84 Amendments of Stéphanie YON-COURTIN related to 2021/0342(COD)
Amendment 315 #
Proposal for a regulation
Recital 2
Recital 2
(2) To address those problems, provide legal certainty and signal our commitment to our international partners in the G20, it is of utmost importance to implement the outstanding elements of the Basel III reform faithfully. At the same time, the implementation should avoid a significant increase in overall capital requirements for the EU banking system on the whole and take into account specificities of the EU economy. Where possible, adjustments to the international standards should be applied on a transitional basis. The implementation should help avoid competitive disadvantages for EU institutions, in particular in the area of trading activities, where EU institutions directly compete with their international peers. Furthermore, the proposed approach should be coherent with the logic of the Banking Union and avoid further fragmentation of the Single Market for banking. Finally, it should ensure proportionality of the rules and aim at further reducing compliance costs, in particular for smaller institutions, without loosening the prudential standards.
Amendment 317 #
Proposal for a regulation
Recital 3
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.
Amendment 318 #
Proposal for a regulation
Recital 5
Recital 5
(5) In order to avoid fragmentation of the internal market for banking, the approach for the output floor should be coherent with the principle of risk aggregation across different entities within the same banking group and the logic of consolidated supervision. At the same time, the output floor should address risks stemming from internal models in both home and host Member States. The output floor should therefore be calculated at the highest level of consolidation in the Union, whereas subsidiaries located in other Member States than the EU parent should calculate, on a sub-consolidated basis, their contribution to the output floor requirement of the entire banking group. That approach should avoid unintended impacts and ensure a fair distribution of the additional capital required by the application of the output floor between group entities in home and host Member States according to their risk profileThe output floor should therefore be calculated at the highest level of consolidation in the Union.
Amendment 323 #
Proposal for a regulation
Recital 8
Recital 8
(8) For subordinated debt and equity exposures, a more granular and stringent risk weight treatment is necessary to reflect the higher loss risk of subordinated debt and equity exposures when compared to debt exposures, and to prevent regulatory arbitrage between the banking book and the trading book. Union institutions have long-standing, strategic equity investments in financial and non-financial corporates. As the standard risk weight for equity exposures increases over a 5-year transition period, existing sStrategic equity holdings in corporates and insurance undertakings under significant influence of the institution should be grandfatheredtreated under a preferential treatment to avoid disruptive effects and to preserve the role of Union institutions as long-standing, strategic equity investors. Given the prudential safeguards and supervisory oversight to foster financial integration of the financial sector, however, for equity holdings in other institutions within the same group or covered by the same institutional protection scheme, the current regime should be maintained for institutions using the standardised approach, and, as a consequence, in order to ensure a level playing field, should be adequately adapted for banks using the IRB Approach. In addition, to reinforce private and public initiatives to provide long-term equity to EU corporates, be they listed or unlisted, investments should not be considered as speculative where they are made with the firm intention of the institution’s senior management to hold it for three or more years.
Amendment 329 #
Proposal for a regulation
Recital 11
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. 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.
Amendment 339 #
Proposal for a regulation
Recital 15
Recital 15
(15) To ensure that the impacts of the output floor on low-risk residential mortgage lending by institutions using IRB approaches are spread over a sufficiently long period and thus avoid disruptions to that type of lending that could be caused by sudden increases in own funds requirements, it is necessary to provide for a specific transitional arrangement. For the duration of the arrangement, warrangement. When calculating the output floor, IRB institutions should be able to apply a lower risk weight to the part of their residential mortgage exposures that is considered secured by residential property under the revised SA-CR. To ensure that the transitional arrangement is available only to low-risk mortgage exposures, appropriate eligibility criteria, based on established concepts used under the SA- CR, should be set. The compliance with those criteria should be verified by competent authorities. Because residential real estate markets may differ from one Member States to another, the decision on whether to activate the transitionalspecific arrangement should be left to individual Member States. The use of the transitionalspecific arrangement should be monitored by EBA.
Amendment 342 #
Proposal for a regulation
Recital 27
Recital 27
(27) Specialised lending exposures have risk characteristics that differ from general corporate exposures. It is thus appropriate to provide for a transitional period during whichadjust the LGD input floor applicable to specialised lending exposures is reducedn order to reflect the lower risk of these exposures.
Amendment 343 #
Proposal for a regulation
Recital 29
Recital 29
(29) To ensure a consistent approach for all RGLA-PSE exposures, a new RGLA- PSA exposure class should be created, independent from both sovereign and institutions exposure classes, and which should all be subject to the input floors provided by the new rules.
