accordance with paragraph 4, where the institution uses eligible hedges determined in accordance with Article 386 to mitigate the CVA risk of those transactions. For this purpose, an institution may separate the own funds requirements for CVA risk of those transactions between variability of the counterparty credit spread and variability of the exposure component of CVA risk. Institutions shall establish policies to specify where they choose to satisfy their own funds requirements for CVA risk for such transactions.

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 169

Regulation (EU) No 575/2013
Article 383b – paragraph 8 – introductory part

8. The bucket-specific sensitivity shall be calculated in accordance with paragraphs 5, 6 and 7 for each bucket within a risk class. Once the bucket- specific sensitivity has been calculated for all buckets, weighted sensitivities to all risk factors across buckets shall be aggregated in accordance with the following formula, using the corresponding correlations for weighted sensitivities in different buckets set out in Articles 383l, 383n, 383q, 383u and 383qw, giving rise to the risk-class specific own funds requirements for delta or vega risk:

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 169

Regulation (EU) No 575/2013
Article 383d – paragraph 1

1. The foreign exchange delta risk factors to be applied by institutions to instruments in the CVA portfolio sensitive to foreign exchange spot rates shall be the spot foreign exchange rates between the currency in which an instrument is denominated and the institution's reporting currency or the institution's base currency where the institution is using a base currency in accordance with Article 325q (7). There shall be one bucket per currency pair, containing a single risk factor and a single net sensitivity.

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 169

Regulation (EU) No 575/2013
Article 383l – paragraph 3 a (new) and 3 b (new)

3a. The correlation parameter γbc = 50 % shall be used to aggregate general interest risk factors belonging to different buckets. 3b. The correlation parameter γbc = 80 % shall be used to aggregate general interest rate risk factors based on a currency as referred to in Article 325av (3) and a general interest rate risk factor based on the euro.

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER

Proposal for a regulation
Article 1 – paragraph 1 – point 169

Regulation (EU) No 575/2013
Article 383o – paragraph 1 – table 3 – row 9 a (new)

9 Other sector 5,0% 9a (new) Covered bonds issued by 1,0% credit institutions established in Member States 10 Qualified indices 1,5%

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 171 b (new)

Regulation (EU) No 575/2013
Article 415 – paragraph 3 – subparagraph 1 – point b

(171 b)Article 415(3), first subparagraph, point (b) is replaced by the following: "(b) additional liquidity monitoring metrics required, to allow competent authorities to obtain a comprehensive view of an institution's liquidity risk profile, proportionate to the nature, scale and complexity of an institution's activities Article 430 No. 6 requires the application of the reporting requirements in a “proportionate manner”. In addition, the findings of the EBA’s Cost of Compliance study reveal further possibilities to apply such proportionate measures.The revision of existing reporting requirements for SNCI at Level 2 does not lead to the expected relief. As the Commission asked for a cost reduction of ideally 20 % in Article 430 (8), the Commission should ensure simplifications of reporting directly in the level 1 text.For SNCI the reporting of ALLM does entail an administrative burden, even after the reduction of; in this context, institutions which qualify as small and non-complex institutions are to be subject to reduced reporting requirements and only report a maturity ladder; institutions which do not qualify as large institutions are to fulfil their reporting requirement~~s by EBA.The levels and information on ALLM are hence not significant for an European based analysis. (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02013R0575-~~ on a quarterly basis. " Or. enJustification 20220410&from=EN)

2022/08/18
Committee: ECON

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

Proposal for a regulation
Article 1 – paragraph 1 – point 177a (new)

Regulation (EU) No 575/2013
Article 430a – paragraph 3

(177 a) in Article 430a, paragraph 3 is replaced by the following: "3. The competent authorities shall publish annually on an aggregated basis the data specified in points (a) to (f) of paragraph 1, together with historical data, where available, for each national immovable property market for which such data has been collected. A competent authority shall, upon the request of another competent authority in a Member State or EBA provide to that competent authority or EBA more detailed information on the condition of the residential property or commercial immovable property markets in that Member State. " Or. en (02013R0575)

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 180 a (new)

Regulation (EU) No 575/2013
Article 433b – paragraph 1 – subparagraph 1a (new)

(180 a)in Article 433b(1), the following subparagraph is added: "Non-listed small and non-complex institutions shall not be required to disclose the information of paragraph 1 of this Article or any other disclosure requirements set out in this Regulation."

