2 Amendments of Pervenche BERÈS related to 2018/0060(COD)
Amendment 85 #
Proposal for a regulation
Recital 7
Recital 7
(7) The longer an exposure has been non-performing, the lower the probability for the recovery of its value. Therefore, the portion of the exposure that should be covered by provisions, other adjustments or deductions should increase with time, following a pre-defined calendar. For NPEs purchased by an institution, given that the transaction is executed on the basis of a price taking into account the likelihood and magnitude of loss, the calculation of the vintage should be reset to zero on the date of purchase, instead of continuing the calendar from the date the exposures were originally classified as a NPEs on the balance sheet of the seller.
Amendment 136 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 2 – subparagraph 3 a (new)
Article 47a – paragraph 2 – subparagraph 3 a (new)
By way of derogation from the first subparagraph the exposure value of a non-performing exposure purchased by an institution maybe its nominal value without taking into account any specific credit risk adjustments, additional value adjustments in accordance with Articles 34 and105, amounts deducted in accordance with Article 36(1)(m),or other own funds reductions related to the exposure or partial write-offs made by the credit institution since the last time the exposure was classified as non- performing. Where required to ensure appropriate coverage of risks, competent authorities may force institutions to use instead the accounting value pursuant to the first subparagraph.