Activities of Billy KELLEHER related to 2015/0270(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 806/2014 in order to establish a European Deposit Insurance Scheme
Amendments (13)
Amendment 39 #
Proposal for a regulation
Recital 17
Recital 17
(17) EDIS I should progressively evolve from a reinsurance scheme intobe considered a first step towards a fully mutualised co- insurance scheme over a number of years. EDIS I should establish a liquidity support mechanism with the ambition to progressively evolve over time into a fully-mutualised insurance scheme. 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 isa fully mutualised co- insurance scheme is ultimately 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 paralthe progress made towards completing the Banking Union is not yet sufficient to make a fully-fledged EDIS feasible. The establishment of EDIS I, therefore, reflects the current level of integration and trust amongst the national banking sectors. In time, and coupleld with risk reducing measures designed to break the bank-sovereign link more directlyfurther measures to reinforce the Banking Union and reduce the divergence in the degrees of risk amongst participants, EDIS I should serve to strengthen trust amongst the national banking sectors and facilitate progress towards a fully-mutualised co- insurance scheme.
Amendment 129 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) 806/2014
Article 41 a – paragraph 2
Article 41 a – 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 20% of its liquidity shortfall as set out in Article 41b.
Amendment 133 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) 806/2014
Article 41 a – paragraph 3
Article 41 a – paragraph 3
3. The DIF shall also cover 20% 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 covIn case a participating DGS encounters a payout event or is used in resolution in accordance with Article 79 of this Regulation, it may request a loan from the DIF wher,e in accordance with the procedure set out inArticle 41ots intervention will diminish its available financial means below 15% of its target level.
Amendment 140 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation 806/2014
Article 41 b – paragraph 1 – introductory part
Article 41 b – paragraph 1 – introductory part
1. In case the participating DGS encounters a payout event, its liquidity shortfall shall be calculated as the total amount of covered deposits held by the credit institution referred to under 2(2), point b, andwithin the meaning of Article 6(1) and (2)of the Directive 2014/49/EU that is held by the credit institution at the time of the payout event less: in accordance with Articles 10(2) and 10(3) of that Directive.
Amendment 231 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) No 806/2014
Article 41 q a (new)
Article 41 q a (new)
Article 41qa Terms of loans provided by the DIF 1. The Board shall determine thekey financial terms and conditions of the liquidity facility in a standardised agreement. 2. The Board and the participating DGS that has requested liquidity support in accordance with Article 41a shall enter into an agreement based on the standardized agreement as referred to in paragraph 1. 3. The interest rate on loans provided by the DIF shall be: (i) 0% for the first tranche of loans up to the total amount of contributions transferred to the DIF by the relevant DGS in accordance with Article 74c(1); (ii) equal to the ECB marginal facility rate for the subsequent tranches of loans that exceed the total amount of contributions transferred to the DIF by the relevant DGS.
Amendment 243 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34
Article 1 – paragraph 1 – point 34
Regulation (EU) No 806/2014
Article 74 a – paragraph 1 a (new)
Article 74 a – paragraph 1 a (new)
1a. The transfer from participating DGS each year shall be the sum of the individual contribution of each participating credit institution based on: a) a flat contribution, that is pro-rata based on the amount of an institution's covered deposits, with respect to the total covered deposits in the credit institutions referred to in Article 2(2), point (b); b) a risk-adjusted contribution reflecting the degree of risk of the DGS members relative to the banking union as a whole.
Amendment 272 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34
Article 1 – paragraph 1 – point 34
Regulation (EU) No 806/2014
Article 74 c – paragraph 5 –subparagraph 2
Article 74 c – paragraph 5 –subparagraph 2
Amendment 275 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34
Article 1 – paragraph 1 – point 34
Regulation (EU) No 806/2014
Article 74 c – paragraph 5 –subparagraph 3
Article 74 c – paragraph 5 –subparagraph 3
Amendment 277 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34
Article 1 – paragraph 1 – point 34
Regulation (EU) No 806/2014
Article 74 c – paragraph 5 –subparagraph 4 – introductory part
Article 74 c – paragraph 5 –subparagraph 4 – introductory part
Amendment 281 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34
Article 1 – paragraph 1 – point 34
Regulation (EU) No 806/2014
Article 74 c – paragraph 5 –subparagraph 4 – point e
Article 74 c – paragraph 5 –subparagraph 4 – point e
(e) the institution’s business model, governance, and management;
Amendment 282 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34
Article 1 – paragraph 1 – point 34
Regulation (EU) No 806/2014
Article 74 c – paragraph 5 –subparagraph 4 – point f a (new)
Article 74 c – paragraph 5 –subparagraph 4 – point f a (new)
(fa) the level of concentration of exposures to central government and central bank of the Member State where the credit institution is authorised;
Amendment 288 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34
Article 1 – paragraph 1 – point 34
Regulation (EU) No 806/2014
Article 74 c – paragraph 5 –subparagraph 4 – point f b (new)
Article 74 c – paragraph 5 –subparagraph 4 – point f b (new)
(fb) exposures to other members of the same DGS and risk of contagion;
Amendment 310 #
Proposal for a regulation
Article 1 – paragraph 1 – point 39 a (new)
Article 1 – paragraph 1 – point 39 a (new)
Regulation (EU) No 806/2014
Article 94 – paragraph 3 a (new)
Article 94 – paragraph 3 a (new)
39a. In Article 94, the following paragraph is added: ‘3a. By 31 December one year after entry into force of this amending Regulation the Commission shall review the functioning of EDIS I. The review shall assess in particular the following: (a) the adequacy of funding mechanism and target level of EDIS I, including the ratio between the flat-rate and risk- adjusted contributions, and the cases of use of the liquidity mechanism; (b) The target level of the EDIS I vis-a-vis the target levels of the participating DGS, taking into account the benefit of pooling of funds; (b) the scope of measures financed by EDIS I under article 41a and the entities referred to in Article 2(2), point (b); (c) the appropriateness and necessity of an extension of EDIS I from providing liquidity support to deposit insurance mechanisms, taking into account the progress made towards the completion of the banking union; (d) the appropriateness of introducing a publicly funded backstop mechanism or the DIF. The Commission shall submit a report to the European Parliament and the Council. Where appropriate the review shall be accompanied with a legislative proposal.