Amendment 345 #
Proposal for a regulation
Recital 30 a (new)
Recital 30 a (new)
(30 a) The introduction of the output floor could have a significant impact on own funds requirements for securitisation positions held by institutions using the Securitisation Internal Ratings Based Approach(SEC-IRBA). Although such positions are generally small relative to other exposures, the introduction of the output floor could affect the economic viability of the securitisation operation because of an insufficient prudential benefit of the transfer of risk. This would come at a juncture where the development of the securitisation market is part of the action plan on Capital Markets Union and also where originating banks might need to use securitisation more extensively in order to manage more actively their portfolios if they become bound by the output floor. This impact should therefore be mitigated by providing for a specific arrangement increasing the risk-sensitivity of the standardized approach of the purpose of the calculation of the output floor.
Amendment 347 #
Proposal for a regulation
Recital 36
Recital 36
(36) The new standardised approach for operational risk introduced by the BCBS combines an indicator that relies on the size of the business of an institution with an indicator that takes into account the loss history of that institution. The revised Basel standards envisage a number of discretions on how the indicator that takes into account the loss history of an institution may be implemented. Jurisdictions may disregard historical losses for the calculation of operational risk capital for all relevant institutions, or may take historical loss data into account even for institutions below a certain business size. To ensure a level playing field wIn order to incentivise credith in the Union and to simplify the calculation of operational risk capital, those discretions should be exercised in a harmonised manner for thstitutions to maintain a robust operational risk management framework it is appropriate to take minimum own funds requirements by disregarding historical operational loss data for all institutionto account credit institutions' historical losses in the calculation of their operational risk minimum own funds requirements.
Amendment 364 #
Proposal for a regulation
Recital 43 a (new)
Recital 43 a (new)
(43 a) Under the final Basel III reforms, the very short-term nature of SFTs is not well reflected in the Standardised Approach for credit risk, leading to own funds requirements calculated under that approach that could be excessively higher than own funds requirements calculated under the IRB approach and consequently affecting the liquidity of debt and securities markets, including the sovereign debt markets. The standardised approach is therefore adjusted in order to reflect the short-term nature of these exposures and mitigate the impact on the real economy and, in particular, on the financing of sovereigns.
Amendment 427 #
Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point s
Article 1 – paragraph 1 – point 1 – point s
Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 75e
Article 4 – paragraph 1 – point 75e
(75e) ‘exposure secured by residential property’, or ‘exposure secured by a mortgage on residential property’, or ‘exposure secured by residential property collateral’, or ‘exposure secured by residential immovable property’, means an exposure secured by a mortgage on residential property or secured by any other mechanisms other than mortgages but which are economically equivalent to mortgages and recognised as collateral on residential property under the applicable national law setting out the conditions for the establishment of those mechanismsan exposure regarded as such in accordance with Article 108(3);
Amendment 430 #
Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point s
Article 1 – paragraph 1 – point 1 – point s
Regulation (EU) No 575/2013
Article 4 – pargraph 1 – point 75g
Article 4 – pargraph 1 – point 75g
(75g) ‘exposure secured by immovable property’, or ‘exposure secured by a mortgage on immovable property’, or ‘exposure secured by immovable property collateral’ means an exposure secured by a mortgage on residential or commercial immovable property or secured by any other mechanisms other than mortgages but which are economically equivalent to mortgages and recognised as collateral on immovable property under the applicable national law setting out the conditions for the establishment of those mechanisms;an exposure regarded as such in accordance with Article 108(3);
Amendment 447 #
Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point y
Article 1 – paragraph 1 – point 1 – point y
Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 152 – point a
Article 4 – paragraph 1 – point 152 – point a
(a) an exposure for which, on a regular basis of at least every 12 months, the balanceamount to be repaid at the next scheduled repayment date is determined as the drawn amount at a predefined reference date or upon contractual repayment modalities, with all scheduled repayment date not later than after 12 months, provided that the balance hasamount or instalments owed to the bank have been repaid in full at each scheduled repayment date for the previous 12 months;
Amendment 493 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)
Article 1 – paragraph 1 – point 11 a (new)
Regulation (EU) No 575/2013
Article 47c – paragraph 4
Article 47c – paragraph 4
(11 a) Article 47c(4) is replaced by the following: 4. By way of derogation from paragraph 3 of this Article, the following factors shall apply to the part of the non-performing exposure guaranteed or insured by an official export credit agency or guaranteed or counter-guaranteed by an eligible protection provider referred to in points (a) to (e) of Article 201(1), unsecured exposures to which would be assigned a risk weight of 0 % under Chapter 2 of Title II of Part Three: (a) 0 for the secured part of the non- performing exposure to be applied during the period between one year and seven years following its classification as non- performing; and (b) 1 for the secured part of the non- performing exposure to be applied as of the first day of the eighth year following its classification as non-performing, unless the guarantee or insurance has been invoked by the institution and the eligible protection provider has assumed and, in line with article 213(1), fulfils all payment obligations of the obligor towards the institution in full and in accordance with the applicable payment schedule, in which case a factor of 0 for the secured part of the non-performing exposure will apply. Non-performing exposures guaranteed or insured by an official export credit agency are excluded from these requirements.
