[ParlTrack]

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

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

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 146 – introductory part

(x a) in point (146), the introductory part is replaced by the following: (146) ‘large institution’ means an institution that is not a social economy entity and meets any of the following conditions:

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

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

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 146 a (new)

(x b) the following point is inserted : “(146a) ‘social economy entity’ means an entity that meets all of the following conditions: a) the entity is not a G-SII b) the entity and its subsidiaries and affiliated undertakings are linked according to Article 22(7) of Directive 2013/34/EU and applicable national laws address subsidiaries to allocate profits mainly to common interests of members; c) subsidiaries and affiliated undertakings are small and non-complex entities according to point 145 of this Article or less significant institutions according to Art. 6(4) of Regulation (EU) 1024/2013; d) subsidiaries and affiliated undertakings are bound by national laws for a governance model informed by democratic principles.

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

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

Regulation (EU) 575/2013
Article 5 – point 10 a (new)

(10a) For the purpose of this regulation, ‘agricultural enterprise’ means a natural or legal person, or a group of natural or legal persons, regardless of the legal status granted to such group and its members who exercises an agricultural activity.

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point a – introductory part

(a) in paragraph 1, point (d) isand (k) are replaced by the following:

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point ba (new)

Regulation (EU) No 575/2013
Article 36 – paragraph 1 – point k – point vi (new)

(ba) in point (k) a new point is added: ‘(vi) CIU exposures in accordance with Article 132(2).

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

Regulation (EU) 876/2019 amending Regulation (EU) 575/2013
Article 47c – paragraph 6 – subparagraphs 2 a (new) and 2 b (new)

(11 a) in Article 47c(6) the following subparagraphs are added: By way of derogation from paragraph 2, when a non-performing exposure is purchased by a financial institution i) from another financial institution which has originated the credit, ii) at a price which is at least 50% lower than the total amount owed by the debtor iii) before the third year following its classification as non-performing, then the factors foreseen by paragraph 2shall re-apply from the beginning, as if the exposure would have been just classified as non-performing. By way of derogation from paragraph 3, when a non-performing exposure is purchased by a financial institution, i) from another financial institution, ii) at a price which is at least 50% lower than the total amount owed by the debtor, iii) before the seventh year following its classification of non performing, for non- performing exposures secured by other funded or unfunded credit protection, or before the nineth year following its classification as non performing, for non- performing exposure secured by immovable property, then the factors foreseen by paragraph 3 shall re-apply from the beginning, as if the exposure would have been just classified as non- performing.

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – introductory part

(a) the Common Equity Tier 1 capital of the subsidiary minus ~~the lower of the following~~:

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – parapraph 1 – point a – point i

(i) the amount of Common Equity Tier 1 capital of that subsidiary required to meet the following: — institution, the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459 , the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable; — where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries, insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable;deleted where the subsidiary is an

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i –indent 1

— where the subsidiary is an institution, the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459 , the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable;deleted

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) 575/2013
Article 84 – paragraph 1 – point a – point i – indent 2

— where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries, insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable;deleted

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Common Equity Tier 1 capital that relates to that subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive;; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements;

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – introductory part

(a) the Tier 1 capital of the subsidiary minus ~~the lower of the following~~:

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i

~~(i) the amount of Tier 1 capital of the subsidiary required to meet the following: — institution, the sum of the requirement laid down in Article 92(1), point (b), t~~deleted whe requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 Capital, as applicable; — investment firm, the sum of t the subsidiary is an whe requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital, as applicable; the subsidiary is an

2022/08/11
Committee: ECON

Antonio TAJANI, Fulvio MARTUSCIELLO, Herbert DORFMANN

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i – indent 1

— where the subsidiary is an institution, the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 Capital, as applicable;deleted

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i – indent 2

— where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital, as applicable;deleted

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Tier 1 capital that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements;

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 20 a (new)

