Activities of Sharon BOWLES related to 2008/0191(COD)
Plenary speeches (1)
Credit requirements directives: Directives 2006/48/EC and 2006/49/EC - Community programme for financial services, financial reporting and auditing
Amendments (36)
Amendment 43 #
Proposal for a directive – amending act
Recital 14
Recital 14
(14) Since a loss arising from an exposure to a credit institutions or an investment firm can be as severe as a loss from any other exposure, such exposures should be treated and reported as any other exposures. For smaller institutions, a quantitative limit rather than a percentage should be applied.
Amendment 45 #
Proposal for a directive – amending act
Recital 14
Recital 14
(14) Since a loss arising from an exposure to a credit institutions or an investment firm can be as severe as a loss from any other exposure, such exposures should be treated and reported as any other exposures. In addition, very short-term exposures related to payment, clearing, settlement and custody services for clients are exempt to facilitate the smooth functioning of financial markets and of the related infrastructure. Those services cover, for example, the execution of cash clearing and settlement, corporate actions processing as well as securities lending and similar activities to facilitate settlement. The related exposures include, inter alia, balances on inter-bank accounts resulting from client payments, including credited or debited fees and interest, and other payments for client services, as well as collateral given or received.
Amendment 53 #
Proposal for a directive – amending act
Recital 15 a (new)
Recital 15 a (new)
(15a) Due diligence procedures have greater confidence building and cross- checking potential when they are based on an open principle. Therefore whilst respecting data protection and privacy, due diligence performed by or on behalf of originators, sponsors and investors should be open rather than confidential.
Amendment 64 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 2006/48/EC
Article 42b – paragraph 1
Article 42b – paragraph 1
1. In the exercise of their duties, competent authorities shall take into account the convergence in respect of supervisory tools and supervisory practices in the application of the laws, regulations and administrative requirements adopted pursuant to this Directive. For that purpose, Member States shall ensure that the competent authorities participate in the activities of the Committee of European Banking Supervisors and take into account its non- binding guidelines and recommendations, and that national mandates conferred on supervisors do not inhibit the performance by them of their duties as members of that Committee or under this Directive and that decisions made by competent authorities in the light of Article 40(3) or following recommendations from the Committee shall not give rise to liabilities under their national mandate.
Amendment 66 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 2006/48/EC
Article 42b – paragraph 1 a (new)
Article 42b – paragraph 1 a (new)
1a. Member States and competent authorities shall ensure that national regulators have sufficient personnel and resources to comply with their supervisory obligations under Article 122a and that employees involved in the oversight of credit institutions in accordance with Article 122a have appropriate knowledge and experience for the duties assigned.
Amendment 93 #
Proposal for a directive – amending act
Article 1 – point 16 – point a
Article 1 – point 16 – point a
Directive 2006/48/EC
Article 106 – paragraph 2 – point a
Article 106 – paragraph 2 – point a
(a) in the case of foreign exchange transactions, exposures incurred in the ordinary course of settlement during the 48 hourtwo working days following payment;
Amendment 97 #
Proposal for a directive – amending act
Article 1 – point 16 – point a
Article 1 – point 16 – point a
Directive 2006/48/EC
Article 106 – paragraph 2 – point c
Article 106 – paragraph 2 – point c
(c) in the case of the provision of money transmission or securities clearing and settlement services to clients, delayed receipts in funding and other exposures arising from client activityincluding the execution of payment instructions, clearing and settlement, in any currency and correspondent banking or financial instruments clearing, settlement and custody services, exposures including balances and overdrafts on current accounts such as delayed receipts in funding, which do not last longer than the following businessworking day.
Amendment 99 #
Proposal for a directive – amending act
Article 1 – point 16 - point a
Article 1 – point 16 - point a
Directive 2006/48/EC
Article 106 – paragraph 2 – point c
Article 106 – paragraph 2 – point c
(c) in the case of the provision of money transmission or securitie, financial instruments clearing and, settlement and custody services to clients, delayed receipts in funding and othesimilar exposures arising from client activity, which do not last longer than the following businessworking day.
Amendment 104 #
Proposal for a directive – amending act
Article 1 – point 19 – point a
Article 1 – point 19 – point a
Directive 2006/48/EC
Article 111 – paragraph 1 – subparagraph 2 a (new)
Article 111 – paragraph 1 – subparagraph 2 a (new)
Member States may provide that as a transitional measure until 31 December 2012 that where an exposure to an institution has a maturity of three to six months, the value of that exposure may not exceed 50 % of the credit institution's own funds; where an exposure to an institution has a maturity of up to three months, the value of that exposure may not exceed 75 % of the credit institution's own funds.
Amendment 112 #
Proposal for a directive – amending act
Article 1 – point 21 – point b – point ii a (new)
Article 1 – point 21 – point b – point ii a (new)
Directive 2006/48/EC
Article 113 – paragraph 3 – subparagraph 1– point h
Article 113 – paragraph 3 – subparagraph 1– point h
(iia) Point (h) is replaced by the following: (h) asset items constituting claims on central banks in the form of required minimum reserves held at these central banks, and asset items constituting claims on central governments in the form of statutory liquidity requirements held in government securities and which are denominated and funded in the national currencies of the borrowers;
Amendment 113 #
Proposal for a directive – amending act
Article 1 – point 21 – point b – point iv
Article 1 – point 21 – point b – point iv
Directive 2006/48/EC
Article 113 – paragraph 3 – point j
Article 113 – paragraph 3 – point j
(iv) Points (j) to (t) areis deleted.
Amendment 118 #
Proposal for a directive – amending act
Article 1 – point 21 – point b – point iv a (new)
Article 1 – point 21 – point b – point iv a (new)
Directive 2006/48/EC
Article 113 – paragraph 3 – point k to q
Article 113 – paragraph 3 – point k to q
(iva) Points (k) to (q) are deleted.
Amendment 121 #
Proposal for a directive – amending act
Article 1 – point 21 – point b – point iv b (new)
Article 1 – point 21 – point b – point iv b (new)
Directive 2006/48/EC
Article 113 – paragraph 3 – point r
Article 113 – paragraph 3 – point r
(ivb) Point (r) is replaced by the following: "(r) 50 % of the medium and medium low/risk off-balance-sheet documentary credits and of the medium/low risk-off balance sheet undrawn credit facilities referred to in Annex II;"
Amendment 124 #
Proposal for a directive – amending act
Article 1 – point 21 – point b – point iv c (new)
Article 1 – point 21 – point b – point iv c (new)
Directive 2006/48/EC
Article 113 – paragraph 3 – points s and t
Article 113 – paragraph 3 – points s and t
(ivc) Points (s) and (t) are deleted.
Amendment 128 #
Proposal for a directive – amending act
Article 1 – point 21 – point d
Article 1 – point 21 – point d
Directive 2006/48/EC
Article 113 – paragraph 4 – point a
Article 113 – paragraph 4 – point a
(a) up to 75 % of covered bonds falling within the terms of Annex VI, Part 1, points 68, 69 and 70;
Amendment 141 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1
Article 122a – paragraph 1
1. A credit institution shall only be exposed to the credit risk of an obligation or potential obligation or a pool, other than an originator, sponsor ofr obligations or potential obligations where it was not involved in directly negotiating, structuring and documenting the original agreement which created the obligations or potential obligations, if: (a) the persons or entities that directly negotiated, structured and documented the original agreement with the obligor or potential obligor; or alternatively and (b) the persons or entities that manage and purchase such obligatiriginal lender, shall be exposed to the credit risk of a securitisation position in its trading book or non-trading book only if the originator, spons or potential obligations directly or indirectly on behalf of the credit institution,or original lender haves issued an explicit commitment to the credit institution to mainretain, on an ongoing basis, a material net economic interest and in any event not less than 5 per cent% in positions having the same risk profile asa profile at least equivalent to the one that the credit institution is exposed to.
