Activities of Sharon BOWLES related to 2011/0202(COD)

Proposal for a regulation
Recital 15 a (new)

(15a) In assessing systemic relevance of institutions EBA should have regard to size, cross-border distribution and spill over effect, taking into account branch or subsidiary structure, interconnectedness via similarity of business model, or cross- guarantee schemes, or insurance clusters of independent entities with similar business models which may have systemic collective effects.

2012/03/07
Committee: ECON

Proposal for a regulation
Recital 16 a (new)

(16a) The report from the High Level Group on Financial Supervision in the European Union, chaired by Jacques de Larosière, stated that micro-prudential supervision cannot effectively safeguard financial stability without adequately taking account of macro-level developments, while macro-prudential oversight is not meaningful unless it can somehow impact on supervision at the micro level. Close cooperation between EBA and the ESRB is essential to give full effectiveness to the functioning of the ESRB and the follow-up to its warnings and recommendations. In particular, EBA should be able to transmit to the ESRB all relevant information gathered by competent authorities in accordance with the reporting obligations set out in this Regulation.

2012/03/07
Committee: ECON

Proposal for a regulation
Recital 24 a (new)

(24 a) Wherever Member States are operating derogations it shall always be justified by the business model of the institutions and resolution plans. Systemic institutions shall not normally be in receipt of derogations, other than those related to SME funding or trade finance given their importance to growth. EBA shall be notified of and monitor the application of derogations.

2012/03/07
Committee: ECON

Wolf KLINZ, Sharon BOWLES, Olle SCHMIDT

Proposal for a regulation
Recital 35

(35) While it is desirable to base the calculation of the exposure value on that provided for the purposes of own funds requirements, it is appropriate to adopt rules for the monitoring of large exposures without applying risk weightings or degrees of risk. Moreover, the credit risk mitigation techniques applied in the solvency regime were designed with the assumption of a well-diversified credit risk. In the case of large exposures dealing with single name concentration risk, including sovereign risks, credit risk is not well- diversified. The effects of those techniques should therefore be subject to prudential safeguards. In this context, it is necessary to provide for an effective recovery of credit protection for the purposes of large exposures.

2012/03/07
Committee: ECON

Proposal for a regulation
Recital 49 a (new)

(49a) Whilst recognising commercial confidentiality has a role in a competitive market it should not be put above financial stability or adequacy of information for investors.

2012/03/07
Committee: ECON

Proposal for a regulation
Recital 54

(54) For the purposes of strengthening market discipline and enhancing financial stability it is necessary to introduce more detailed requirements for disclosure of the form and nature of regulatory capital ~~and~~, prudential adjustments, repurchase agreements and secured funding made in order to ensure that investors and deposits are sufficiently well informed about the solvency of credit institutions and investment firms.

2012/03/07
Committee: ECON

Proposal for a regulation
Recital 54 a (new)

(54a) It is further necessary for supervisors to have knowledge of the level, at least in aggregate terms, of institutions' repurchase agreements, securities lending and all forms of encumbrance or claw back arrangements. Such information should be reported to a trade repository or a Central Securities Depository to enable access, inter alia, by EBA, ESMA, relevant competent authorities, the ESRB and relevant central banks and the ESCB. In liquidation proceedings unregistered claw back arrangements should not have legal effect.

2012/03/07
Committee: ECON

Proposal for a regulation
Recital 55

(55) The new definition of capital and regulatory capital requirements should be introduced in a manner that takes account of the fact that there are different national starting points and circumstances, with initial variance around the new standards reducing over the transition period. In order to ensure the appropriate continuity in the level of own funds, existing public sector capital injections will be grandfathered for the extent of the transitional period. In addition, it cannot be excluded that similar injections of public sector capital are necessary in the future to preserve financial stability. In such a situation, competent authorities should have as many options available as possible, including capital instruments which may not fulfil all criteria of CET1 instruments issued in normal times. While full capacity to absorb losses would seem particularly relevant, it may also be appropriate to equip such instruments with, for example, fixed, preferential or enhanced distributions to compensate for the risk of crisis intervention. Permanence on the other hand may be a less relevant criterion. Considering the particular requirements of and circumstances during a crisis situation, it should be possible for EBA, upon reasoned request and in cooperation with the relevant competent authorities to consider such instruments equivalent to core Tier 1 instruments for the purpose of this Regulation.

2012/03/07
Committee: ECON

Proposal for a regulation
Recital 59 a (new)

(59a) Some third countries require both formally and informally, branches or subsidiaries of foreign banks to have deposits with their central banks in the local currency. For a level playing field in competitiveness for European banks these deposits should all be exempted from the large exposure regime.

2012/03/07
Committee: ECON

Proposal for a regulation
Recital 67

(67) In December 2010, the BCBS published guidelines defining the methodology for calculating the leverage ratio. These rules foresee an observation period that will run from 1 January 2013 until 1 January 2017 during which the leverage ratio, its components and its behaviour relative to the risk-based requirement will be monitored. Based on the results of the observation period the BCBS intends to make any final adjustments to the definition and calibration of the leverage ratio in the first half of 2017, with a view to migrating to a binding requirement on 1 January 2018 based on appropriate review and calibration. The BCBS guidelines also foresee the disclosure of the leverage ratio and its components starting from 1 January 2015. In order to prepare for migration from 1st January 2015 there should be progressive moves towards disclosure of the leverage ratio, including its components, and any specificities or measures under review.

2012/03/07
Committee: ECON

Proposal for a regulation
Recital 68

(68) A leverage ratio is a new regulatory and supervisory tool for the Union. In line with international agreements, it should be introduced first as an additional feature that can be applied on individual institutions at the discretion of supervisory authorities. Reporting obligations for institutions would allow appropriate review and calibration, with a view to migrating to a binding measure in 2018, which could be by way of recast.

2012/03/07
Committee: ECON

Wolf KLINZ, Sharon BOWLES

Proposal for a regulation
Recital 69

(69) When reviewing the impact of the leverage ratio on different business models, particular attention should be paid to business models which are considered to entail low risk, such as mortgage lending and specialised lending with regional governments, local authorities or public sector entities. It may be appropriate to have a range of leverage ratios with only large international banks aligned with the strictest criteria.

2012/03/07
Committee: ECON

Proposal for a regulation
Recital 75

(75) The stock of liquid assets should be available at any time to meet the liquidity outflows. The level of liquidity needs in a short term liquidity stress should be determined in a standardised manner so as to ensure a uniform soundness standard and a level playing field. It should be ensured that such a standardised determination has no unintended consequences for financial markets, credit extension and economic growth, also taking into account different business and investment models and funding environments of credit institutions and investment firms across the Union. To this end, the liquidity coverage requirement should be subject to an observation period. Based on the observations and supported by EBA, the Commission should confirm or adjust the liquidity coverage requirement by means of a delegated act.

2012/03/07
Committee: ECON

Sharon BOWLES, Wolf KLINZ

Proposal for a regulation
Recital 75 a (new)

(75a) EBA in cooperation with the ESRB should issue guidance on the principles for use of liquid stock in a stress situation.

2012/03/07
Committee: ECON

Proposal for a regulation
Recital 76

(76) The failure of credit institutions to fund their assets with the appropriate amount of stable funding has caused damage to the real economy throughout the crisis. Ensuring banks have more sustainable stable sources of funding is a key step in ensuring financial stability. Apart from short-term liquidity needs, credit institutions and investment firms should therefore also adopt funding structures that are stable at a longer term horizon. In December 2010, the BCBS agreed that the NSFR will move to a minimum standard by 1 January 2018 and that the BCBS will put in place rigorous reporting processes to monitor the ratio during a transition period and will continue to review the implications of these standards for financial markets, credit extension and economic growth, addressing unintended consequences as necessary. The BCBS thus agreed that the NSFR will be subject to an observation period and will include a review clause. In this context, EBA should, based on reporting required by this Regulation, evaluate how a stable funding requirement should be designed. Based on this evaluation, the Commission should report to Council and European Parliament together with ~~any~~ appropriate legislative proposals ~~in order~~ to introduce such a requirement by 2018. Taking into account the ongoing work of the BCBS on the NSFR, by 2014 the EBA should produce a report on the stock of less stable funding and make proposals as to whether there should be incentives, including public disclosure, for its progressive reduction, prior to later introduction of an NSFR.

2012/03/07
Committee: ECON

Proposal for a regulation
Recital 87

(87) The Commission should ~~also~~ be empowered to adopt, by means of ~~an urgency procedure, a temporary increase in the level of own funds,~~delegated acts, and in response to recommendations by the ESRB, modifications to risk weightings or ~~any~~other prudential ~~requirements that is necessary~~measures in order to respond to market developments. Such provisions should be applicable for a period not exceeding 6 months, unless the European Parliament or the Council has objected to the delegated act within a period of six weeks. The Commission should state the reasons for the use of the urgency procedure creating macro- prudential risks. The EBA, working in conjunction with the ESRB, should also issue guidelines for macro-prudential intervention by supervisors at individual Member State level, review all such measures and when appropriate advise the Commission if the measures taken are unjustified. The Commission may demand that unjustified measures be revoked.