Regulation (EU) No 575/2013
Article 87 – paragraph 1 – point a

(a)20 a) in Article 87 point (a) is replaced by the following: the own funds of the subsidiary minus ~~the lower of the following: (i)~~ the amount of own funds that relates tof the subsidiary that is required ~~to meet the following: —~~on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 92(1) ~~of this Regulation~~, the requirements referred to in Articles 458 and 459 ~~of this Regulation~~, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in point (6) of Article 128 of ~~that~~ Directive, and any additional local supervisory regulations in third countries, — where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in point (a) of Article 39(2) of Directive (EU) 2019/2034, and any additional local supervisory regulations in third countries; (ii) the amount of own funds that relates to 2013/36/EU, the requirements referred to in Article 500 and any additional local supervisory own funds requirement in third countries and the Common Equity Tier 1 capital of the subsidiary ~~that is~~ required on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 92(1) of this Regulation, the requirements referred to in Articles 458 and 459 of this Regulation, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in point (6) of Article 128 of that Directive, and any additional local supervisoryat local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirement ~~in third countrie~~s;

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a – subparagraph 5a (new)

By way of derogation from the first subparagraph, institutions which deduct an IRB shortfall amount from their Common Equity Tier 1 in accordance with Article 36 (1), point (d) shall apply the following formula: TREA= max {U-TREA; (x*S-TREA)– (SF*12,5)} where SF = the absolute value of the IRB shortfall deducted in accordance with Article 36(1), point (d)

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 40 – point b a (new)

Regulation (EU) No 575/2013
Article 122 – paragraph 2 a (new)

(b a) the following paragraph is added: 2a. By way of derogation from paragraph 2, exposures under the standardised approach due to not-real estate leases granted by an institution to corporate borrowers against the payment of periodic contractual payments shall be assigned a risk weight of 70%, provided that all the following conditions are met: a) the lessor performs a complete credit risk assessment process comprising lessees, subject of leases and their relative suppliers; b) the lessor retains the legal ownership of the leased asset throughout the life of the contract; c) the lessor has the right to carry out on- site inspections/access; d) the leased assets are instrumental to the exercise of the borrower’s economic activities.

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) 575/2013
Article 123 – paragraph 4 a (new)

4 a. By way of derogation from paragraph 3, exposures under the standardised approach due to not-real estate leases granted by an institution to retail borrowers against the payment of periodic contractual payments shall be assigned a risk weight of 55%, provided that all the following conditions are met: a) the lessor performs a complete credit risk assessment process comprising lessees, subject of leases and their relative suppliers; b) the lessor retains the legal ownership of the leased asset throughout the life of the contract; c) the lessor has the right to carry out on- site inspections/access; d) the leased assets are instrumental to the exercise of the borrower’s economic activities.

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) 575/2013
Article 124 – paragraph 2 – point a – point i

(i) the ~~immovable property securing the exposure is the obligor’s primary residence~~exposure is to an individual and secured by a residential property, either where the immovable property as a whole constitutes a single housing unit or where the immovable property securing the exposure is a housing unit that is a separated part within an immovable property;

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) 575/2013
Article 124 – paragraph 2 – point c – point ii a (new)

(ii a) exposures related to property leasing transactions concerning offices or other commercial premises under which the institution is the lessor and the lessee has an option to purchase shall be assigned a risk weight of 50% provided that the exposure of the institution is fully and completely secured by its ownership of the property and the commercial immovable property is instrumental to the lessee’s economic activities.

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) 575/2013
Article 126a – paragraph 2 – introductory part

2. ADC exposures to residential or commercial 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:

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 51 a (new)

Regulation (EU) 575/2013
Article 132 – paragraph 2 – subparagraph 2

(51 a) in Article 132(2), subparagraph 2 is replaced by the following: Subject to Article 132b (2), institutions that do not apply the look-through approach or the mandate-based approach shall assign a risk weight of 1 250 % (‘fall-back approach’) to their exposures in the form of units or shares in a CIU. As an alternative to applying a 1 250 % risk weight, institutions may deduct those amounts from Common Equity Tier 1 items in accordance with point (k) of Article 36(1).

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) 575/2013
Article 133 – paragraph 1 – point c – point iv – introductory part

(iv) the holder of the instrument has exercised the option to require that the obligation be settled in equity shares, unless one of the following conditions is met:

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) 575/2013
Article 133 – paragraph 3

3. Equity exposures, other than those referred to in paragraph 3a and 4 to 7, shall be assigned a risk weight of 250 %, unless those exposures are required to be deducted or risk-weighted in accordance with Part Two.