Amendment 606 #
Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a
Article 1 – paragraph 1 – point 23 – point a
Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point b
Article 92 – paragraph 3 – point b
Amendment 626 #
Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a
Article 1 – paragraph 1 – point 23 – point a
Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point c
Article 92 – paragraph 3 – point c
(c) for the purposes of complying with the obligations of this Regulation oin an individual basis, y case other total risk exposure amount of an institution which is neither a stand-alone institution in the EU nor a stand-alone subsidiary institution in a Member Statehan the cases referred to in point (a) of this paragraph, the total risk exposure amount shall be the un-floored total risk exposure amount calculated in accordance with paragraph 4.
Amendment 629 #
Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b
Article 1 – paragraph 1 – point 23 – point b
Regulation (EU) No 575/2013
Article 92 – paragraph 5a (new)
Article 92 – paragraph 5a (new)
Amendment 640 #
Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b
Article 1 – paragraph 1 – point 23 – point b
Regulation (EU) No 575/2013
Article 92 – paragraph 6
Article 92 – paragraph 6
Amendment 656 #
Proposal for a regulation
Article 1 – paragraph 1 – point 32
Article 1 – paragraph 1 – point 32
Regulation (EU) No 575/2013
Article 108 – paragraph 4 – point c
Article 108 – paragraph 4 – point c
(c) there is no mortgage lien on the residential property when the loan is granted and for the loans granted from 1 January 2024 the borrower is contractually committed not to grant any mortgage lien without the consent of the institution that originally granted the loan;
Amendment 657 #
Proposal for a regulation
Article 1 – paragraph 1 – point 32
Article 1 – paragraph 1 – point 32
Regulation (EU) No 575/2013
Article 108 – paragraph 4 – point e
Article 108 – paragraph 4 – point e
(e) the guarantor is an institution or a financial sector entity subject to capital requirements at least equivalentcomparable to those applicable to institutions or insurance undertakings;
Amendment 658 #
Proposal for a regulation
Article 1 – paragraph 1 – point 32
Article 1 – paragraph 1 – point 32
Regulation (EU) No 575/2013
Article 108 – paragraph 4 – point f
Article 108 – paragraph 4 – point f
(f) the guarantor has established a fully-funded mutual guarantee fund or equivalent protection for insurance undertakings to absorb credit risk losses, the calibration of which is periodically reviewed by its competent authority and is subject to yearlyperiodic stress testing, at least every two years;
Amendment 672 #
Proposal for a regulation
Article 1 – paragraph 1 – point 36 a (new)
Article 1 – paragraph 1 – point 36 a (new)
Regulation (EU) No 575/2013
Article 115 – paragraph 2 a new
Article 115 – paragraph 2 a new
2a . Member States may decide to assign a risk weight of 10% to exposures to regional governments or local authorities that are not referred to in paragraph 2 and 4 and are denominated and funded in the domestic currency of that regional government and local authority.
Amendment 674 #
Proposal for a regulation
Article 1 – paragraph 1 – point 36 b (new)
Article 1 – paragraph 1 – point 36 b (new)
Regulation (EU) No 575/2013
Article 116 – paragraph 4 a new
Article 116 – paragraph 4 a new
4a. Member States may decide to assign a risk weight of 10% to exposures to public sector entities of the Member States that are denominated and funded in the domestic currency of that public sector entity, unless the treatments set out in paragraph 4 apply.
Amendment 676 #
Proposal for a regulation
Article 1 – paragraph 1 – point 38
Article 1 – paragraph 1 – point 38
Regulation (EU) No 575/2013
Article 120 – paragraph 2 – introductory part
Article 120 – paragraph 2 – introductory part
2. Exposures with an origin residual maturity of three months or less for which a credit assessment by a nominated ECAI is available and exposures which arise from the movement of goods across national borders with an origin residual maturity of six months or less and for which a credit assessment by a nominated ECAI is available, shall be assigned a risk weight in accordance with Table 4 which corresponds to the credit assessment of the ECAI in accordance with Article 136.
Amendment 694 #
Proposal for a regulation
Article 1 – paragraph 1 – point 41
Article 1 – paragraph 1 – point 41
Regulation (EU) No 575/2013
Article 122a – paragraph 1 – point b
Article 122a – paragraph 1 – point b
(b) the exposure is not secured by immovable propertyrelated to the financing of real estate and is within the definitions orf otherwise related to the financing of real estate bject finance, project finance or commodities finance exposures laid down in paragraph 3;
Amendment 717 #
Proposal for a regulation
Article 1 – paragraph 1 – point 41
Article 1 – paragraph 1 – point 41
Regulation (EU) 575/2013
Article 122a – paragraph 3 – point c – introductory part
Article 122a – paragraph 3 – point c – introductory part
(c) where the purpose of a specialised lending exposure is to finance a project for the development or acquisition of large, complex and expensive installations, including power plants, chemical processing plants, mines, transportation infrastructure, environment, and telecommunications infrastructure, and the income to bin which the glenderated by the project is the money generated by the contracts for the output of the installation obtained from one or several parties which are no looks primarily to the revenues generated by the project, both as the source of repayment uander management control of the sponsor as security for the loan (‘project finance exposures’), institutions shall apply the following risk weights:
Amendment 732 #
Proposal for a regulation
Article 1 – paragraph 1 – point 41
Article 1 – paragraph 1 – point 41
Regulation (EU) 575/2013
Article 122a – paragraph 3 – point c – point ii – indent 3
Article 122a – paragraph 3 – point c – point ii – indent 3
— the obligor generates cash flows that are predictable and cover all future loan repayments, including possible repayments with cashflows generated over the remaining asset life;
Amendment 757 #
Proposal for a regulation
Article 1 – paragraph 1 – point 41
Article 1 – paragraph 1 – point 41
Regulation (EU) 575/2013
Article 122a – paragraph 3 – point e – introductory part
Article 122a – paragraph 3 – point e – introductory part
(e) for the purposes of point (c), the operational phase shall mean the phase in which the entity that was specifically created to finance the project, or that is economically comparable, meets both of the following conditions:
Amendment 759 #
Proposal for a regulation
Article 1 – paragraph 1 – point 41
Article 1 – paragraph 1 – point 41
Regulation (EU) 575/2013
Article 122a – paragraph 3 – point e – point ii
Article 122a – paragraph 3 – point e – point ii
(ii) the entity has a declining long term debtproject is in operation.
Amendment 833 #
Proposal for a regulation
Article 1 – paragraph 1 – point 47
Article 1 – paragraph 1 – point 47
Regulation (EU) No 575/2013
Article 126a – paragraph 2 – introductory part
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:
Amendment 878 #
Proposal for a regulation
Article 1 – paragraph 1 – point 53 – point a a (new)
Article 1 – paragraph 1 – point 53 – point a a (new)
Reglement (EU) 575/2013
Article 134 – paragraph 7 a new
Article 134 – paragraph 7 a new
7a . The risk weights applicable to securities financing transactions exposures shall be capped at 50% and 20% where the exposures residual maturities are respectively one year or less and 3 months or less
Amendment 917 #
Proposal for a regulation
Article 1 – paragraph 1 – point 64 – point c
Article 1 – paragraph 1 – point 64 – point c
Regulation (EU) No 575/2013
Article 151 – paragraph 11
Article 151 – paragraph 11
Amendment 919 #
Proposal for a regulation
Article 1 – paragraph 1 – point 64 – point c
Article 1 – paragraph 1 – point 64 – point c
Regulation (EU) No 575/2013
Article 151 – paragraph 13 – subparagraph 1
Article 151 – paragraph 13 – subparagraph 1
13. EBA shall develop draft regulatory technical standards to specify the treatment applicable to exposures belonging to the exposure class ‘corporates purchased receivables’ referred to in Article 147(2), point (c)(iii) and the exposure class ‘retail purchased receivables’ referred to in Article 147(2), point (d)(iii), for the purposes of calculating risk-weighted exposure amounts for the default risk and for the dilution risk of those exposures, including for the recognition of credit risk mitigation techniques, as well as the treatment applicable to exposures to purchased receivables under the Standardised Approach for Credit Risk.
Amendment 926 #
Proposal for a regulation
Article 1 – paragraph 1 – point 69
Article 1 – paragraph 1 – point 69
Regulation (EU) No 575/2013
Article 157 – paragraph 6 – subparagraph 2
Article 157 – paragraph 6 – subparagraph 2
EBA shall submit those draft regulatory technical standards to the Commission by 31 December 20265.
Amendment 932 #
Proposal for a regulation
Article 1 – paragraph 1 – point 74 - point b
Article 1 – paragraph 1 – point 74 - point b
Regulation (EU) No 575/2013
Article 161 – paragraph 4 – table 2a
Article 161 – paragraph 4 – table 2a
Amendment 938 #
Proposal for a regulation
Article 1 – paragraph 1 – point 75 – point a
Article 1 – paragraph 1 – point 75 – point a
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 beither be set at 2,5 years, except for exposures arising from securities financing transactions, for which M shall be 0,5 years or, alternatively, calculated in accordance with paragraph 2.