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 182

Regulation (EU) No 575/2013
Article 434 – paragraph 1 – subparagraph 1

1. ILarge institutions and other ~~than small and non-complex~~institutions that are listed institutions shall submit all the information required under Titles II and III in electronic format to EBA no later than the date on which institutions publish their financial statements or financial reports for the corresponding period, where applicable, or as soon as possible thereafter. EBA shall also publish the submission date of this information.

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 182

Regulation (EU) No 575/2013
Article 434 – paragraph 2

2. Large institutions and other institutions that are ~~not large institutions or small and non-complex~~listed institutions shall submit to EBA the disclosures referred to in Article 433a and Article 433c respectively, but not later than on the date of the publication of financial statements or financial reports for the corresponding period or as soon as possible thereafter. If disclosure is required to be made for a period when an institution does not prepare any financial report, the institution shall submit to EBA the information on disclosures as soon as practicable.

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 449a – paragraph 1

Institutions other than small and non- complex institutions shall disclose information on ESG risks, including physical risks and transition risks.

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 449a – paragraph 2

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~~.

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 449a – paragraph 3

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).;

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 1

3. By way of derogation from Article 92(5)(a), point (i), parent institutions, parent financial holding companies or parent mixed financial holding companies, stand-alone institutions in the EU or stand- alone subsidiary institutions in Member States may, until 31 December 203240, assign a risk weight of 65 % to exposures to corporates for which no credit assessment by a nominated ECAI is available provided that that entity estimates the PD of those exposures, calculated in accordance with Part Three, Title II, Chapter 3, is no higher than 0,5 %.

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU, Niels FUGLSANG

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 1

3. By way of derogation from Article 92(5)(a), point (i), parent institutions, parent financial holding companies or parent mixed financial holding companies, stand-alone institutions in the EU or stand- alone subsidiary institutions in Member States may~~, until 31 December2032,~~ assign a risk weight of 65 % to exposures to corporates for which no credit assessment by a nominated ECAI is available provided that that entity estimates the PD of those exposures, calculated in accordance with Part Three, Title II, Chapter 3, is no higher than 0,5 %.

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 2

EBA shall monitor the use of the transitional treatment laid down in the first subparagraph and the availability of credit assessments by nominated ECAIs for exposures to corporates. EBA shall report its findings to the Commission by 31 December 2028.deleted

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 2

EBA shall monitor the use of the transitional treatment laid down in the first subparagraph and the availability of credit assessments by nominated ECAIs for exposures to corporates. EBA shall report its findings to the Commission by 31 December 20328.

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU, Niels FUGLSANG

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 2

EBA shall monitor the use of the ~~transitional~~ treatment laid down in the first subparagraph and the availability of credit assessments by nominated ECAIs for exposures to corporates. EBA shall report its findings to the Commission by 31 December 2028.

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 3

On the basis of that report and taking due account of the related internationally agreed standards developed by the BCBS, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal by 31 December 2031.deleted

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU, Niels FUGLSANG

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 3

On the basis of that report and taking due account of the related internationally agreed standards developed by the BCBS, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal ~~by 31 December 2031~~, to terminate this derogation, on the basis of finding that external ratings provide sufficient coverage for corporates.

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 3

On the basis of that report ~~and taking due account of the related internationally agreed standards developed by the BCBS, the Commission shall, where appropriate, submit to the European Parliament an~~the Commission may adopt a delegated act in accordance with Article 462 to extend the transitional treatment referred to in the ~~Council a legislative proposal by 31 December 2031~~first sub- paragraph by up to ten years.

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 1 – introductory part

5. By way of derogation from Article 92(5)(a), point (i), ~~Member States may, allow parent~~ institutions, parent financial holding companies or parent mixed financial holding companies, stand- alone institutions in the EU or stand-alone subsidiary institutions in Member States to assign the following risk weights provided that all the conditions in the second subparagraph are met.

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU, Niels FUGLSANG

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 1 – point a

(a) ~~until 31 December 2032, a~~A risk weight of 10 % to the part of the exposures secured by mortgages on residential property up to 55 % of the property value remaining after any senior or pari passu ranking liens not held by the institution have been deducted,

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 1 – point a

(a) ~~until 31 December 2032,~~ a risk weight of 10 % to the part of the exposures secured by mortgages on residential property up to 55 % of the property value remaining after any senior or pari passu ranking liens not held by the institution have been deducted,

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU, Niels FUGLSANG

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 1 – point b

(b) ~~until 31 December 2029, a~~A risk weight of 45% to any remaining part of the exposures secured by mortgages on residential property up to 80 % of the property value remaining after any senior or pari passu ranking liens not held by the institution have been deducted, provided that the adjustment to own funds requirements for credit risk referred to in Article 501 is not applied.