2012/03/07
Committee: ECON

Proposal for a regulation
Article 2 – paragraph 1 a (new)

Nothing in this Regulation shall prevent the ESRB from exercising its powers under Articles 16 and 17 of Regulation (EU) No 1092/2010 of the European Parliament and of the Council of 24 November 2010 on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board1 or a Member State from complying. ___________ OJ L 331, 15.12.2010, p. 1.

2012/03/07
Committee: ECON

Proposal for a regulation
Article 2 – paragraph 1 b (new)

For the purposes of resolving disputes between competent authorities Article 19 of (EU) No 1093/2010 shall apply throughout this Regulation.

2012/03/07
Committee: ECON

Proposal for a regulation
Article 2 – paragraph 1 c (new)

Where this Regulation provides for competent authorities to exercise discretions, waivers or derogations, they must take into account spill over effects and any applicable international standards when considering the application of such provisions to systemic institutions.

2012/03/07
Committee: ECON

Proposal for a regulation
Article 4 – paragraph 1 – point 6 – point c

(c) firms which are subject to and comply with prudential rules considered by the competent authorities ~~as at least as stringent~~to have an equivalent outcome as those laid down by this Regulation or by Directive ~~[inserted by OP~~2012/.../EU of the European Parliament and of the Council of ... [on the access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms];

2012/03/07
Committee: ECON

Proposal for a regulation
Article 4 – paragraph 1 – point 55 a (new)

(55a) 'trade finance' means financing connected to the exchange of goods and services through financial products of fixed short-term maturity (generally less than 1 year) without automatic rollover, such finance is generally uncommitted and requires satisfactory supporting transactional documentation for each drawdown request enabling refusal of the finance in the event of any doubt about credit-worthiness or the supporting transactional documentation; repayment of trade finance exposures is usually independent of the borrower; the funds instead coming from cash received from importers or resulting from proceeds of the sales of the underlying goods.

2012/03/07
Committee: ECON

Proposal for a regulation
Article 4 – paragraph 1 – point 56 a (new)

(56a) 'simple repurchase agreement' means a repurchase transaction of a single or similar assets as opposed to a basket of assets.

2012/03/07
Committee: ECON

Proposal for a regulation
Article 4 – paragraph 1 – point 86 a (new)

(86a) 'multilateral development bank' means an organisation that provides financial support and professional advice for economic or social development activities in recipient countries, with membership comprised, exclusively or mainly, of sovereign states.

2012/03/07
Committee: ECON

Proposal for a regulation
Article 7 – paragraph 2 – subparagraph 3

Competent authorities may also apply paragraph 1 also to institutions which that are members of the same institutional protection scheme referred to in 108(7)(b), provided that they meet all the conditions laid down in Article 108(7). Competent authorities shall in that case determine one of the institutions subject to the waiver to meet Article 401and if also waived in Article 403 on the basis of the consolidated situation of all institutions of the single liquidity sub-group.

2012/03/07
Committee: ECON

Proposal for a regulation
Article 9 – paragraph 1 – introductory part

CMember States or their competent authorities may waive the application of the requirements set out in Parts Two to Four and Six to Eight ~~to one or more credit institutions situated in the same Member State and which are permanently affiliated to a central body which supervises~~in accordance with Article 21 of the Directive 2012/.../EU of the European Parliament and of the Council of ... [on access to them a~~nd which is established in the same Member State, if national law provides all of the following:~~ctivity of credit institutions and prudential supervision of credit institutions and investment firms].

2012/03/07
Committee: ECON

Proposal for a regulation
Article 9 – paragraph 1 – point a

~~(a) the commitments of the central body and affiliated institutions are joint and several liabilities or the commitments of its affiliated institutions are entirely guaranteed by the central body;~~deleted

2012/03/07
Committee: ECON

Proposal for a regulation
Article 9 – paragraph 1 – point b

~~(b) the solvency and liquidity of the central body and of all the affiliated institutions are monitored as a whole on the basis of consolidated accounts of these institutions;~~deleted

2012/03/07
Committee: ECON

Proposal for a regulation
Article 9 – paragraph 1 – point c

~~(c) the management of the central body is empowered to issue instructions to the management of the affiliated institutions.~~deleted

2012/03/07
Committee: ECON

Proposal for a regulation
Article 10 – paragraph 4

4. Where Article 9 is applied, the central body referred to in that Article shall comply with the requirements of Parts Two to Four and Seven on the basis of the consolidated situation of the central body. Article 16 shall apply to the central body and the affiliated institutions shall be treated as the subsidiaries of the central body.deleted

2012/03/07
Committee: ECON

Proposal for a regulation
Article 22 – paragraph 1 – point 30 a (new)

(30 a) 'primary credit institution' means, for the purpose of Article 81 and Article 83, the credit institution in a consolidated group that is: (a) an immediate subsidiary of the parent holding company, (b) where the common equity tier 1 is 100% owned by the parent financial holding company, (c) the credit institution and parent holding company are both incorporated in the same Member State, and (d) the credit institution constitutes at least 50% of the consolidated balance sheet or consolidated capital requirements

2012/03/07
Committee: ECON

Proposal for a regulation
Article 24 – paragraph 2 – subparagraph 1 – introductory part

For the purposes of point (c) of paragraph 1, institutions may include interim or year- end profits in Common Equity Tier 1 capital before the institution has taken a formal decision confirming the final profit or loss of the institution for the year, only w~~ith the prior consent of the competent authority. The competent authority shall consent where~~here the competent authority has been informed and the following condition~~s are~~ is met:

2012/03/07
Committee: ECON

Proposal for a regulation
Article 24 – paragraph 2 – subparagraph 1 – point b

~~(b) the institution has demonstrated to the satisfaction of the competent authority that any foreseeable charge or dividend has been deducted from the amount of those profits.~~deleted

2012/03/07
Committee: ECON

Proposal for a regulation
Article 24 – paragraph 4

4. EBA shall evaluate and then establish, maintain and publish a list of the forms of capital ~~instrument~~ in each Member State that ~~qualify as Common Equity Tier 1 instruments~~meet the requirements of this Regulation to qualify as Common Equity Tier 1 instruments. Only instruments included on the EBA list will be eligible as Common Equity Tier 1. EBA shall establish and publish this list by 1 January 2013.

2012/03/07
Committee: ECON

Proposal for a regulation
Article 25 – paragraph 2 – subparagraph 1 – point a

(a) the conditions according to which competent authorities may determine that a type of undertaking recognised under applicable national law or as defined by the statute of the institution qualifies as a mutual, cooperative society or similar institution for the purposes of this Part;

2012/03/07
Committee: ECON

Proposal for a regulation
Article 26 – paragraph 1 – point f – point i

(i) the liquidation of the institution or administration by a resolution authority;

2012/03/07
Committee: ECON

Proposal for a regulation
Article 26 – paragraph 1 – point g

(g) the provisions governing the instruments do not indicate expressly or implicitly that the principal amount of the instruments would or might be reduced or repaid other than in the liquidation of the institution or administration by a resolution authority, and the institution does not otherwise provide such an indication prior to or at issuance of the instruments, except in the case of instruments referred to in Article 25 where the refusal by the institution to redeem such instruments is prohibited under applicable national law;

2012/03/07
Committee: ECON

Proposal for a regulation
Article 26 – paragraph 1 – point h – point iii

(iii) the conditions governing the instruments do not include a cap or other restriction on the maximum level of distributions, except in the case of the instruments referred to in Article 25. Multiples of dividends which result in a disproportionate drag on capital shall not be allowed;

2012/03/07
Committee: ECON

Proposal for a regulation
Article 26 – paragraph 3 – subparagraph 1 – point b a (new)

(ba) Whether and when multiple distributions would constitute a disproportionate drag on Common Equity Tier 1 capital.

2012/03/07
Committee: ECON

Proposal for a regulation
Article 26 – paragraph 3 – subparagraph 1 – point b b (new)

(bb) the meaning of preferential distributions;

2012/03/07
Committee: ECON

Proposal for a regulation
Article 26 – paragraph 3 – subparagraph 1 – point b c (new)

(bc) the definition and implications of 'absorbing the first and proportionately greatest share of losses as they occur';

2012/03/07
Committee: ECON

Proposal for a regulation
Article 26 – paragraph 3 – subparagraph 1 – point b d (new)

(bd) the nature of a cap or other restriction on the maximum level of distributable items.

2012/03/07
Committee: ECON

Proposal for a regulation
Article 28 a (new)

Article 28a Capital instruments used by public authorities in crisis situations In crisis situations and if deemed necessary for the stability of financial markets Member States may decide to inject capital into individual or a group of credit institutions. Under the particular economic and political conditions of a crisis situation, it may be appropriate for the capital instruments used for this kind of operation only to fulfil most or substantially all of the criteria set out in Articles 26 and 27, including at least Article 26, points (a) to (e) and that the instruments are able to absorb losses in a suitable way. This shall apply where the instruments are issued between 20 July 2011 and 31 July 2016 and the capital injection complies with the state aid rules. Upon reasoned request by and in cooperation with the relevant competent authority, EBA shall consider these capital instruments equivalent to Common Equity Tier 1 instruments for the purpose of this Regulation.

2012/03/07
Committee: ECON

Proposal for a regulation
Article 46 – paragraph 1 – subparagraph 2

An institution may apply method 1 (accounting consolidation) only ifwhen it is more prudent and it has received the prior consent of the competent authority. The competent authority may grant such consent only if it is satisfied that the level of integrated management and internal control regarding the entities that would be included in the scope of consolidation under method 1 is adequate and can be fully justified by the institution's crisis resolution plan referred to in Article 8a of Directive 2012/.../EU of the European Parliament and of the Council of ... [on the access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms] .

2012/03/07
Committee: ECON

Proposal for a regulation
Article 46 – paragraph 2

2. For the purposes of calculating own funds on a stand-alone or subconsolidated basis, institutions subject to supervision on a consolidated basis in accordance with Chapter 2 of Title II of Part One shall not deduct holdings referred to in points (h) and (i) of Article 33(1) in relevant entities included in the scope of consolidated supervision.

2012/03/07
Committee: ECON

Proposal for a regulation
Article 46 – paragraph 2

2. For the purposes of calculating own funds on a stand-alone basis, institutions subject to supervision on a consolidated basis in accordance with Chapter 2 of Title II of Part One shall not deduct holdings referred to in points (h) and (i) of Article 33(1) in relevant entities included in the scope of consolidated supervision. Institutions should apply a risk weighting of up to 250% to these holdings when calculating their total risk exposure amounts for credit risk used in the calculation of their capital ratios.

2012/03/07
Committee: ECON

Proposal for a regulation
Article 46 – paragraph 3 – introductory part

3. Competent authorities may, for the purposes of calculating own funds on a stand-alone or sub-consolidated basis, permit institutions not to deduct a holding ~~of an item~~s referred to in points (h) and (i) of Article 33(1) in the following cases:

2012/03/07
Committee: ECON

Proposal for a regulation
Article 50 – paragraph 1 – point b

(b) a requirement for the payment of distributions on Common Equity Tier 1, Additional Tier 1 or Tier 2 instruments to be cancelled in the event that distributions are not made on those Additional Tier 1 instruments; if that requirement would: (i) attempt to stop payment on another instrument where the payments on this other instrument were not also fully discretionary; (ii) prevent distributions to shareholders for a period that extends beyond the point in time that dividends/coupons on the Additional Tier 1 instrument are resumed; (iii) impede the normal operation of the bank or any restructuring activity (including acquisitions/disposals). A requirement may act to prohibit actions that are equivalent to the payment of a dividend, such as the bank undertaking discretionary share buybacks.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 51 – paragraph 1 – introductory part

For the purposes of point (n) of Article 49(1), the following provisions shall apply to Additional Tier 1 instruments that are classed as liabilities for accounting purposes:

2012/03/08
Committee: ECON

Proposal for a regulation
Article 76 – paragraph 1 – point c a (new)

(ca) Competent authorities may include subsidiaries that do not comply with points (i) and (ii) in certain, well justified, cases. EBA shall develop draft regulatory technical standards to specify the concept of well justified cases which may include long-term investment undertakings in strategic infrastructure and service sectors.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 79 – paragraph 1 – point a – point i

(i) the amount of Common Equity Tier 1 capital of that subsidiary required to meet the sum of the requirement laid down in point (a) of Article 87(1) ~~and~~, the combined buffer referred to in Article 122(2) of Directive [inserted by OP]; and specific own funds requirements referred to in Article 100 of Directive [inserted by OP] insofar as those requirements are to be met by Common Equity Tier 1 capital where the following conditions are met: (1) The requirements referred to in Article 100 of Directive [inserted by OP] for each subsidiary are fully included within the requirements of the consolidated group; and (2) The institution has obtained the prior consent of the relevant home and host competent authorities to include the requirements referred to in Article 100 of Directive [inserted by OP] and can be fully justified by its crisis resolution plan referred to in Article 8a of Directive [inserted by OP].

2012/03/08
Committee: ECON

Proposal for a regulation
Article 79 – 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 point (a) of Article 87(1) ~~and~~, the combined buffer referred to in Article 122(2) of Directive [inserted by OP]; and specific own funds requirements referred to in Article 100 of Directive [inserted by OP] insofar as those requirements are to be met by Common Equity Tier 1 capital where the following conditions are met: (1) The requirements referred to in Article 100 of Directive [inserted by OP] for each subsidiary are fully included within the requirements of the consolidated group; and (2) The institution has obtained the prior consent of the relevant home and host competent authorities to include the requirements referred to in Article 100 of Directive [inserted by OP] and can be fully justified by its crisis resolution plan referred to in Article 8a of Directive [inserted by OP].

2012/03/08
Committee: ECON

Proposal for a regulation
Article 80 – paragraph 1 – point a – point i

(i) the amount of Tier 1 capital of the subsidiary required to meet the sum of the requirement laid down in point (b) of Article 87(1) ~~and~~, the combined buffer referred to in Article 122(2)of Directive [inserted by OP]; and specific own funds requirements referred to in Article 100 of Directive [inserted by OP] insofar as those requirements are to be met by Common Equity Tier 1 capital where the following conditions are met: (1) The requirements referred to in Article 100 of Directive [inserted by OP] for each subsidiary are fully included within the requirements of the consolidated group; and (2) The institution has obtained the prior consent of the relevant home and host competent authorities to include the requirements referred to in Article 100 of Directive [inserted by OP] and can be fully justified by its crisis resolution plan referred to in Article 8a of Directive [inserted by OP].

2012/03/08
Committee: ECON

Proposal for a regulation
Article 80 – 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 point (b) of Article 87(1) ~~and~~, the combined buffer referred to in Article 122(2)of Directive [inserted by OP]; and specific own funds requirements referred to in Article 100 of Directive [inserted by OP] insofar as those requirements are to be met by Common Equity Tier 1 capital where the following conditions are met: (1) The requirements referred to in Article 100 of Directive [inserted by OP] for each subsidiary are fully included within the requirements of the consolidated group; and (2) The institution has obtained the prior consent of the relevant home and host competent authorities to include the requirements referred to in Article 100 of Directive [inserted by OP] and can be fully justified by its crisis resolution plan referred to in Article 8a of Directive [inserted by OP].

2012/03/08
Committee: ECON

Proposal for a regulation
Article 81 – paragraph 1

Institutions shall determine the amount of qualifying Tier 1 capital of a subsidiary that is included in consolidated Additional Tier 1 capital. The minority interest in a primary credit institution in a Member State should be recognised in full, provided the excess funding, above regulatory requirements, is fully transferable throughout the group. The amount of the remaining minority interests that shall be included in consolidated Additional Tier 1 shall be calculated by subtracting from the qualifying Tier 1 capital of that undertaking included in consolidated Tier 1 capital the minority interests of that undertaking that are included in consolidated Common Equity Tier 1 capital.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 82 – paragraph 1 – point a – point i

(i) the amount of own funds of the subsidiary required to meet the sum of the requirement laid down in point (c) of Article 87(1) ~~and~~, the combined buffer referred to in Article 122(2) of Directive [inserted by OP]; and specific own funds requirements referred to in Article 100 of Directive [inserted by OP] insofar as those requirements are to be met by Common Equity Tier 1 capital where the following conditions are met: (1) The requirements referred to in Article 100 of Directive [inserted by OP] for each subsidiary are fully included within the requirements of the consolidated group; and (2) The institution has obtained the prior consent of the relevant home and host competent authorities to include the requirements referred to in Article 100 of Directive [inserted by OP] and can be fully justified by its crisis resolution plan referred to in Article 8a of Directive [inserted by OP].

2012/03/08
Committee: ECON

Proposal for a regulation
Article 82 – paragraph 1 – point a – point ii

(ii) the amount of own funds that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 87(1) ~~and~~, the combined buffer referred to in Article 122(2)of Directive [inserted by OP]; and specific own funds requirements referred to in Article 100 of Directive [inserted by OP] insofar as those requirements are to be met by Common Equity Tier 1 capital where the following conditions are met: (1) The requirements referred to in Article 100 of Directive [inserted by OP] for each subsidiary are fully included within the requirements of the consolidated group; and (2) The institution has obtained the prior consent of the relevant home and host competent authorities to include the requirements referred to in Article 100 of Directive [inserted by OP] and can be fully justified by its crisis resolution plan referred to in Article 8a of Directive [inserted by OP].

2012/03/08
Committee: ECON

Proposal for a regulation
Article 83 – paragraph 1

Institutions shall determine the amount of qualifying own funds of a subsidiary that is included in consolidated Tier 2 capital. The minority interest in a primary credit institution in a Member State should be recognised in full, provided the excess funding, above regulatory requirements, is fully transferable throughout the group. The amount of the remaining consolidated Tier 2 capital shall be determined by subtracting from the qualifying own funds of that undertaking that are included in consolidated own funds the qualifying Tier 1 capital of that undertaking that is included in consolidated Tier 1 capital.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 83 a (new)

Article 83 a Monitoring of consolidated capital arrangements The consolidated capital arrangements under articles 80 to 83 can lead to conflict between host regulators encouraging issuance of capital via local subsidiaries and home regulators restricting the amount of capital credit given at the group level. These conflicting interests should be balanced. EBA shall monitor the arrangements and impact on European banks and issue regulatory technical standards for the purpose of a harmonised approach in the EU.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 87 – paragraph 4 a (new)

4a. Where a liability or a capital charge is applied more than once due to the interacting capital requirements the competent authority may disapply the relevant part of this Regulation. The competent authorities shall notify the EBA as soon as is practicable where this approach is applied. The EBA shall monitor this practice and where necessary on its own initiative issue guidelines to ensure consistency at Union level.