Amendment 150 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1 a (new)
Article 122a – paragraph 1 a (new)
Amendment 154 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1 b (new)
Article 122a – paragraph 1 b (new)
1b. Net economic interest shall be measured as at the closing date of the securitisation and shall be maintained on an ongoing basis. It shall not be subject to any credit risk mitigation or any short positions or any other credit hedge. The net economic interest shall be determined by the notional value for off-balance- sheet items.
Amendment 157 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1 c (new)
Article 122a – paragraph 1 c (new)
1c. For the purpose of paragraph 1a(a) and (d), liquidity facilities, interest rate swaps and foreign exchange swaps shall not be considered to be tranches.
Amendment 158 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1 d (new)
Article 122a – paragraph 1 d (new)
1d. There shall be no multiple application of the retention requirements.
Amendment 176 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 2 – subparagraph 2 a (new)
Article 122a – paragraph 2 – subparagraph 2 a (new)
Paragraph 1 shall not apply to securitisation positions resulting from a securitisation by an entity whose main business falls into the corporate exposure class where such entity owns the collateral supporting the underlying exposure, except where such entity has been set up to indirectly originate exposures for institutions.
Amendment 183 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – introductory part
Article 122a – paragraph 4 – introductory part
4. Before investing and on an ongoing basisas appropriate thereafter, credit institutions shall be able to demonstrate at all times to the competent authorities for each of their individualall their securitisation positions that they have a comprehensive and thorough understanding of and have implemented formal policies and procedures for analysing and recording, in writappropriate to their trading book and non-trading book and commensurate with the risk profile of their securitised positions, for reviewing and recording:
Amendment 190 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point b
Article 122a – paragraph 4 – point b
(b) the risk characteristics of the individualir securitisation positions;
Amendment 191 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point c
Article 122a – paragraph 4 – point c
(c) the risk characteristics of the exposures underlying their securitisation positions;
Amendment 193 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point d
Article 122a – paragraph 4 – point d
(d) the reputation and loss experience in earlier securitisations of the originators or sponsors in the relevant exposure class or classes underlying their securitizsation positions;
Amendment 198 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point e
Article 122a – paragraph 4 – point e
(e) the statements made by the originators andor sponsors, or their agents or advisors, about their due diligence undertaken by them on the obligors and, where applicable, on the collateral quality of the exposures underlying the securitization positionon the securitised exposures and, where applicable, on the quality of the collateral supporting the securitised exposures; due diligence by or on behalf of the originators or sponsors should be available under the principle of open due diligence;
Amendment 209 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 5 – save for last sentence
Article 122a – paragraph 5 – save for last sentence
5. Credit institutions shall establish formal proceduresBefore investing and as appropriate thereafter, credit institutions, other than originators or sponsors or original lenders, shall establish formal and proportionate procedures appropriate to their trading book and non-trading book and commensurate with the risk profile of their securitisation positions, to monitor on an ongoing basis and in a timely manner performance information on the exposures underlying their securitisation positions. Where relevant, this shall include, at a minimum: the exposure type, the length of time the exposures have been held by the originator including the percentage held by the originator for less than 2 years, the percentage of loans more than 30, 60 and 90 days past due, default rates, prepayment rates, loans in foreclosure, collateral type and occupancy, frequency distribution of credit scores or other measures of credit worthiness across underlying exposures, industry and geographical diversification, frequency distribution of loan to value ratios with band widths that facilitate adequate sensitivity analysis. Where the underlying exposures are themselves securitisation positions, the requirements to monitor and be able to access information shall apply tocredit institutions shall have information not only on the underlying securitisation tranches but also on the characteristics and performance of the exposures underlying these securitisation positions.
Amendment 212 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 5 – last sentence
Article 122a – paragraph 5 – last sentence
Where the requirements in paragraph 4 and in this paragraph are not met, credit institutions shall apply a risk weight of 1250% to these securitisation positions under Annex IX, part 4. in any material respect by reason of the negligence or omission of the credit institution, the competent authority shall impose a proportionate penalty of 150% of the risk weight (capped at 1250%) which would, but for this paragraph, apply to the relevant securitisation positions under Annex IX, part 4. The competent authority may allow a credit institution a period of 3 months to rectify a failure before imposing a penalty.