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU, Niels FUGLSANG

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 1 – point b a (new)

(b a) A risk weight of 30 % to the part of the exposures secured by mortgages on commercial property up to 55 % of the property value remaining after any senior or pari passu ranking liens not held by the institution have been deducted,

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 2 – point c – introductory part

(c) for the qualifying exposures the institution ~~has both the following claims~~ in the event of the default or non-payment of the obligor:

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 2 – point c – point i

(i) ~~a claim on~~ the residential immovable property securing the exposure;

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 2 – point c – point ii

(ii) ~~a claim on~~ the other assets and income of the obligor;

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 2 – point d

~~(d) the competent authority has verified that the conditions in points (a), (b) and (c) are met.~~deleted

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU, Niels FUGLSANG

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraphs 3 to 6

Where the discretion referred to in the first subparagraph has been exercised and all the associated conditions in the second subparagraph are met, institutions may assign the following risk weights to the remaining part of the exposures referred to in the second subparagraph, point (b), until 31 December 2032: (a) 52,5 % during the period from 1 January 2030 to 31 December 2030; (b) January 2031 to 31 December 2031; (c) January 2032 to 31 December 2032. When Member States exercise that discretion, they shall notify EBA and substantiate their decision. Competent authorities shall notify the details of all the verifications referred to in the first subparagraph, point (c), to EBA. EBA shall monitor the use of the transitional treatment in the first subparagraph and report to the Commission by 31 December 2028 on the appropriateness of the associated risk weights. On the basis of that report and taking due account of the related internationally agreed standards developed by the BCBS, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal by 31 December 2031.;deleted 60 % during the period from 1 67,5 % during the period from 1

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 3 – introductory part

Where the discretion referred to in the first subparagraph has been exercised and all the associated conditions in the second subparagraph are met, institutions may assign the following risk weights to the remaining part of the exposures referred to in the second subparagraph, point (b), until 31 December 2032:deleted

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 3 – point a

~~(a) 52,5 % during the period from 1 January 2030 to 31 December 2030;~~deleted

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 3 – point b

~~(b) 60 % during the period from 1 January 2031 to 31 December 2031;~~deleted

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 3 – point c

~~(c) 67,5 % during the period from 1 January 2032 to 31 December 2032.~~deleted

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 5

~~EBA shall monitor the use of the transitional treatment in the first subparagraph and report to the Commission by 31 December 2028 on the appropriateness of the associated risk weights.~~deleted

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 6

On the basis of that report and taking due account of the related internationally agreed standards developed by the BCBS, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal by 31 December 2031.;deleted

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 495a – paragraph 3

3. By way of derogation from Article 133, institutions may continue to assign the same risk weight that was applicable as of [OP please insert the date = one day before the date of entry into force of this amending Regulation] to equity exposures to entities of which they have been a shareholder at [adoption date] for six consecutive years and over which they - or together with the network the institutions belong to - exercise significant influence in the meaning of Directive 2013/34/EU, or the accounting standards to which an institution is subject under Regulation (EC) No 1606/2002, or a similar relationship between any natural or legal person or network of institutions and an undertaking.

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU, Niels FUGLSANG, Kira Marie PETER-HANSEN

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

Regulation (EU) No 575/2013
Article 495a – paragraph 3 a (new)

3 a. By way of derogation from Article 133, institutions may continue to assign the same risk weight that was applicable as of [OP please insert the date = one day before the date of entry into force of this amending Regulation] to equity exposures to entities of which they have been a shareholder at [adoption date] for six consecutive years and meet the following conditions: - The entity is owned in a partnership between other institutions or entities in the financial sector - The entity is a credit institution or a financial institution -The shareholders buy or convey services or products produced by the entity - The partnership between shareholders put together the main part of the board of directors of the entity with rep- resentatives from the shareholders - The shareholders of the entity possess the equity investment with the intention om establishing a long term business relationship - Acquisition of equity in the entity must be approved by the management of the shareholder institutions or entities in the financial sector. For the purposes of this Article, a long term equity investment follows the definition in article 133(4).