2012/03/08
Committee: ECON

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

(v a) an active anti fraud strategy.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 108 – paragraph 7 – subparagraph 1 – introductory part

With the exception of exposures giving rise to liabilities in the form of Common Equity Tier 1, Additional Tier 1 and Tier 2 items, institutions may, subject to the permission of the competent authorities, not apply all the requirements of paragraph 1 of this Article to exposures to counterparties with which the institution has entered into an institutional protection scheme that is a contractual or statutory liability arrangement which protects those institutions and in particular ensures their liquidity and solvency to avoid bankruptcy in case it becomes necessary. Competent authorities are empowered to authorize such an alternative method if the following conditions are fulfilled:

2012/03/08
Committee: ECON

Proposal for a regulation
Article 108 – paragraph 7 – subparagraph 1 – point c a (new)

(ca) The EBA is notified of the institutional protection scheme and its members and legal arrangements for the availability of funds. EBA shall indicate if it considers that there is an exposure or liability arising from the protection scheme that has not been covered.

2012/03/08
Committee: ECON

Sharon BOWLES, Carl HAGLUND, Ramon TREMOSA i BALCELLS, Olle SCHMIDT

Proposal for a regulation
Article 109 – paragraph 1

1. Exposures to central governments and central banks shall be assigned a 100 % risk weight, unless the treatments set out in paragraphs 2 to 5 apply. By 2014 the EBA shall report on introducing a system of risk weights for sovereign debt which assigns minimum risk weights no less than the Yield to Maturity.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 109 – paragraph 4 a (new)

4 a. Institutions shall not hold disproportionate amounts of sovereign debt of any specific country, having due regard to all circumstances. The EBA shall monitor and set guidelines on appropriate levels of exposure.

2012/03/08
Committee: ECON

Ramon TREMOSA i BALCELLS, Sharon BOWLES, Pablo ZALBA BIDEGAIN

Proposal for a regulation
Article 110 – paragraph 2 – subparagraph 2 a (new)

EBA shall as a result of developing these implementing technical standards maintain a publicly available database of all such local and regional governments within the EU identified by implementing technical standard or the relevant competent authorities as being treated as exposures to their central governments.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 118 – paragraph 1 – introductory part

1. Exposures that comply with the following criteria shall be assigned a risk weight of 75 %:

2012/03/08
Committee: ECON

Ramon TREMOSA i BALCELLS, Sharon BOWLES, Pablo ZALBA BIDEGAIN

Proposal for a regulation
Article 118 – paragraph 1 – point a

(a) the exposure shall be either to an natural person or persons~~, or to a small or medium sized enterprise;~~

2012/03/08
Committee: ECON

Ramon TREMOSA i BALCELLS, Sharon BOWLES, Pablo ZALBA BIDEGAIN

Proposal for a regulation
Article 118 – paragraph 1 – point c

(c) the total amount owed to the institution and parent undertakings and its subsidiaries, including any exposure in default, by the obligor client or group of connected clients, but excluding claims or contingent claims secured on residential property collateral, shall not, to the knowledge of the institution, exceed EUR 1 million. The institution shall take reasonable steps to acquire this knowledge.deleted

2012/03/08
Committee: ECON

Ramon TREMOSA i BALCELLS, Sharon BOWLES, Pablo ZALBA BIDEGAIN

Proposal for a regulation
Article 118 – paragraph 1 a (new)

1 a. Exposures that comply with the following criteria shall be assigned a risk weight of 75 % according to Table 1: (a) the exposure shall be either to an natural person or persons, or to a small or medium sized enterprise; (b) the exposure shall be one of a significant number of exposures with similar characteristics such that the risks associated with such lending are substantially reduced; (c) the total amount owed to the institution and parent undertakings and its subsidiaries, including any exposure in default, by the obligor client or group of connected clients, but excluding claims or contingent claims secured on residential property collateral, shall not, to the knowledge of the institution, exceed EUR 5 million. The institution shall take reasonable steps to acquire this knowledge. Table 1 Total risk incurred with the company Risk weight Equal or less than EUR 1 million 50% Equal or less than EUR 3 million 60% Equal or less than EUR 5 million 75% For the purpose of the paragraph 2 (a) a small or medium sized enterprise shall be an enterprise that fulfils the criteria laid down in the Recommendation 2003/361/EC adopted by the European Commission on 6 May 2003 concerning the definition of micro, small and medium-sized enterprise.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 123 – paragraph 2 – point a

(a) investments in venture capital firms unless covered by an SME exemption or alternative risk weight;

2012/03/08
Committee: ECON

Proposal for a regulation
Article 127 – paragraph 3 – subparagraph 1

For the purposes of point (a), the Commission may adopt, by way of implementing acts, and subject to the examination procedure referred to in Article 447(2), a decision as to whether a third country applies supervisory and regulatory arrangements that ~~least~~have an equivalent toutcome as those applied in the European Union. In the absence of such a decision, until 1 January 2014, institutions may continue to apply the treatment set out in this paragraph to third country where the relevant competent authorities had approved the third country as eligible for this treatment before 1 January 2013.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 137 – paragraph 1 – point 4 – point a – introductory part

(a) the following entities, including third country entities, that carry out similar activities, that are subject to prudential supervision pursuant to EU legislation or to legislation of a third country which applies prudential supervisory and regulatory requirements ~~at least~~having an equivalent outcome to those applied in the Union:

2012/03/08
Committee: ECON

Proposal for a regulation
Article 142 – paragraph 5 – subparagraph 1 – point a – point ii

(ii) to a small or medium sized enterprise, provided in the latter case that the total amount owed to the institution and parent undertakings and its subsidiaries, including any past due exposure, by the obligor client or group of connected clients, but excluding claims or contingent claims secured on residential property collateral, shall not, to the knowledge of the institution, which shall have taken reasonable steps to confirm the situation, exceed EUR 15 million;

2012/03/08
Committee: ECON

Proposal for a regulation
Article 142 – paragraph 5 – subparagraph 1 – point a – point ii

(ii) to a small or medium sized enterprise, provided in the latter case that the total amount owed to the institution and parent undertakings and its subsidiaries, including any past due exposure, by the obligor client or group of connected clients, but excluding claims or contingent claims secured on residential property collateral, shall not, to the knowledge of the institution, which shall have taken reasonable steps to confirm the situation, exceed EUR 15 million;

2012/03/08
Committee: ECON

Proposal for a regulation
Article 142 – paragraph 5 – subparagraph 2 a (new)

For the purpose of the paragraph (a) (ii) a small or medium sized enterprise shall be an enterprise that fulfils the criteria laid down in the Recommendation 2003/361/EC adopted by the European Commission on 6 May 2003 concerning the definition of micro, small and medium-sized enterprise.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 146 a (new)

Article 146 a Setting a floor for risk weights at portfolio or exposure level Member States may, on a permanent or temporary basis, set a limit to the risk weight so that the risk weight of a specific portfolio shall not be less than a number specified by the Member State. The risk weight limit may be set both on portfolio level, so that the exposure-weighted risk weight of the specific portfolio shall not be less than a specified number, or at exposure level, so that the risk weight of each individual exposure within a specific portfolio may not be less than a specified number. These limits may not be set higher than the corresponding risk weight for the specific exposures concerned in accordance with the standardized approach in Articles 106 to 136.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 146 b (new)

Article 146 b Member States may adjust the multiplication factor of 1,06 of the risk weight formulas in Article 148 (1) (iii) and Article 149 (1) (iii) upwards, on a permanent or temporary basis, up to a maximum level.