Amendment 218 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 7 – save for last sentence
Article 122a – paragraph 7 – save for last sentence
7. Sponsor and originator credit institutions shall disclose to investors the level of their commitment under paragraph 1 to mainretain a net economic interest in the securitisation. Sponsor and originator credit institutions shall ensure that prospective investors have readily available access to all materially relevant data on the credit quality and performance of the individual underlying exposures, cash flows and collateral supporting a securitizsation exposure as well as such information that is necessary to conduct comprehensivappropriate and well informed stress tests on the cash flows and collateral values supporting the underlying exposures. For this purpose, 'materially relevant data' shall be determined as at the closing date of the securitisation.
Amendment 221 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 7 – last sentence
Article 122a – paragraph 7 – last sentence
Where these requirements and those in paragraph 6 are not met, Article 95(1) shall not be applied by an originator credit institution which will not be allowed to exclude the securitised exposures from the calculation of its capital requiremeby an originator credit institution in any material respect through their own negligence or omission, the competent authority shall impose a proportionate penalty upon the credit institution in the form of a capital charge of 10% to 100% of that which would have applied had the exposures not been securitised. The competent authority may allow a credit institution a period of three months under this Directiveto rectify a failure before imposition of a penalty.
Amendment 225 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 8
Article 122a – paragraph 8
8. Paragraphs 41 to 7 shall apply to securitisations issued from the date that this Directive comes into effectafter 31 December 2010 and to existing securitisations after 31 December 2015 where new underlying exposures are added or substituted after that datthat materially increase the originally agreed risk profile or asset type.
Amendment 230 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 9 a (new)
Article 122a – paragraph 9 a (new)
9a. Credit institutions shall not issue covered bonds in excess of 50% of their total assets.
Amendment 231 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 9 a (new)
Article 122a – paragraph 9 a (new)
9a. By 31 December 2009, the Commission shall report to the European Parliament and the Council on the impact of Article 122a in the light of international market developments, securitisation markets and covered bond volumes. If the Commission's report referred to above concludes that any of the provisions of Article 122a is no longer appropriate in light of international market developments, it shall present to the European Parliament and the Council a proposal to amend it. At the same time, the Commission shall report on proposals from CEBS relating to the proportional application of Article 122a.
Amendment 264 #
Proposal for a directive – amending act
Article 1 – point 30
Article 1 – point 30
Directive 2006/48/EC
Article 131a – paragraph 1 – subparagraph 1
Article 131a – paragraph 1 – subparagraph 1
1. The consolidating supervisor shall establish colleges of supervisors to facilitate the exercise of the tasks referred to in Articles 129 and 130(1)Article 130(1) and ensure appropriate coordination and cooperation with relevant third country competent authorities.
Amendment 278 #
Proposal for a directive – amending act
Article 1 – point 35 a (new)
Article 1 – point 35 a (new)
Directive 2006/48/EC
Annex VI – part 2 – paragraph 7 – subparagraph 1a (new)
Annex VI – part 2 – paragraph 7 – subparagraph 1a (new)
(35a) In Annex VI, Part 2, point 7 the following subparagraph is added: "Competent authorities shall, furthermore, take the necessary measures to ensure that, with regard to credit assessments relating to structured finance instruments, the ECAI is committed to explain how the performance of pool assets affects its credit assessments."
Amendment 285 #
Proposal for a directive – amending act
Article 2 a (new)
Article 2 a (new)
Directive 2007/64/EC
Article 1 – paragraph 1 – point a
Article 1 – paragraph 1 – point a
Article 2a Amendment to Directive 2007/64/EC Article 1(1)(a) of Directive 2007/64/EC is replaced by the following: "(a) credit institutions within the meaning of Article 4(1)(a) of Directive 2006/48/EC, including branches within the meaning of Article 4(3) of that Directive located in the Community of credit institutions having their head offices inside or, in accordance with Article 38 of that Directive, outside the Community;"