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 52

3a. Exposures to equity listed on regulated markets shall be assigned a risk weight of 100%. Private equity exposures in sufficiently diversified portfolios shall be assigned a risk weight of 190 % unless those exposures are required to be deducted.

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) 575/2013
Article 133 – paragraph 6

6. Equity exposures to central banks shall be assigned a risk weight of 100 %.

2022/08/11
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 89 – point c a (new)

Regulation (EU) No 575/2013
Article 178 – paragraph 6 a (new)

(c a) the following paragraph is inserted: 6a. EBA shall develop draft regulatory technical standards to specify the definition of diminished financial obligation in case of distressed restructuring for the purposes of paragraph 3(d). EBA shall submit those draft regulatory technical standards to the Commission by 31 December 2023. 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.

2022/08/18
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 98 a (new)

(98 a) in Article 197(5), point (b) is replaced by the following: (b) the CIUs are ~~limited to~~ investing in instruments that are eligible for recognition under paragraphs 1 and 4;

2022/08/18
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 98 a (new)

Regulation (EU) No 575/2013
Article 197 – paragraph 6 - subparagraph 1

(98 a) in Article 197(6), subparagraph 1 is replaced by the following: For the purposes of paragraph 5, where a CIU (‘the original CIU’) or any of its underlying CIUs are not limited to investing in instruments that are eligible under paragraphs 1 and 4~~, institutions~~: - where the institutions can apply the look-through method, they may use units or shares in that CIU as collateral up to the amount equal to the value of the underlying instruments, calculated following the existing provisions of the relevant European and national regulations, that are eligible for recognition under paragraphs 1 and 4; - where institutions can apply the mandate-based approach, they may use units or shares in that CIU as collateral to an amount equal to the value of the eligible assets held by that CIU under the assumption that that CIU or any of its underlying CIUs have invested in non- eligible assets to the maximum extent allowed under their respective mandates.

2022/08/18
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 98 c (new)

Regulation (EU) No 575/2013
Article 198 – paragraph 1

(98 c) in Article 198, paragraph 1 is replaced by the following: 1. In addition to the collateral established in Article 197, where an institution uses the Financial Collateral Comprehensive Method set out in Article 223, that institution may use the following items as eligible collateral: (a) equities or convertible bonds not included in a main index but traded on a recognised exchange; (b) units or shares in CIUs where both the following conditions are met: (i) the units or shares have a daily public price quote; (ii) the CIU is ~~limited to~~ investing in instruments that are eligible for recognition under Article 197(1) and (4) and the items mentioned in point (a) of this subparagraph. ~~In the case a CIU invests in units or shares of another CIU, conditions (a) and (b) of this paragraph equally apply to any such underlying CIU.~~ The use by a CIU of derivative instruments to hedge permitted investments shall not prevent units or shares in that undertaking from being eligible as collateral.

2022/08/18
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 98 d (new)

Regulation (EU) No 575/2013
Article 198 – paragraph 2 – subparagraph 1

(98 d) in Article 198(2), subparagraph 1 is replaced by the following: 2. Where the CIU or any underlying CIU are not limited to investing in instruments that are eligible for recognition under Article 197(1) and (4) and the items mentioned in point (a) of paragraph 1 of this Article~~, institutions~~: - where institutions can apply the look- through method, they may use units or shares in that CIU as collateral up to the amount equal to the value of the underlying instruments, calculated following the existing provisions of the relevant European and national regulations, that are eligible for recognition under paragraphs 1 and 4 and the items mentioned in point (a) of paragraph 1 of this Article;· - where institutions can apply the mandate-based approach, they may use units or shares in that CIU as collateral to an amount equal to the value of the eligible assets held by that CIU under the assumption that that CIU or any of its underlying CIUs have invested in non- eligible assets to the maximum extent allowed under their respective mandates.

2022/08/18
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 104 a (new)

Regulation (EU) 575/2013
Article 212 – paragraph 2 – point g

(~~g) the surrender value is declared by the company providing the life insurance and is non-reducible;~~104 a)in Article 212(2), point (g) is replaced by the following: (g) the current surrender value is declared by the company providing the life insurance. Where the surrender value is reducible, it has to be revaluated during the exposure life cycle.

2022/08/18
Committee: ECON

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO