34 Amendments of Isabel BENJUMEA BENJUMEA related to 2015/0270(COD)
Amendment 4 #
Proposal for a regulation
Recital 1
Recital 1
(1) Over the past years, the Union has made progress in creating an internal market for banking services. A better integrated internal market for banking services is essential in order to foster economic growth in the Unionand the competitiveness of European financial markets, to safeguard the stability of the banking system and to protect depositors, as well as to give greater impetus to the Capital Markets Union (CMU) project.
Amendment 5 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1a) The 2008 global financial crisis exposed the vulnerabilities in the financial and banking sector, highlighting the close link between a country’s fiscal health and that of its banks. In response to this complex scenario, in 2012 the European authorities launched an ambitious project to create a Banking Union as a mechanism to establish a strong, transparent and secure European banking system with a view to moving towards a genuine Economic and Monetary Union in Europe.
Amendment 6 #
Proposal for a regulation
Recital 1 b (new)
Recital 1 b (new)
(1b) A completed Banking Union would be a positive development for citizens and the EU economy, providing the basis for a more stable banking system, the reduction of systemic risk, enhanced competition, improved consumer choice, increased opportunities for cross-border banking and access to retail financial services, greater economic investment, better access to funding for households and businesses, and the reduction of costs for banking customers;
Amendment 7 #
Proposal for a regulation
Recital 2
Recital 2
(2) On 18 October 2012, the European Council concluded that "In the light of the fundamental challenges facing it, the Economic and Monetary Union (EMU) needs to be strengthened to ensure economic and social welfare as well as stability and sustained prosperity" and "that the process towards deeper economic and monetary union should build on the Union institutional and legal framework and be characterised by openness and transparency towards Member States whose currency is not the euro and by respect for the integrity of the internal market". To that end, the Banking Union has been established, underpinned by a comprehensive and detailed single rulebook for financial services for the internal market as a whole. The process towardsof establishing the Banking Union has been characterised by openness and transparency towards non-participating Member States and byrespect for the integrity of the internal marketrespect for the integrity of the internal market, but also by a strong prevalence of national interests over European interests.
Amendment 8 #
Proposal for a regulation
Recital 4
Recital 4
(4) While key steps have been made towards ensuring the efficient functioning of the Banking Union, with the Single Supervisory Mechanism (the 'SSM') established by Council Regulation (EU) No 1024/201311 ensuring that the Union's policy relating to the prudential supervision of credit institutions in the euro area Member States and those non euro area Member States who choose to participate in the SSM (the 'participating Member States') is implemented in a coherent and effective manner and with the Single Resolution Mechanism (the ‘SRM’) established by Regulation (EU) No 806/2014 ensuring a consistent framework for the resolution of banks that are failing or likely to fail in the participating Member States,further steps are still neededto completethe Banking Union. no real political impetus has been givento the development of the third pillar ofthe Banking Union: the creation of the European Deposit Insurance Scheme (EDIS). __________________ 11 Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions (OJ L 287, 29.10.2013, p. 63).
Amendment 10 #
Proposal for a regulation
Recital 5 a (new)
Recital 5 a (new)
(5a) The creation of a European Deposit Insurance Scheme would not only increase confidence among European depositors in the financial markets, but would also reduce risks for consumers, while facilitating access to a wider international choice of financial products and promoting the stability and integration of the European banking system.
Amendment 13 #
Proposal for a regulation
Recital 6
Recital 6
(6) The recent crisis has shown that the functioning of the internal market may be under threat and that there is an increasing risk of financial fragmentation. The failure of a bank that is relatively large compared to the national banking sector or the concurrent failure of a part of the national banking sector may cause national DGSs to be vulnerable to large local shocks, even with the additional funding mechanisms provided by Directive 2014/49/EU of the European Parliament and of the Council12. This vulnerability of national DGSs to large local shocks can contributetomakes it an urgent necessity to establish the European Deposit Insurance Scheme – a mechanism to shield the network of national schemes against local shocks avoiding adverse feedback between banks and their national sovereign undermining the homogeneity of protection for deposits and contributing to a lack of confidence among depositors and resulting in market instability. __________________ 12 Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes (OJ L 173, 12.6.2014, p. 149).
Amendment 14 #
Proposal for a regulation
Recital 6
Recital 6
(6) The recent crisis hascrisis of the last two decades have shown that the functioning of the internal market may be under threat and that there is an increasing risk of financial fragmentation. The failure of a bank that is relatively large compared to the national banking sector or the concurrent failure of a part of the national banking sector may cause national DGSs to be vulnerable to large local shocks, even with the additional funding mechanisms provided by Directive 2014/49/EU of the European Parliament and of the Council12. This vulnerability of national DGSs to large local shocks can contribute to adverse feedback between banks and their national sovereign undermining the homogeneity of protection for deposits and contributing to a lack of confidence among depositors and resulting in market instability. __________________ 12 Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes (OJ L 173, 12.6.2014, p. 149).
Amendment 18 #
Proposal for a regulation
Recital 7
Recital 7
(7) The absence of a homogenous level of depositor protection can distort competition, hinder competitiveness and create an effective barrier for the freedoms of establishment and free provision of services by credit institutions within the internal market. A common deposit insurance scheme is therefore urgent and essential for the completion of the internal market in financial services.
Amendment 19 #
Proposal for a regulation
Recital 7
Recital 7
(7) The absence of a homogenous level of depositor protection can distort competition and create an effective barrier for the freedoms of establishment and free provision of services by credit institutions within the internal market. A common deposit insurance scheme is therefore essential and urgent for the completion of the internal market in financial services.
Amendment 30 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
(13a) The framework for the application of this Regulation should ensure a consistent and efficient approach towards all participating institutions, without exceptions for the institutional protection schemes referred to in Article 113(7) of Regulation No 575/2013, regardless of their size or business model. Only non- discriminatory treatment between national deposit mechanisms can contribute to preserving financial stability, minimising the risks to taxpayers’ money and ensuring a level playing field across the Union, while taking due account of the principle of subsidiarity.
Amendment 41 #
Proposal for a regulation
Recital 17
Recital 17
(17) EDIS should progressively evolve from a reinsurance schemeliquidity mechanism into a fully mutualised co-insurance scheme over a number of years. In order for the EDIS to provide the funding and cover the losses of participating deposit guarantee schemes, it will be necessary for the European Commission to publish a new legislative proposal to move forward with the subsequent phases of the EDIS. In the context of efforts to deepen the EMU, together with the work on the establishment of bridge-financing arrangements for the Single Resolution Fund (SRF) and on developing a common fiscal backstop, this step is necessary to reduce the bank/sovereign links in individual Member States by means of steps towards risk sharing among all the Member States in the Banking Union, and thereby to reinforce the Banking Union in achieving its key objective. However, such risk sharing implied by steps to reinforce Banking Union must proceed in parallel with risk reducing measures designed to break the bank-sovereign link more directly.
Amendment 42 #
Proposal for a regulation
Recital 17
Recital 17
(17) EDIS should progressively evolve from a reinsurance scheme into a fully mutualised co-insurance scheme over a number of years. In the context of efforts to deepen the EMU, together with the work on the establishment of bridge-financing arrangements for the Single Resolution Fund (SRF) and on developing a common fiscal backstop, this step is necessary to reduce the bank/sovereign links in individual Member States by means of steps towards risk sharing among all the Member States in the Banking Union, and thereby to reinforce the Banking Union in achieving its key objective. However, such risk sharing implied by steps to reinforce Banking Union must proceed in parallel with risk reducing measures designed to break the bank-sovereign link more directly.
Amendment 43 #
Proposal for a regulation
Recital 17 a (new)
Recital 17 a (new)
(17a) The proposal for an EDIS as a common system providing liquidity support in addition to national DGSs is only a first step in the right direction to achieve the objective of ensuring financial stability and depositor confidence. However, a more ambitious approach towards a fully mutualised EDIS is still needed. Increasing the mutual insurance of participating DGSs is a necessary step towards ultimately achieving a homogenous deposit insurance system that increases the effectiveness and credibility of deposit protection and limits the link between a bank and its sovereign.
Amendment 46 #
Proposal for a regulation
Recital 18
Recital 18
(18) EDIS should be established in three sequential stages, firstcomprise a reinsurance scheme that covers a share of the liquidity shortfall and of the excess losses of participating DGSs, followed by a co- insurance scheme that covers a gradually increasing share of the liquidity shortfall and losses of participating DGSs and eventually resulting in a fullwith the aim of achieving a fully mutualised insurance scheme that covers all liquidity needs and losses of participating deposit guarantee schemes.
Amendment 50 #
Proposal for a regulation
Recital 20
Recital 20
(20) As the Deposit Insurance Fund, in the re-insurance initialstage, would only provide an additional source of funding and would only weaken the link between banks and their national sovereign, without however ensuring that all depositors in the Banking Union enjoy an equal level of protection, the reinsurance stage should, after three years, gradually progress should be a progressive evolution into a co- insurance scheme and ultimately into a fully mutualised deposit insurance scheme through a legislative proposal by the European Commission within two years.
Amendment 51 #
Proposal for a regulation
Recital 20
Recital 20
(20) As the Deposit Insurance Fund, in the re-insurance stage, would only provide an additional source of funding and would only weaken the link between banks and their national sovereign, without however ensuring that all depositors in the Banking Union enjoy an equal level of protection, the reinsurance stage should, after three years, gradually progress into a co- insurance scheme and ultimately into a fully mutualised deposit insurance scheme.
Amendment 54 #
Proposal for a regulation
Recital 21
Recital 21
(21) While the reinsurance and coinsurance stages would share many common features, ensuring a smooth gradual evolution, pay-outs under the co- insurance stage would be shared between national DGS and the Deposit Insurance Fund as of the first euro of loss. The relative contribution from the Deposit Insurance Fund would gradually increase to 100 percent, resulting in the full mutualisation of depositor risk across the Banking Unionafter four years.
Amendment 55 #
Proposal for a regulation
Recital 21
Recital 21
(21) While the reinsurance and coinsurance stages would share many common features, ensuring a smooth gradual evolution, pay-outs under the co- insurance stage would be shared between national DGS and the Deposit Insurance Fund as of the first euro of loss. The relative contribution from the Deposit Insurance Fund would gradually increase to 100 percent, resulting in the full mutualisation of depositor risk across the Banking Union after four years.
Amendment 66 #
Proposal for a regulation
Recital 45
Recital 45
(45) The Commission should review the application ofthis Regulation in order to assess its impact on the internal market andto determine whether any modifications or further developments are needed, within two years, complementthis Regulation with a new legislative proposalto implement the subsequent phases of EDIS in order to improve the efficiency and the effectiveness of the EDISconsolidate a fully mutualised European Deposit Insurance Scheme.
Amendment 77 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Regulation (EU) No 806/2014
Article 1 – paragraph 2 – subparagraph 1 – introductory part
Article 1 – paragraph 2 – subparagraph 1 – introductory part
2. In addition, this Regulation establishes the initial stage of a European Deposit Insurance Scheme ('EDIS') in three successive stages:
Amendment 81 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Regulation (EU) No 806/2014
Article 1 – paragraph 2 – subparagraph 1 – indent 1
Article 1 – paragraph 2 – subparagraph 1 – indent 1
– a reinsurance scheme that,to a certain extent, provides funding and covers a share ofthe losses of participating deposit guarantee schemes in accordance with Article 41aoperating as a liquidityscheme providing loansto participating deposit guarantee schemes in accordance with Article 41a, withthe objectiveof moving towards a full insurance scheme with loss coverage at a later stage, following a further proposal by the Commission within 2 years of the date of entry into force of this Regulation;
Amendment 84 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Regulation (EU) No 806/2014
Article 1 – paragraph 2 – subparagraph 1 – indent 2
Article 1 – paragraph 2 – subparagraph 1 – indent 2
Amendment 89 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Regulation (EU) No 806/2014
Article 1 – paragraph 2 – subparagraph 1 – indent 3
Article 1 – paragraph 2 – subparagraph 1 – indent 3
Amendment 101 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Regulation (EU) No 806/2014
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
(a) all credit institutions established in a participating Member State, without exceptions for specific national instruments;
Amendment 107 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Regulation(EU) No 806/2014
Article 2 – paragraph 2 – subparagraph 1 – point a
Article 2 – paragraph 2 – subparagraph 1 – point a
(a) participating deposit-guarantee schemes as defined in point (1) of Article 3(1a), without exceptions for specific national instruments;
Amendment 127 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) No 806/2014
Article 41a – paragraph 2
Article 41a – paragraph 2
2. In case a participating DGS encounters a payout event or is used in resolution in accordance with Article 79 of this Regulation, it may claim funding from the DIF of up to 205%of its liquidity shortfall as set out in Article 41b.
Amendment 134 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) No 806/2014
Article 41 a – paragraph 3
Article 41 a – paragraph 3
3. The DIF shall also cover 205%of the excess loss of the participating DGS as set out in Article 41c. The participating DGS shall repay the amount of funding it obtained under paragraph 2 of this Article, less the amount of excess loss cover, in accordance with the procedure set out in Article 41o.
Amendment 136 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) No 806/2014
Article 41 a – paragraph 4
Article 41 a – paragraph 4
4. Neither the funding nor the excess loss cover shall exceed the lower of 205%of the initial target level of the DIF as set out in Article 74b(1) of this Regulation and 10 times the target level of the participating DGS as defined in the first subparagraph of Article 10(2) of Directive 2014/49/EU.
Amendment 154 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) No 806/2014
Article 41 d – paragraph 1
Article 41 d – paragraph 1
1. As from the end of the re-insurance period, the participating DGS shall be co- insured by EDIS in accordance with this Chapter for a period of fourthree years (‘co- insurance period’).
Amendment 159 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) No 806/2014
Article 41 e – paragraph 1 –indent 1
Article 41 e – paragraph 1 –indent 1
– in the first year of the co-insurance period it shall be 205%;
Amendment 160 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) No 806/2014
Article 41 e – paragraph 1 –indent 2
Article 41 e – paragraph 1 –indent 2
– in the second year of the co- insurance period it shall 450%;
Amendment 161 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) No 806/2014
Article 41 e – paragraph 1 –indent 3
Article 41 e – paragraph 1 –indent 3
– in the third year of the co-insurance period it shall be 6075%;
Amendment 162 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) No 806/2014
Article 41 e – paragraph 1 –indent 4
Article 41 e – paragraph 1 –indent 4