2012/03/08
Committee: ECON

Sharon BOWLES, Ramon TREMOSA i BALCELLS, Olle SCHMIDT

Proposal for a regulation
Article 174 – paragraph 1 – subparagraph 1 – point b

(b) the obligor is past due more than 90 days on any material credit obligation to the institution, the parent undertaking or any of its subsidiaries. In the case of retail exposures fully and completely secured by Mortgages on Residential Property, and for exposures to SME commercial mortgages the competent authority shall set a number of days past due of between 90 days and 180 days for 50% of the exposures if local conditions make it appropriate.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 187 a (new)

Article 187 a Benchmarking Institutions shall be required to run a benchmark portfolio through their models and produce and disclose on a quarterly basis the loan/loss reserve level, value of risk, stress-test results and risk weighted asset value. The EBA shall establish the benchmark portfolio by June 2013 and publish details on its website. The EBA may update the portfolio in the light of developments in assets and models and comparison with international benchmarking.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 195 – paragraph 8 – subparagraph 1 – point a

(a) there are liquid markets, evidenced by frequent transactions appropriate to the asset type, for the disposal of the collateral in an expeditious and economically efficient manner. Institutions shall carry out the assessment of this condition periodically and where information indicates material changes in the market;

2012/03/08
Committee: ECON

Proposal for a regulation
Article 195 – paragraph 8 – subparagraph 1 – point d

(d) the institution demonstrates ~~that t~~, whe re~~alised proceeds from the collateral are not below 70% of the collateral value in more than 10% of all liquidations for a given type of~~ asset type and data sufficiency permit, that most liquidations do not result in proceeds significantly below the collateral value. Where there is material volatility in the market prices, institutions demonstrate to the satisfaction of the competent authorities that their valuation of the collateral is sufficiently conservative.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 197 – paragraph 1 – point g – point ii

(ii) in the case of institutions calculating risk-weighted exposure amounts and expected loss amounts under the IRB Approach, those other corporate entities do not have a credit assessment by a recognised ECAI and are internally rated as having a PD equivalent to that associated with the credit assessments of ECAIs determined by EBA to be associated with credit quality step 2 or above the rules for risk weighting of exposures to corporates under Chapter 2.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 216 – paragraph 9 – subparagraph 1 – point a

(a) ~~what represents an~~definitions for immaterial portfolios for the purpose of paragraph 3;

2012/03/08
Committee: ECON

Proposal for a regulation
Article 216 – paragraph 9 – subparagraph 1 – point a a (new)

(aa) assessment methodology under which competent authorities permit institutions to use the IRB;

2012/03/08
Committee: ECON

Proposal for a regulation
Article 216 – paragraph 9 – subparagraph 1 – point b

(b) the criteria for determining whether an internal model is sound and implemented ~~with integrity~~ for the purposes of paragraphs 4 and 5 and master netting agreements.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 289 – paragraph 1 – subparagraph 1 – point c

(c) contractual cross-product netting agreements for institutions that have received the approval of the competent authority to use the method set out in Section 6 for transactions falling under the scope of that method. This shall be monitored by the EBA.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 297 – paragraph 1

1. An institution shall apply a risk weight of 2% to the exposure values of all its trade exposures with CCPs, except where such an institution is acting purely as a financial intermediary between a client and a CCP. Where a clearing member acts as a financial intermediary between a client and a CCP, a risk weight of 0% shall apply to the exposure values of its trade exposures with the CCP for the client trade.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 297 – paragraph 5 a (new)

5a. Notwithstanding paragraph 1, the total CVA charges should not be more for clearing than for bilateral arrangements. In the event that this is the case the competent authority shall introduce modifications to lower the CVA. EBA, in consultation with ESMA, shall develop draft regulatory technical standards to specify the modifications.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 299 – paragraph 7 – subparagraph 1 – introductory part

EBA, in close cooperation with the competent authorities for supervision and oversight of CCPs, shall develop implementing technical standards to specify the following:

2012/03/08
Committee: ECON

Proposal for a regulation
Article 299 – paragraph 7 – subparagraph 2

EBA, in close cooperation with the competent authorities for supervision and oversight of CCPs, shall submit those draft implementing technical standards to the Commission by 1 January 2014.

2012/03/08
Committee: ECON

Sharon BOWLES, Carl HAGLUND, Olle SCHMIDT

Proposal for a regulation
Article 300 a (new)

Article 300a CCPs with a banking licence CCPs with a banking licence as permitted under Regulation (EU) No [xxxx/xxxx] of [date] on OTC derivative transactions, central counterparties and trade repositories ("EMIR") shall publish their use of central bank liquidity to demonstrate that they are not reliant on central bank liquidity for solvency or cheap financing that would constitute unfair competition. EBA in consultation with ESMA shall monitor the use and impact of the application of additional requirements under this Regulation by Member States, in particular to ensure CCPs have adequate access to liquidity, and assess any possible unintended consequences and spill over effects on other Member States or distortion of the single market.

2012/03/08
Committee: ECON

Proposal for a regulation
Article 372 – paragraph 3 a (new)

3a. Transactions with international organisations referenced in Article 113 and with multilateral development banks referenced in Article 112.2 are excluded from the own funds requirements for CVA risk.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 372 – paragraph 3 b (new)

3b. Transactions with counterparties referred to in Article 2 paragraph (23) and therein subject to the transitional provisions referred to in Article 71 of the Regulation (EU) No [xxxx/xxxx] of [date] on OTC derivative transactions, central counterparties and trade repositories ("EMIR) are excluded from the own funds requirements for CVA risk, until the transitional provisions referred to in Article 71 of the Regulation (EU) No [xxxx/xxxx] of [date] on OTC derivative transactions cease to apply.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 372 – paragraph 3 c (new)

3c. Transactions with counterparties that do not meet the conditions referred to in Article 5 [Non-financial counterparties] of the Regulation (EU) No [xxxx/xxxx] of [date] on OTC derivative transactions, central counterparties and trade repositories ("EMIR) and therefore not subject to the clearing obligation are excluded from the own funds requirements for CVA risk.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 373 – paragraph 6 – subparagraph 1 – point b a (new)

(ba) a methodology for determining which transactions with central governments, regional authorities and local governments are excluded from the provisions referred to in 372.4 (new) and in the Regulation (EU) No [xxxx/xxxx] of [date] on OTC derivative transactions, central counterparties and trade repositories (EMIR).

2012/03/09
Committee: ECON

Proposal for a regulation
Article 373 – paragraph 6 – subparagraph 1 – point b b (new)

(bb) when central governments, regional authorities and local governments should be required to have bilateral Credit Support Annexes in force with high quality collateral posting unrelated to their own credit.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 389 – paragraph 2 – point g

(g) asset items constituting claims on central banks in the form of ~~required minimum~~ reserves held at those central banks which are denominated in their national currencies;

2012/03/09
Committee: ECON

Proposal for a regulation
Article 402 – paragraph 1

Where a ~~credit~~n institution does not meet, or is expected not to meet the requirement set out in Article 401(1), it shall immediately notify the competent authorities and shall submit without undue delay to the competent authority a plan for the timely restoration of compliance with Article 401. Until such compliance has been restored, the credit institution shall report the items daily by the end of each business day unless the competent authority authorises a lower frequency and a longer delay. Competent authorities shall only grant such authorisations based on the individual situation of a credit institution. They shall monitor the implementation of the restoration plan and shall require a more timely restoration if appropriate. EBA, in cooperation with the ESRB, shall issue guidance on compliance with liquidity requirements, including principles for the possible use of the stock of liquid assets in a stress scenario and how to address non-compliance.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 404 – paragraph 3 – subparagraph 1

Institutions shall only report as liquid assets that fulfil ~~each of the following conditions~~(a) and (b) and at least one of (c), (d) or (e):

2012/03/09
Committee: ECON

Bendt BENDTSEN, Anne E. JENSEN, Sharon BOWLES, Dan JØRGENSEN

Proposal for a regulation
Article 404 – paragraph 3 – subparagraph 1 – point b

(b) they are eligible collateral in normal times ~~for intraday liquidity needs and overnight liquidity facilities of a central bank in a Member State or if the liquid assets a~~to a central bank for liquidity and liquidity insurance operations in a Member State or third country where the~~ld to meet liquidity outflows in the currency of a third country, of the central bank of that third country~~ credit institution is operationally capable and entitled to use them for immediate access to those facilities;

2012/03/09
Committee: ECON

Proposal for a regulation
Article 404 – paragraph 3 – subparagraph 1 – point c

(c) their price is generally agreed upon by market participants and can easily be observed in the market, or their price can be determined by a formula that is easy to calculate based on publicly available inputs and does not depend on strong assumptions as is typically the case for structured or exotic products;

2012/03/09
Committee: ECON

Bendt BENDTSEN, Anne E. JENSEN, Sharon BOWLES, Dan JØRGENSEN

Proposal for a regulation
Article 404 – paragraph 3 – subparagraph 1 – point e

(e) they are tradable on active outright sale or via a simple repurchase agreement on approved repurchase markets with a large and diverse number of market participants, a high trading volume, and market breadth and depth. These criteria should be interpreted separately for each market;.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 404 – paragraph 3 – subparagraph 1 – point e

(e) they are tradable on active outright sale or repurchase agreement markets with a large and diverse number of market participants, a high trading volume, and market breadth and depth. These criteria should be interpreted separately for each market;

2012/03/09
Committee: ECON

Proposal for a regulation
Article 404 – paragraph 5

5. Shares or units in CIUs may be treated as liquid assets up to an absolute amount of 250 million EUR provided that the requirements in Article 127(3) are met and that the CIU, apart from derivatives to mitigate interest rate or credit risk, only invests in liquid assetsprovided that their share in the total liquidity coverage requirement is not disproportionate having regard to the size and business model of the institution, the requirements in Article 127(3) are met and that the CIU, apart from derivatives to mitigate interest rate or credit risk, only invests in liquid assets. EBA shall develop draft regulatory technical standards to specify when CIUs' share in the total liquidity coverage requirement would be disproportionate. EBA shall submit those draft regulatory technical standards to the Commission by 1 January 2013. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1093/2010.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 405 – paragraph 1 – point b

(b) not less than 60% of the liquid assets that the institution reports are assets referred to under points (a) to (c) of Article 404(1), in instances where the institution has fully approved liquidity recovery plan in its resolution plan as referred to in Article 8a of Directive [inserted by OP] this may be reduced to 40%. Such assets owed and due or callable within 30 calendar days shall not count towards the 60% unless the assets have been obtained against collateral that also qualifies under points (a) to (c) of Article 404(1);

2012/03/09
Committee: ECON

Proposal for a regulation
Article 405 – paragraph 1 – point c

(c) they are legally and practically readily available at any time during the next 30 days to be liquidated via outright sale or via simple repurchase agreements inon an approved repurchase market order to meet obligations coming due. Liquid assets referred to in point (c) of Article 404 which are held in third countries where there are transfer restrictions or which are denominated in non-convertible currencies shall be considered available only to the extent that they correspond to outflows in the third country or currency in question;

2012/03/09
Committee: ECON

Proposal for a regulation
Article 405 – paragraph 1 – point e – introductory part

(e) a portion of the liquid assets is periodically and at least annually liquidated via outright sale or via simple repurchase agreements on approved repurchase markets for the following purposes:

2012/03/09
Committee: ECON

Proposal for a regulation
Article 405 – paragraph 1 – point e – point i

(i) to test the access to ~~the market for these assets~~liquidity,

2012/03/09
Committee: ECON

Proposal for a regulation
Article 405 – paragraph 1 – point f – introductory part

(f) price risks associated with the assets may be hedged but the liquid assets are subject to appropriate internal arrangements that ensure that they ~~will not be used in other ongoing operations, including: (i) hedging or o~~are readily available to ther tr~~ading strategies; (ii) providing credit enhancements in structured transactions; (iii) to cover operational costs.~~easury when needed;

2012/03/09
Committee: ECON

Proposal for a regulation
Article 405 – paragraph 1 – point g

(g) the denomination of the liquid assets is broadly consistent with the distribution by currency of liquidity outflows after the deduction of capped inflows.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 406 – paragraph 1

1. The value of a liquid asset to be reported shall be its market value, subject to haircuts where appropriate. Where haircuts ~~that~~are applied they should reflect at least the duration, the credit and liquidity risk and typical repo haircuts in periods of general market stress. The haircuts shall not be less than 15% for the assets in point (d) of Article 404(1). If the credit institution hedges the price risk associated with an asset, it shall take into account the cash flow resulting from the potential close-out of the hedge.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 408 – paragraph 1 – point d

(d) the percentage of the maximum amount that can be drawn during the next 30 days from undrawn credit and liquidity facilities ~~that qualify as medium or medium to low risk under Annex I,~~ as set out in Article 412;

2012/03/09
Committee: ECON

Proposal for a regulation
Article 408 – paragraph 2 – subparagraph 1

Institutions shall regularly assess the likelihood and potential volume of liquidity outflows during the next 30 days as far as products or services are concerned, which are not captured in Articles 410 to 412 and which these institutions offer or sponsor or which potential purchasers would consider to be associated with these institutions, including any contractual arrangements such as other off balance sheet and contingent funding obligations including trade finance off balance sheet related products, as defined in Article 416 [and Annex 1(revised)]. These outflows shall be assessed under the assumption of a combined idiosyncratic and market-wide stress scenario.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 410 – paragraph 4 – subparagraph 1 – point a

(a) by the depositor in order to obtain clearing, custody or cash management services from the institution, including correspondent banking operational accounts. Correspondent banking operational accounts are those where a substantial portion of commercial transactions are processed, as opposed to settlement accounts where the large majority of interbank treasury settlements are processed. Prime brokerage services shall be excluded;

2012/03/09
Committee: ECON

Proposal for a regulation
Article 410 – paragraph 4 – subparagraph 3

Clearing, custody or cash management services referred to in point (a) only covers such services to the extent that they are rendered in the context of an established relationship on which the depositor has substantial dependency. Theyis shall ~~not merely consist in~~include correspondent banking o~~r prime brokerage services and~~perational accounts as defined in (a) where the institution shall have objective evidence that the client is unable to withdraw those amounts over a 30 day horizon without compromising its operational functioning.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 410 – paragraph 5

5. Institutions shall multiply liabilities resulting from deposits by clients that are not financial customers by ~~75% to the extent they do not fall under paragraph 4~~the appropriate one of a range of percentages to be determined by the EBA to the extent they do not fall under paragraph 4. EBA shall develop draft regulatory technical standards for the range of percentages, taking account of categories of client such as SMEs and long term corporates, by January 1st 2013.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 412 – paragraph 1

1. Institutions shall report outflows from credit and liquidity facilities, which shall be determined as a percentage of the maximum amount that can be drawn within the next 30 days. This maximum amount that can be drawn may be assessed net of any liquidity requirement that would be mandated under Article 408 paragraph 2 for the trade finance off balance sheet items and net of the value according to Article 406 of collateral to be provided if the institution can reuse the collateral and if the collateral in the form of liquid assets in accordance with Article 404. The collateral to be provided may not be assets issued by the counterparty of the facility or one of its affiliated entities. If the necessary information is available to the institution, the maximum amount that can be drawn for credit and liquidity facilities provided to SSPEs shall be determined as the maximum amount that could be drawn given an SSPEs own obligations coming due over the next 30 days.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 412 – paragraph 1

1. Institutions shall report outflows from credit and liquidity facilities, which shall be determined as a percentage of the maximum amount that can be drawn. This maximum amount that can be drawn may be assessed net of the value according to Article 406 of collateral to be provided if the institution can reuse the collateral and if the collateral in the form of liquid assets in accordance with Article 404. The collateral to be provided may not be assets issued by the counterparty of the facility or one of its affiliated entities. If the necessary information is available to the institution, the maximum amount that can be drawn for credit and liquidity facilities provided to SSPEs shall be determined as the maximum amount that could be drawn given an SSPEs own obligations coming due over the next 30 days. For conditionally revocable credit and liquidity facilities the maximum amount shall be determined based on the economic reality underlying the contract. For unconditionally revocable facilities, the maximum amount shall be zero.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 412 – paragraph 3 – introductory part

3. The maximum amount that can be drawn of undrawn credit and liquidity facilities within the next 30 days shall be multiplied by 10% where they meet the following conditions:

2012/03/09
Committee: ECON

Proposal for a regulation
Article 412 – paragraph 3 – point c

(c) they have not been provided for the purpose of replacing funding of the client in situations where the isy are unable to ~~obtain its funding requirements in the financial markets~~refinance their debt securities maturing within 30 days in the financial markets (either because the client does not have any outstanding debt programmes that can be used to issue securities maturing within 30 days or the facilities have been expressly precluded from being used to refinance any debt securities maturing within 30 days).

2012/03/09
Committee: ECON

Proposal for a regulation
Article 412 – paragraph 3 a (new)

3 a. Where an undrawn credit or liquidity facility does not meet the criteria of paragraphs 2 or 3 and the counterparty is not a credit institution or SSPE, the following percentages shall be applied: (a) facilities provided for the purpose of refinancing securities eligible for the liquidity buffer: (i) 10% where securities are of extremely high liquidity and credit quality (Article 404, para 1b); or (ii) 25% where securities are of high liquidity and credit quality (Article 404, para 1d) (b) facilities provided to non-financial corporates where securities are of high credit quality 25 to 50%; and (c) other facilities provided to non- financial corporates 50 to 100% Where a range is indicated, credit institutions may utilise internal models to determine the appropriate percentage subject to approval of such models from national regulators. Without such approval the highest percentage within the range must be applied.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 412 – paragraph 4 – introductory part

4. The maximum amount that can be drawn of other undrawn credit and liquidity facilities within the next 30 days shall be multiplied by 100%. This applies in particular to the following:

2012/03/09
Committee: ECON

Proposal for a regulation
Article 412 – paragraph 4 – point a

(a) liquidity facilities that the institution has granted to credit institutions or SSPEs;

2012/03/09
Committee: ECON

Proposal for a regulation
Article 413 – paragraph 2 – point a

(a) monies due from ~~customers that are not financial customer~~small and medium sized enterprises shall be reduced by 50% of their value or by the contractual commitments to those customers to extend funding, whichever is higher. This does not apply to monies due from secured lending and capital market driven transactions as defined in Article 188 that are collateralised by liquid assets according to Article 404;

2012/03/09
Committee: ECON

Proposal for a regulation
Article 413 – paragraph 4 – subparagraph 1 – introductory part

~~Competent authorities may grant the permission to apply, by derogation from paragraph 2 point c), a higher inflow on a case by case basis for credit and liquidity facilitie~~Intra group inflows should receive symmetrical treatment with intragroup outflows when all of the following conditions are fulfilled:

2012/03/09
Committee: ECON

Proposal for a regulation
Article 413 – paragraph 4 – subparagraph 1 – point a

(a) there are ~~reasons to expect a higher inflow even under idiosyncratic~~no impediments to the transfer of funds from the borrower to the provider even under stress;.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 413 – paragraph 4 – subparagraph 1 – point c

~~(c) the institution and the provider shall be established in the same member State unless Article 18(1)(b) applies.~~deleted

2012/03/09
Committee: ECON

Proposal for a regulation
Article 413 – paragraph 4 – subparagraph 1 – point c

~~(c) the institution and the provider shall be established in the same Member State unless Article 18(1)(b) applies.~~deleted

2012/03/09
Committee: ECON

Proposal for a regulation
Article 413 – paragraph 4 – subparagraph 2

Where such higher inflow is permitted to be applied, the competent authorities shall inform EBA about the decision and its reasons. The conditions for such higher inflows shall be regularly reviewed by the competent authorities.deleted

2012/03/09
Committee: ECON

Proposal for a regulation
Article - 414 (new) (under Title III)

Article -414 a Net Stable Funding Ratio Institutions shall make arrangements to ensure that their available funding is greater than their required stable funding. After being introduced as a binding minimum standard according to the procedure set out in Article 481, institutions shall at all times hold items providing stable funding, the sum of which is greater than items requiring stable funding, to ensure that long term assets are funded with at least a minimum amount of stable liabilities in relation to their liquidity risk profiles. (This could possibly be positioned as an article 413a but the AT4AM did not allow for it to be positioned there and still come under the Title III for stable funding.)

2012/03/09
Committee: ECON

Proposal for a regulation
Article 415 – paragraph 1 – point j

(j) undrawn committed credit facilities that qualify as ‘'medium risk’' or ‘'medium/low risk’' under Annex I.

2012/03/09
Committee: ECON

Wolf KLINZ, Sharon BOWLES

Proposal for a regulation
Article 416 – paragraph 4 – subparagraph 1 – point c (new)

(c) not recognised as a contractual relationship between a client and clearing member which enables that the client to clear its transactions with a CCP as defined in Article 294.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 416 – paragraph 6 – subparagraph 2

In determining the exposure value of items listed in Annex II and of credit derivatives, institutions shall ~~take into account the effects of contracts for novation and other netting agreements, except contractual cross-product netting agreements, in accordance with Article 289~~calculate the exposure value on the basis of IFRS accounting standards.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 416 – paragraph 8 – point a a (new)

(a a) the specific credit risk adjustments for the Trade Finance off balance sheet items of documentary credits in which underlying shipment acts as collateral and other self-liquidating transactions and warranties (including tender, performance customs and tax bonds) and guarantees not having the character of credit substitutes is 20%, and for trade finance off balance sheet items of documentary credits issued and confirmed and irrevocable standby letters of credit not having the character of credit substitutes is 50%.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 416 a (new)

Article 416 a Leverage Ratio 1. From 1 January 2018, systemic and large international financial institutions shall at all times maintain a minimum leverage ratio of 3%. 2. Following the review required by article 482, the EBA may develop draft regulatory technical standards to increase or decrease the leverage ratio specified in paragraph 1 or to specify different ratios for different kinds of institutions, taking into account any unintended spill over effects this could have, the findings of the review and developments in relevant international standards. Power is conferred on the Commission to adopt the regulatory technical standards referred to in the first sub-paragraph in accordance with the procedure laid down in Articles 10-14 of Regulation (EU) No 1093/2010.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 417 – paragraph 1 – subparagraph 1 a (new)

From 1st January 2015 there shall be progressive disclosure of the leverage ratio, including its components, and any specificities or measures under review.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 419 – paragraph 1 – subparagraph 1

Institutions may seek exemption fromit one, or ~~more~~a minor number of, the disclosures listed in Title II if the information provided by such disclosures is not regarded as material, except for the disclosures laid down in Article ~~424~~s 422 (2), 424, 434a, 434b and 435. Such exemption must be reported to the competent authority, which may impose an alternative or partial requirement. No exemption shall be sought where it would result in a misrepresentation. Notification to the competent authority and any modification or reporting imposed does not discharge liability arising from non-reporting being found to have had a material effect.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 419 – paragraph 2 – subparagraph 1

Institutions may ~~also omit one or more~~seek exemption from one or a minor number of items of information included in the disclosures listed in Titles II and III if those items include information which is regarded as proprietary or confidential in accordance with the second and third subparagraphs, except for the disclosures laid down in Article ~~424.~~ s 422 (2), 424, 434a, 434b and 435. Such exemption must be reported to the competent authority, which may impose an alternative or partial requirement. No exemption shall be sought where it would result in a misrepresentation. Notification to the competent authority and any modification or reporting imposed does not discharge liability arising from non-reporting being found to have had a material effect.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 419 – paragraph 3

3. In the cases referred to in paragraph 2, the institution concerned shall state in its disclosures ~~the fact that~~and financial statements the specific items of information which are not disclosed, the reason for non-disclosure, and publish more general information about the subject matter of the disclosure requirement, except where these are to be classified as proprietary or confidential.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 420 – paragraph 1

Institutions shall publish the disclosures required by this Part at least ~~on an annual basis~~twice a year.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 420 – paragraph 2

AThe date of annual disclosures shall ~~be published in conjunction~~correspond with the date of publication of the financial statements.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 420 – paragraph 3

~~Institution~~Competent authorities shall assess the need for types of institutions to publish some or all disclosures more frequently ~~than annually~~ in the light of the relevant characteristics of their business such as scale of operations, range of activities, presence in different countries, involvement in different financial sectors, and participation in international financial markets and payment, settlement and clearing systems. That assessment shall pay particular attention to the possible need for more frequent disclosure of items of information laid down in Article 424, and points (b) to (e) of Article 425, and information on risk exposure and other items prone to rapid change. Competent authorities may require such more frequent disclosures and shall inform the EBA, including their reasoning and assessment.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 421 – paragraph 1

1. Institutions may determine the appropriate medium, location and means of verification to comply effectively with the disclosure requirements laid down in this Part except for Articles 422 (2), 424, 434a, 434b and 435. To the degree feasible, all disclosures shall be provided electronically, in one medium or location.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 421 – paragraph 1 a (new)

1 a. Institutions shall disclose information laid down in Articles 422 (2), 424, 434a, 434b and 435 on their website in a clear and meaningful format.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 421 – paragraph 2

2. Equivalent disclosures made by institutions under accounting, listing or other requirements may be deemed to constitute compliance with this Part. If disclosures are not included in the financial statements, institutions shall clearly indicate where they can be found. Institutions shall publish all disclosures in a coherent form, with a full index of all disclosures and how they can be located on their website.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 422 – paragraph 1 – point f

(f) a concise risk statement, including key information, approved by the management body succinctly describing the institution's overall risk profile associated with the business strategy. This statement shall include key ratios and figures providing external stakeholders with a concise but comprehensive view of how risk profile of the institution interacts with the risk tolerance set by the management bodye EBA shall produce guidelines for key information relevant to business model type.

2012/03/09
Committee: ECON

Sharon BOWLES, Ramon TREMOSA i BALCELLS, Sylvie GOULARD

Proposal for a regulation
Article 434 a (new)

Article 434 a Disclosure on assets 1. Institutions shall disclose among the key indicators in their annual report the following: (a) the level of unencumbered assets. (b) the level of assets covering deposits. (c) their return on assets, calculated as the net profit divided by the total balance sheet.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 434 b (new)

Article 434b Disclosure of lending to the real economy Institutions shall report on the level of their activity directly related to corporates and SMEs.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 435 – paragraph 1 – point a a (new)

(a a) information on how the long-term interests of shareholders, investors and other stakeholders in the institution, and the public interest have been taken into account in the decision-making process.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 435 – paragraph 2 a (new)

2 a. All institutions shall provide a short statement on its remuneration policy in its annual report, setting out in particular the level and mix of remuneration, the procedure for setting remuneration and the performance conditions to which entitlement to short-term and long-term incentive schemes are subject.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 436 – paragraph 2 – subparagraph 1

EBA shall develop draft implementing technical standards to determine the uniform disclosure template for the progressive disclosure referred to in paragraph 1, with due regard to its components, any specificities or measures under review, and the instructions on how to use such template.