Amendment 939 #
Proposal for a regulation
Article 1 – paragraph 1 – point 75 – point a
Article 1 – paragraph 1 – point 75 – point a
Regulation (EU) No 575/2013
Article 162 – paragraph 1 – subparagraph 2
Article 162 – paragraph 1 – subparagraph 2
Amendment 944 #
Proposal for a regulation
Article 1 – paragraph 1 – point 75 – point c – point ii – indent -1 (new)
Article 1 – paragraph 1 – point 75 – point c – point ii – indent -1 (new)
Amendment 946 #
Proposal for a regulation
Article 1 – paragraph 1 – point 75 – point c – point ii – indent 1
Article 1 – paragraph 1 – point 75 – point c – point ii – indent 1
Regulation (EU) No 575/2013
Article 162 – paragraph 3 – subparagraph 2 –point b
Article 162 – paragraph 3 – subparagraph 2 –point b
(b) self-liquidating short-term trade finance transactions connected to the exchange of goods or services, including corporate purchased receivables, with referred to in Article 4(1), point (80); and corporate purchased receivables, provided that the respective exposures have a residual maturity of up to 1one year as referred to in Article 4(1), point (80);;
Amendment 947 #
Proposal for a regulation
Article 1 – paragraph 1 – point 75 – point c – point ii – indent 2
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
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.;
Amendment 957 #
Proposal for a regulation
Article 1 – paragraph 1 – point 89 – point b a (new)
Article 1 – paragraph 1 – point 89 – point b a (new)
Regulation (EU) No 575/2013
Article 178 – paragraph 1 – subparagraph 2
Article 178 – paragraph 1 – subparagraph 2
(b a) in paragraph 1, subparagraph 2 is replaced by the following : In the case of retail exposures and purchased receivables, institutions may apply the definition of default laid down in points (a) and (b) of the first subparagraph at the level of an individual credit facility rather than in relation to the total obligations of a borrower.
Amendment 968 #
Proposal for a regulation
Article 1 – paragraph 1 – point 91 – point a – point iii
Article 1 – paragraph 1 – point 91 – point a – point iii
Regulation (EU) No 575/2013
Article 181 – paragraph 1 – point k
Article 181 – paragraph 1 – point k
Amendment 969 #
Proposal for a regulation
Article 1 – paragraph 1 – point 91 – point b – point i
Article 1 – paragraph 1 – point 91 – point b – point i
Regulation (EU) No 575/2013
Article 181 – paragraph 2 – subparagraph 1 – point b
Article 181 – paragraph 2 – subparagraph 1 – point b
Amendment 971 #
Proposal for a regulation
Article 1 – paragraph 1 – point 92 – point a – point i
Article 1 – paragraph 1 – point 92 – point a – point i
Regulation (EU) No 575/2013
Article 182 – paragraph 1 – point c
Article 182 – paragraph 1 – point c
(c) institutions’ IRB-CCF shall reflect the possibility of additional drawings by the obligor up to and after the time a default event is triggered. The IRB-CCF shall incorporate a larger margin of conservatism where a stronger positive correlation can reasonably be expected between the default frequency and the magnitude of conversion factor;
Amendment 972 #
Proposal for a regulation
Article 1 – paragraph 1 – point 92 – point a – point ii
Article 1 – paragraph 1 – point 92 – point a – point ii
Regulation (EU) No 575/2013
Article 182 – paragraph 1 – point g
Article 182 – paragraph 1 – point g
(g) institutions’ IRB-CCF shall be developed using a 12-month fixed-horizon approach. For that purpose, for each observation in the reference data set, default outcomes shall be linked to relevant obligor and facility characteristics at a fixed reference date defined asup to 12 months prior to default day;
Amendment 977 #
Proposal for a regulation
Article 1 – paragraph 1 – point 92 – point b
Article 1 – paragraph 1 – point 92 – point b
Regulation (EU) No 575/2013
Article 182 – paragraph 3 – subparagraph 1
Article 182 – paragraph 3 – subparagraph 1
Amendment 1036 #
Proposal for a regulation
Article 1 – paragraph 1 – point 130 – point -a (new)
Article 1 – paragraph 1 – point 130 – point -a (new)
Regulation (EU) No 575/2013
Article 274 paragraph 2
Article 274 paragraph 2
(- a) paragraph 2 is replaced by the following: "2. Institutions shall calculate the exposure value of a netting set under the standardised approach for counterparty credit risk as follows: Exposure value = α · (RC + PFE) where: RC = the replacement cost calculated in accordance with Article 275; and PFE = the potential future exposure calculated in accordance with Article 278; α = 1,4. for netting sets with non-financial counterparties as defined in point(9) of Article 2 of Regulation (EU) No 648/2012, or with non-financial counterparties established in a third country α = 1.4 for all other nettings sets " Or. en (https://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex:32013R0575)
Amendment 1042 #
Proposal for a regulation
Article 1 – paragraph 1 – point 131
Article 1 – paragraph 1 – point 131
Regulation (EU) No 575/2013
Article 312
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.
Amendment 1054 #
Proposal for a regulation
Article 1 – paragraph 1 – point 131
Article 1 – paragraph 1 – point 131
Regulation (EU) No 575/2013
Article 314 – paragraph 6 – subparagraph 1 – point a
Article 314 – paragraph 6 – subparagraph 1 – point a
(a) the components of the business indicator by developing a list of typical sub-items, taking into account international regulatory standards; for the Financial Component calculation, this list shall not be used to separate TC and BC components and shall not prevent an institution from addressing sub-items to the TC or the BC components according to their prudential boundary defined in Part three, Title I, Chapter 3.
Amendment 1061 #
Proposal for a regulation
Article 1 – paragraph 1 – point 131
Article 1 – paragraph 1 – point 131
Amendment 1062 #
Proposal for a regulation
Article 1 – paragraph 1 – point 131
Article 1 – paragraph 1 – point 131
Regulation (EU) No 575/2013
Article 315 b (new)
Article 315 b (new)
Amendment 1063 #
Proposal for a regulation
Article 1 – paragraph 1 – point 131
Article 1 – paragraph 1 – point 131
Regulation (EU) No 575/2013
Article 315 c (new)
Article 315 c (new)
Amendment 1064 #
Proposal for a regulation
Article 1 – paragraph 1 – point 131
Article 1 – paragraph 1 – point 131
Regulation (EU) No 575/2013
Article 316 – paragraph 1
Article 316 – paragraph 1
1. Institutions with a business indicator equal to or exceeding EUR 750 millionclassified within categories 1b or 2 pursuant to Article 315a shall calculate annual operational risk losses as the sum of all net losses over a given financial year, calculated in accordance with Article 318(1), that are equal to or exceed the loss data thresholds set out in Article 319, paragraphs 1 or 2, respectively.
Amendment 1066 #
Proposal for a regulation
Article 1 – paragraph 1 – point 131
Article 1 – paragraph 1 – point 131
Regulation (EU) No 575/2013
Article 316 – paragraph 1 – subparagraph 2
Article 316 – paragraph 1 – subparagraph 2
By way of derogation from the first subparagraph, competent authorities may grant a waiver from the requirement to calculate an annual operational risk loss to institutions with a business indictor that does not exceed EUR 1 billionclassified within category 1b, provided that the institution has demonstrated to the satisfaction of the competent authority that it would be unduly burdensome for the institution to apply the first subparagraph.
Amendment 1077 #
Proposal for a regulation
Article 1 – paragraph 1 – point 131
Article 1 – paragraph 1 – point 131
Regulation (EU) 575/2013
Article 319 – paragraph 2
Article 319 – paragraph 2
2. Without prejudice to paragraph 1, and for the purposes of Article 446, institutions shall also calculate the annual operational risk loss referred to in Article 316(1), taking into account from the loss data set operational risk events with a net loss, calculated in accordance with Article 318, that are equal to or above EUR 100 000An institution may request permission from the competent authorities to increase the threshold mentioned in the paragraph 1 of this Article to EUR 100,000, provided that this institution is classified within the category 2 pursuant to Article 315a and can demonstrate to the satisfaction of the competent authority: (a) that the conditions set in the Article 323 are met; (b) that the change of the threshold is not requested in order to materially reduce the operational risk related own funds requirements of the institution; (c) that the change of the threshold can be justified on the basis of the nature of the institution, its activities, and the characteristics of losses historically observed; (d) that this new threshold would not have a material adverse impact on the solvency of the institution.
Amendment 1078 #
Proposal for a regulation
Article 1 – paragraph 1 – point 131
Article 1 – paragraph 1 – point 131
Regulation (EU) No575/2013
Article 319 – paragraph 3 a (new)
Article 319 – paragraph 3 a (new)
3 a. The EBA shall develop draft regulatory technical standards to specify the criteria to be assessed by the competent authority pursuant to paragraph 2 of this Article. EBA shall submit those draft regulatory technical standards to the Commission by[OP please insert the date = 12 months after the entry into force of this Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 1090 #
Proposal for a regulation
Article 1 – paragraph 1 – point 131
Article 1 – paragraph 1 – point 131
Regulation (EU) No 575/2013
Article 322 – paragraph 2
Article 322 – paragraph 2
2. Competent authorities shall periodically review the quality of the loss data of an institution that calculates annual operational risk losses in accordance with Article 316(1). Competent authorities shall carry out such review at least every three years for an institutions with a business indicator above EUR 1 billionin the category 2 pursuant to article 315a.
Amendment 1105 #
Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point d
Article 1 – paragraph 1 – point 136 – point d
Regulation (EU) No 575/2013
Article 325 j – paragraph 6 – introductory part
Article 325 j – paragraph 6 – introductory part
6. Institutions that do not have adequate data or information tTo calculate the own funds requirements for market risk of a CIU position in accordance with the approach set out in paragraph 1, point (a), institutions may rely on a third party to perform such calculation, provided that all the following conditions are met:
Amendment 1106 #
Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point d
Article 1 – paragraph 1 – point 136 – point d
Regulation (EU) No 575/2013
Article 325 j – paragraph 6 – point a – point ii a (new)
Article 325 j – paragraph 6 – point a – point ii a (new)
(ii a) a third-party vendor on condition that the data, information or risk metrics are provided by or calculated from the third parties of subparagraphs (i) or (ii) or another such third-party vendor;
Amendment 1107 #
Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point d
Article 1 – paragraph 1 – point 136 – point d
Regulation (EU) No 575/2013
Article 325 j – paragraph 6 – point b
Article 325 j – paragraph 6 – point b
(b) the third party provides the institution with the adequate data or information missingdata, information or risk metrics to calculate the own fund requirement for market risk of the CIU position in accordance with the approach referred to in in paragraph 1, point (a);
Amendment 1108 #
Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point d
Article 1 – paragraph 1 – point 136 – point d
Regulation (EU) No 575/2013
Article 325 j – paragraph 6 – point c
Article 325 j – paragraph 6 – point c
(c) an external auditor of the institution has confirmed the adequacy of the third party's data or, information or risk metrics referred to in point (b) and the institution’s competent authority has unrestricted access to these data and, information or risk metrics upon request.
Amendment 1109 #
Proposal for a regulation
Article 1 – paragraph 1 – point 139 a (new)
Article 1 – paragraph 1 – point 139 a (new)
Regulation (EU) No 575/2013
Article 325u – paragraph 4 – point c a (new)
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.
Amendment 1110 #
Proposal for a regulation
Article 1 – paragraph 1 – point 139 b (new)
Article 1 – paragraph 1 – point 139 b (new)
Regulation (EU) No 575/2013
Article 325u – paragraph 5 a (new)
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.
Amendment 1125 #
Proposal for a regulation
Article 1 – paragraph 1 – point 159 – point a – point -i (new)
Article 1 – paragraph 1 – point 159 – point a – point -i (new)
Regulation (EU) No 575/2013
Article 325bp – paragraph 5 – point a
Article 325bp – paragraph 5 – point a
(a) t-i) point (a) is replaced by the following: (a) the default probabilities shall not be floored for exposures to which a 0% risk- weight is applied in accordance with Articles 114 to 118 of this Regulation and for covered bonds to which a 10% risk- weight is applied in accordance with article 129. The default probabilities shall be floored at 0,03 % otherwise;
Amendment 1149 #
Proposal for a regulation
Article 1 – paragraph 1 – point 172 a (new)
Article 1 – paragraph 1 – point 172 a (new)
Regulation (EU) 575/2013
Article 429a – paragraph 1 – point e
Article 429a – paragraph 1 – point e
(172 a) in article 429a(1), point (e) is replaced by the following : (e) where the institution is not a public development credit institution, the parts of exposures arising from granting or passing-through promotional loans to other credit institutions;
Amendment 1172 #
Proposal for a regulation
Article 1 – paragraph 1 – point 187
Article 1 – paragraph 1 – point 187
Regulation (EU) No 575/2013
Article 446 – paragraph 2 a (new)
Article 446 – paragraph 2 a (new)
2 a. Institutions that calculate an internal loss multiplier in accordance with Article 315b shall disclose the following information: (a) the internal loss data for each of the years with high-quality loss data used to calculate the loss component in accordance with Article 315c; (b) the internal loss multiplier and the number of years with high-quality loss data used to calculate the loss component in accordance with Article 315c.’ For the purposes of paragraphs 2 and 3, institutions shall report on both thresholds independently of which threshold they use.
Amendment 1218 #
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragraph 2 – introductory part
Article 465 – paragraph 2 – introductory part
2. By way of derogation from Article 92(3), point (a), EU parent institutions, EU parent financial holding companies or an EU parent mixed financial holding companies, stand-alone institutions in the EU or stand-alone subsidiary institutions in Member States may, until 31 December 2029, apply the following formula when calculating TREA:
Amendment 1230 #
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 1
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, or stand-alone institutions in the EU or stand- alone subsidiary institutions in Member States may, until 31 December2032,may 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 %.
Amendment 1249 #
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 2
Article 465 – paragraph 3 – subparagraph 2
EBA shall monitor the use of the transitional treatment laid down in the first subparagraph and assess - the availability of credit assessments by nominated ECAIs for exposures to corporates; - the development of European credit rating agencies, barriers of entry to the market of new European credit rating agencies, rate of uptake of European corporates choosing to be rated by one or multiple of these agencies; - the development of private or public led solutions such as credit benchmarking and central bank ratings to provide available and reliable alternative assessment of credit risk for the purpose of calculating the output floor and how this could be implemented in legislation; - evidence that the 65% RW has led to inappropriate risk weighting of exposures; - the approaches of other jurisdictions concerning in the application of the output floor to unrated corporate exposures and long-term level playing field considerations that could arise as a result. EBA shall report its findings to the Commission by 31 December 2028.