2022/08/18
Committee: ECON

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

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

1. By way of derogation from Article 230, the applicable value of Hc corresponding to ‘other physical collateral’ for the exposures referred to in Article 199(7) where the ~~property~~asset leased corresponds to the ‘other physical collateral’ type of funded credit protection, shall be the value of Hc for ‘other physical collateral’ provided for in Article 230(2), Table 1, multiplied by the following factors:

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 495c – paragraph 2 – subparagraph 1

2. EBA shall prepare a report on the appropriate calibrations of risk parameters associated with movable leasing exposures ~~under the IRB Approach, and~~for different asset categories under the IRB, in particular on the LGDs and Hc provided for in Article 230. The report shall also propose risk weights calibrations for leasing under the Standardised Approach (SA) that more adequately reflect its risk profile. EBA shall in particular include in its report data on average numbers of defaults and realised losses observed in the Union for exposures associated with different types of leased ~~propertie~~assets and different types of institutions practicing leasing activities.

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 199 a (new)

Regulation (EU) No 575/2013
Article 495da (new)

Article 495da By way of derogation from Article 122 (2), institutions may assign a risk weight of 65% to exposures to corporates for which no credit assessment by a nominated ECAI is available provided that the PD of those exposures is not higher than 0.4%. When estimating the respective PD, the following conditions shall be met and be subject to supervisory review: a) the requirements in Article 178 concerning the definition of default, b) the qualitative requirements laid down in Part III, Title II, Chapter III, Section 6 with regard to the rating process.

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 199 a (new)

Regulation (EU) No 575/2013
Article 495db (new)

Article 495db By way of derogation from Article 125 (1), point (a), institutions may assign a risk weight of 10% to the part of the exposures secured by mortgages on residential property up to 55% of the property value. For the purposes of assigning the risk weights in accordance with the first subparagraph, all of the following conditions shall be met: (a) over the last six years the institution’s losses on the part of such exposures up to 55 % of the property value do not exceed on average 0,25 % of the total amount, across all such exposures, of credit obligations outstanding in a given year; (b) for the qualifying exposures the institution can take the following recourse action in the event of the default or non- payment of the obligor: (i) a recourse to the residential immovable property securing the exposure; (ii) a recourse to the other assets and income of the obligor.

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 201 – point a

Regulation (EU) No 575/2013
Article 501a – paragraph 1 – point a

‘(a) the exposure is ~~assigned to~~included either in the corporate exposure class ~~referred to ei~~or in ther in ~~Article 112, point (g), or in Article 147(2), point (c)~~frastructure finance and object finance exposures class, with the exclusion of exposures in default;’

2022/08/18
Committee: ECON

Engin EROGLU, Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 205a (new)

Regulation (EU) No 575/2013
Article 519da (new)

(205a) the following article is inserted: ‘Article 519da Proportionality EBA shall assess the extent to which the requirements of this Regulation, of Directive 2013/36/EU and of the delegated acts adopted by the Commission on the basis thereof address the financial stability relevance of Less Significant Institutions (LSIs), within the meaning of Article 6(4) of Regulation (EU) No 1024/2013, and shall report its findings to the Commission by 31 December 2023. The report to be produced shall cover: (a) an assessment of the relevance of LSIs at institution level for maintaining financial stability. That assessment shall include categorisation of LSIs by regionality. In that connection, EBA shall identify at what (EU) territorial unit level (local, regional, national) default by an individual LSI would have negative consequences for the financial stability of the Member State concerned; (b) an assessment of the proportionality of the requirements for the various categories of LSIs for maintaining financial stability; (c) recommendations as to how requirements can be varied so as to reflect the differing degrees of financial stability relevance of categories of LSIs, to the extent that is necessary, without jeopardising the financial soundness of the institution concerned.’

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER

Proposal for a regulation
Annex – table –column 2 – row 8

Regulation (EU) No 575/2013
Annex 1

~~ Performance bonds, bi~~deleted warranties and standby letters of credit related to particular transactions and similar transaction- related bcon~~ds,~~tingent items;

2022/08/18
Committee: ECON

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER

Proposal for a regulation
Annex – table – column 2 - row 13 -a (new)

Regulation (EU) No 575/2013
Annex 1

 Performance bonds, bid bonds, warranties and standby letters of credit related to particular transactions and similar transaction- related contingent items;

2022/08/18
Committee: ECON

Proposal for a regulation
Annex – table – column 2 – row 15

Regulation (EU) No 575/2013
Annex I

~~Unconditionally cancellable commitments;~~ deleted "

2022/08/18
Committee: ECON