2012/03/09
Committee: ECON

Proposal for a regulation
Title II a (new)

Title II a Additional reporting requirements Article 436 a Additional reporting requirements Institutions shall report the level, at least in aggregate terms, of repurchase agreements, securities lending and all forms of encumbrance or claw back arrangements. Such information should be reported to a trade repository or a Central Securities Depository to enable access, inter alia, by EBA, ESMA, relevant competent authorities, the ESRB and relevant central banks and the ESCB. In liquidation proceedings unregistered claw back arrangements shall not have legal effect.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 441 – paragraph 1 – point g a (new)

(g a) amendment to format, structure and level of the own funds requirements as set out in articles 295,296, 297 298, 299, and 300 to take account of modifications to international standards for exposures to a central counterparty.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 443 – paragraph 1 – point k a (new)

(k a) ring-fencing to establish minimum capital requirements applicable to portfolios of SME loans, trade finance or other specific lending activities of critical significance to economic growth.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 445 – paragraph 2

2. The delegation of powers referred to in Articles 441 ~~to 444~~, 442, 443, 444 and 481(3a) shall be conferred for an indeterminate period of time from the date referred to in Article 488.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 445 – paragraph 3

3. The delegation of power referred to in Articles 441 ~~to 444~~, 442, 443, 444 and 481(3a) may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of the delegated acts already in force.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 445 – paragraph 5

5. A delegated act adopted pursuant to Articles 441 ~~to 444~~, 442, 443, 444 and 481(3a) shall enter into force only if no objection has been expressed by the European Parliament or the Council within a period of 23 months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by 23 months at the initiative of the European Parliament or the Council.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 463 – paragraph 1

1. This Article shall apply only to instruments that were issued prior to ~~20 July~~31st December 20112, and that are not those referred to in Article 462(1). Institutions shall not be allowed to hold these instruments, in particular those issued between 12 September 2010 and 31st December 2012, in disproportionate amounts. The EBA shall monitor and report on this by January 1st 2015.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 463 – paragraph 5 a (new)

5 a. EBA shall develop draft regulatory technical standards to specify the following: whether and when an institution is holding a disproportionate amount of instruments specified in the first paragraph of this article. EBA shall submit those draft regulatory technical standards to the Commission by 1 January 2013. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1093/2010.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 476 – paragraph 2

2. The competent authorities may, after having consulted EBA, waive the application of paragraph 1(b) to institutions provided that all the requirements for the Internal Ratings Based Approach set out in Part Three, Title II, Chapter 3, Section 6 and the qualifying criteria for the use of the Advanced Measurement Approach set out in Part Three, Title III, Chapter 4 are met and provided that benchmark portfolio disclosures under article 187a (new) have been provided for at least 1 year.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 476 a (new)

Article 476a Competent authorities may exempt institutions from applying paragraph 1(b) if the institutions do not apply the transitional provisions in Part 10, Title 1, Chapter 1-3 and the transitional provisions in the directive (xxx) Title XI, Chapter 2.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 478 a (new)

Article 478a Quality benchmarking of covered bonds EBA shall develop an appropriate quality benchmark which bonds eligible for treatment set out in Article 124(3) or (4) must meet to be reported as liquid assets under Article 404. The benchmark should have regard to: a) the quality of the collateral against which a bond is secured, including: (i) The ability of the collateral to repay interest and principal on a timely basis (ii) The ability to liquidate the collateral, if required, on a timely basis and without incurring a discount to its attributable value in the covered pool or disruption to the market for the covered pool collateral, (iii) The ability to accurately value the covered pool collateral on a continuous and timely basis (vi) Risk from currency, interest rate or geographical distributions (v) The risk that lack of granularity of assets in the asset pool may have implications for collateral performance or liquidation (iv) Counterparty credit risk in relation to facilities and services provided to the covered bond issuer, including not only interest rate and currency hedging , but all other forms of counterparty risk. b) the level of disclosure by the issuer including all materially relevant data on the credit quality and performance of the individual underlying exposures, cash flows and collateral supporting the bond, as well as such information that is necessary to conduct comprehensive and well informed stress tests on the cash flows and collateral values supporting the underlying exposures. EBA shall submit this quality benchmark to the Commission by 1 January 2014.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 481 – title

Liquidity and net stable funding requirements

2012/03/09
Committee: ECON

Proposal for a regulation
Article 481 – paragraph 2 – introductory part

2. EBA and ESMA shall, by 31 December 2013, report to the Commission on appropriate uniform definitions of high and of extremely high liquidity and credit quality of transferable assets for purposes of Article 404~~. EB~~, taking into account all relevant factors such as the applicable legal framework, incentive structures, available market initiatives and tools designed to enhance transparency and liquidity of assets, their volatility compared to other assets and which haircuts can be applied. In particular it shall be assessed if gold, equities and major index linked equity instruments, some corporate bonds, bonds and other securities backed by mortgages and which have strict due diligence and performance criteria, can be considered eligible assets under art. 404 (3). EBA and ESMA shall in particular test the adequacy of the following criteria and the appropriate levels for such definitions:

2012/03/09
Committee: ECON

Proposal for a regulation
Article 481 – paragraph 3 a (new)

3 a. The Commission shall be empowered to adopt a delegated act in accordance with Article 445 to specify progressive public disclosure of institutions' stable sources of funding in Articles 414 and 415 prior to later introduction of an NSFR.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 481 – paragraph 3 b (new)

3 b. EBA shall develop methodologies for determining the amount of stable funding available to and required by institutions. These methodologies shall provide incentives and disincentives as appropriate to encourage towards more stable longer term funding of assets, business activities, investment and funding of institutions. EBA shall have regard to the views of ESRB and to any other relevant international standards. EBA may develop different methodologies for different types of institution. EBA shall present a report on the methodologies developed in accordance with paragraph (3) to the European Parliament, the Council and the Commission by 31 October 2016. The report shall contain an analysis of the application of those methodologies to institutions during the period from 1 January 2013 until 30 June 2016. The competent authorities shall make available to EBA the information received from institutions in accordance with Articles 414 and 415 to facilitate the development of methodologies in accordance with paragraph (1). By 31 December 2016, the Commission shall report and submit a legislative proposal to the European Parliament and Council to introduce the net stable funding ratio

2012/03/09
Committee: ECON

Proposal for a regulation
Article 482 – paragraph 1

1. The Commission shall submit by 31 December 2016 a report on the impact and effectiveness of the leverage ratio to the European Parliament and the Council. Where appropriate, the report shall be accompanied by a legislative proposal on the introduction of one or more levels for the leverage ratio ~~that institutions would be required to meet~~appropriate for different types of institutions, suggesting an adequate calibration for those levels and any appropriate adjustments to the capital measure and the total exposure measure as defined in Article 416.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 482 – paragraph 2 – point g a (new)

(g a) whether a band for the or each leverage ratio should be defined with facility to reduce to a lower level in economic downturns.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 482 – paragraph 2 – point i a (new)

(i a) the effect of accounting standards, in particular with respect to netting and achieving global comparability of accounting standards.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 484 a (new)

Article 484 a Own fund requirements for exposures to a Central Counterparty By 31 December 2015 the Commission shall review and report on the own funds requirements as set out in Articles 294,295, 296, 297, 298, 299 and 300 and shall submit this report to the European Parliament and the Council, and, if appropriate, a legislative proposal.

2012/03/09
Committee: ECON

Proposal for a regulation
Article 485 a (new)

Article 485 a Long term financing The Commission shall report on the impact of this regulation on encouraging long-term investments by 31st December 2015.

2012/03/09
Committee: ECON

Proposal for a regulation
Annex 1

~~[…]~~deleted

2012/03/09
Committee: ECON

Proposal for a regulation
Annex 1 – heading 1

~~Classification of Off-balance-sheet items~~deleted

2012/03/09
Committee: ECON

Proposal for a regulation
Annex 1 – point 1 – introductory part

1. Full risk: – Guarantees having the character of credit substitutes, – Credit derivatives, – Acceptances, – Endorsements on bills not bearing the name of another institution, – Transactions with recourse, – Irrevocable standby letters of credit having the character of credit substitutes, – Assets purchased under outright forward purchase agreements, – Forward deposits, – The unpaid portion of partly-paid shares and securities, – Asset sale and repurchase agreements as defined in Article 12(3) and (5) of Directive 86/635/EEC, – Other items also carrying full risk.deleted

2012/03/09
Committee: ECON

Proposal for a regulation
Annex 1 – point 2 – introductory part

2. Medium risk: – Documentary credits issued and confirmed (see also ‘Medium/low risk’), – Warranties and indemnities (including tender, performance, customs and tax bonds) and guarantees not having the character of credit substitutes, – Irrevocable standby letters of credit not having the character of credit substitutes, – Undrawn credit facilities (agreements to lend, purchase securities, provide guarantees or acceptance facilities) with an original maturity of more than one year, – Note issuance facilities (NIFs) and revolving underwriting facilities (RUFs), – Other items also carrying medium risk and as communicated to EBA.deleted

2012/03/09
Committee: ECON

Proposal for a regulation
Annex 1 – point 3 – introductory part

3. Medium/low risk: – Documentary credits in which underlying shipment acts as collateral and other self-liquidating transactions, – Undrawn credit facilities which comprise agreements to lend, purchase securities, provide guarantees or acceptance facilities with an original maturity of up to and including one year which may not be cancelled unconditionally at any time without notice or that do not effectively provide for automatic cancellation due to deterioration in a borrower's creditworthiness, – Other items also carrying medium/low risk and as communicated to EBA.deleted

2012/03/09
Committee: ECON

Proposal for a regulation
Annex 1 – point 4 – introductory part

4. Low risk: – Undrawn credit facilities comprising agreements to lend, purchase securities, provide guarantees or acceptance facilities which may be cancelled unconditionally at any time without notice, or that do effectively provide for automatic cancellation due to deterioration in a borrower's creditworthiness. Retail credit lines may be considered as unconditionally cancellable if the terms permit the institution to cancel them to the full extent allowable under consumer protection and related legislation; and – Other items also carrying low risk and as communicated to EBA.deleted

2012/03/09
Committee: ECON