Amendment 1270 #
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 3
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.
Amendment 1290 #
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 1 – introductory part
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.
Amendment 1302 #
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 1 – point a
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,
Amendment 1312 #
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 1 – point b
Article 465 – paragraph 5 – subparagraph 1 – point b
(b) until 31 December 2029, 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.
Amendment 1371 #
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 5
Article 465 – paragraph 5 – subparagraph 5
EBA shall monitor the use of the transitionalspecific treatment in the first subparagraph and report to the Commission by 31 December 2028upon the completion of the comprehensive review of the Capital Markets Union Action Plan, notably but not limited to, the EU securitisation framework, on the appropriateness of the associated risk weights, by 31 December 2028.
Amendment 1385 #
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragrpah 5 – subparagraph 6
Article 465 – paragrpah 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.;
Amendment 1388 #
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragraph 5 a (new)
Article 465 – paragraph 5 a (new)
Amendment 1407 #
Proposal for a regulation
Article 1 – paragraph 1 – point 199
Article 1 – paragraph 1 – point 199
Regulation (EU) No 575/2013
Article 495a – paragraph 3
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]assign a risk weight of 100% to equity exposures to entities of which they have been a shareholder at [adoption date] for six consecutive years and over which they exercise at least significant influence or control 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 and an undertaking.
Amendment 1420 #
Proposal for a regulation
Article 1 – paragraph 1 – point 199
Article 1 – paragraph 1 – point 199
Regulation (EU) No 575/2013
Article 495b – paragraph 2 – subparagraph 1
Article 495b – paragraph 2 – subparagraph 1
2. EBA shall prepare a report on the appropriate calibration of risk parameters, including haircut parameter, applicable to specialised lending exposures under the IRB Approach, and in particular on own estimates of LGD and LGD input floors, for each specific category of specialised lending as defined in Articles 122a(3)(a), 122a(3)(b) and 122a(3)(c). EBA shall in particular include in its report data on average numbers of defaults and realised losses observed in the Union for different samples of institutions with different business and risk profiles. EBA shall recommend specific calibrations of risk parameters that would reflect the specific and different risk profile of each of the aforementioned categories of specialised lending exposures.
Amendment 1431 #
Proposal for a regulation
Article 1 – paragraph 1 – point 199
Article 1 – paragraph 1 – point 199
2. EBA shall prepare a report on the appropriate calibrations of risk parameters associated with leasing exposures under the Standardised Approach for Credit Risk and the IRB Approach, and in particular on the LGDs and Hc provided for in Article 230. 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 properties and different types of institutions practicing leasing activities.
Amendment 1513 #
Proposal for a regulation
Article 1 – paragraph 1 – point 203
Article 1 – paragraph 1 – point 203
Regulation (EU) No 575/2013
Article 506 – paragraph 1
Article 506 – paragraph 1
By 31 December 20265, EBA shall report to the Commission on the eligibility and use of policy insurance as credit risk mitigation techniques and on the appropriateness of the associated risk parameters referred to in Part Three, Title II, Chapter 3 and 4.
Amendment 1541 #
Proposal for a regulation
Annex – table– bucket 2
Annex – table– bucket 2
Regulation (EU) No 575/2013
Annex 1
Annex 1
Bucket Items 2 2 Note issuance facilities (NIFs) and revolving underwriting facilities (RUFs) regardless of the maturity of the underlying facility; Performance bonds, bid bonds, w Trade finance off-balance sheet items, namely documentary credits issued or confirmed (see also ‘Bucket 4’); Other off-balance sheet items: (i) shipping guarrantiees, customs and standby letters ofx bonds; credit related to particular transactions and similar transaction- related contingent items; Off-balance sheet items not constituting a credit substitute where not explicitly included in any other category.(ii) undrawn credit facilities (agreements to lend, purchase securities, provide guarantees or acceptance facilities) with an original maturity of more than one year; (iii) note issuance facilities (NIFs) and revolving underwriting facilities (RUFs; Other off-balance sheet items carrying similar risk, as communicated to EBA.
Amendment 1550 #
Proposal for a regulation
Annex – table – column 2 row – 13 -a (new)
Annex – table – column 2 row – 13 -a (new)
Regulation (EU) No 575/2013
Annex 1
Annex 1
Amendment 1561 #
Proposal for a regulation
Article 1a (new) – paragraph 1 – point 1 new
Article 1a (new) – paragraph 1 – point 1 new
(1) In Article 3, paragraph 6 is replaced by the following : ‘6. Point (53), as regards Article 104a of Regulation (EU) No 575/2013, and points (55) and (69) of Article 1 of this Regulation, containing the provisions on the introduction of the new own funds requirements for market risk, shall apply from 28 June 2023.1 January 2025.’;