[ParlTrack]

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

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

Regulation (EU) No 575/2013
Article 47c – paragraph 4 a (new)

(-1) In Article 47c, the following paragraph is inserted: "4a. By way of derogation from paragraph 3 the following shall also apply to the part of the non-performing exposure guaranteed by an eligible provider referred to in points (a) to (e) of Article 201(1): (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."

2020/05/27
Committee: ECON

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

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

Regulation (EU) No 575/2013
Article 467a (new)

(1a) The following article is inserted: "Article 467a Prudential Filter 1. By way of derogation from Article 35 and until the end of the transitional period set out in paragraph 2 of this Article, institutions may include in their Common Equity Tier 1 capital the amount "A" calculated in accordance with the following formula: A=(a) x f Where(a) is the positive or negative amount of unrealized losses from 31 December 2019 accounted in “Fair value changes of debt instruments measured at fair value through other comprehensive income” of the balance sheet, corresponding to exposures to central governments, excluding those that are credit-impaired as defined in Appendix A to the Annex relating to IFRS 9 at each reporting date. 2. Institutions shall apply the following factors "f" to calculate the amount A referred in the first paragraph: (a) 1 during the period from 1 January 2020 to 31 December 2020; (b) 1 during the period from 1 January 2021 to 31 December 2021; (c) 0,75 during the period from 1 January 2022 to 31 December 2022; (d) 0,50 during the period from 1 January 2023 to 31 December 2023; (e) 0,25 during the period from 1 January 2024 to 31 December 2024. 3. An institution shall decide whether to apply the arrangements set out in this Article during the transitional period and shall inform the competent authority of its decision by [date to confirm]. Where an institution has received the prior permission of the competent authority, it may reverse once, during the transitional period, its initial decision."

2020/05/27
Committee: ECON

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 473a – paragraph 3 – point (b)

(b) the sum of the 12-month expected credit losses determined in accordance with paragraph 5.5.5 of the Annex relating to IFRS 9 and the amount of the loss allowance for lifetime expected credit losses determined in accordance with paragraph 5.5.3 of the Annex relating to IFRS 9 excluding the loss allowance for lifetime expected credit losses for financial assets that are credit-impaired as defined in Appendix A to the Annex relating to IFRS 9 as of 1 January 2020 or on the date of initial application of IFRS 9, whichever is later. Institutions may replace the reference date mentioned above by 1 January 2018 when the sum of expected credit losses is lower at that date;

2020/05/27
Committee: ECON

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point c

Regulation (EU) No 575/2013
Article 473a – paragraph 5 – point c

(c) institutions shall replace the amount calculated in accordance with point (b) of paragraph 3 of this Article by the sum of the 12-month expected credit losses determined in accordance with paragraph 5.5.5 of the Annex relating to IFRS 9 and the amount of the loss allowance for lifetime expected credit losses determined in accordance with paragraph 5.5.3 of the Annex relating to IFRS 9 excluding the loss allowance for lifetime expected credit losses for financial assets that are credit- impaired, as defined in Appendix A to the Annex relating to IFRS 9, as of 1 January 2020 or on the date of initial application of IFRS 9, whichever is later, reduced by the sum of related expected loss amounts for the same exposures calculated in accordance with Article 158(5), (6) and (10). Institutions may replace the reference date mentioned above by 1 January 2018 when the sum of expected credit losses is lower at this date. Where the calculation results in a negative number, the institution shall set the value of the amount referred to in point (b) of paragraph 3 of this Article as equal to zero.;

2020/05/27
Committee: ECON

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA