[ParlTrack]

Luis GARICANO, Esther DE LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Recital 15

(15) To ensure that the impacts of the output floor on low-risk residential mortgage lending by institutions using IRB approaches are spread over a sufficiently long period and thus avoid disruptions to that type of lending that could be caused by sudden increases in own funds requirements, it is necessary to provide for a specific transitional arrangement. For the duration of the arrangement, when calculating the output floor, IRB institutions should be able to apply a lower risk weight to the part of their residential mortgage exposures that is considered secured by residential property under the revised SA-CR. To ensure that the transitional arrangement is available only to low-risk mortgage exposures, appropriate eligibility criteria, based on established concepts used under the SA-CR, should be set. The compliance with those criteria should be verified by competent authorities. Because residential real estate markets may differ from one Member States to another, the decision on whether to activate the transitional arrangement should be left to individual Member States. The use of the transitional arrangement should be monitored by EBA.deleted

2022/08/11
Committee: ECON

Luis GARICANO, Esther DE LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point a – introductory part

(a) where the purpose of a specialised lending exposure is to finance the acquisition of physical assets, including ships, aircraft, satellites, railcars, and fleets, and the income to be generated by those assets comes in the form of cash flows generated by the specific physical assets that have been financed and pledged or assigned to the lender ~~by one or several third parties~~ (‘object finance exposures’), institutions shall apply ~~the following~~a risk weights: of 100%.

2022/08/11
Committee: ECON

Luis GARICANO, Esther DE LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point a – point i

(i) 80 % where the exposure is deemed to be high quality when taking into account all of the following criteria: — obligations even under severely stressed conditions due to the presence of all of the following features: — adequate exposure-to-value of the exposure; — conservative repayment profile of the exposure; — of the assets upon full pay-out of the exposure or alternatively recourse to a protection provider with high creditworthiness; — exposure by the obligor or that risk is adequately mitigated by a commensurate residual asset value or recourse to a protection provider with high creditworthiness; — restrictions over its activity and funding structure; — for risk-mitigation purposes; — material operating risks are properly managed; — the contractual arrangements on the assets provide lenders with a high degree of protection including the following features: — enforceable first-ranking right over the assets financed, and, where applicable, over the income that they generate; — on the ability of the obligor to change anything to the asset which would have a negative impact on its value; — construction, the lenders have a legally enforceable first-ranking right over the assets and the underlying construction contracts; — of the following standards to operate in a sound and effective manner: — asset are tested; — authorisations for the operation of the assets have been obtained; — construction, the obligor has adequate safeguards on the agreed specifications, budget and completion date of the asset, including strong completion guarantees or the involvement of an experienced constructor and adequate contract provisions for liquidated damages;deleted the obligor can meet its financial commensurate remaining lifetime low refinancing risk of the the obligor has contractual the obligor uses derivatives only the lenders have a legally there are contractual restrictions where the asset is under the assets being financed meet all the technology and design of the all necessary permits and where the asset is under

2022/08/11
Committee: ECON

Luis GARICANO, Esther DE LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point a – point ii

~~(ii) 100 % where the exposure is not deemed to be high quality as referred to in point (i);~~deleted

2022/08/11
Committee: ECON

Luis GARICANO, Esther DE LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point c – introductory part

(c) where the purpose of a specialised lending exposure is to finance a ~~project~~single project, either in the form of construction of a new capital installation or refinancing of an existing installation, with or without improvements, in particular projects for the development or acquisition of large, complex and expensive installations, including power plants, chemical processing plants, mines, transportation infrastructure, environment, and telecommunications infrastructure, and the income to be generated by the ~~project is the money generated by the contracts for the output of the installation obtained from one or several parties which are no~~financed project serves both as the primary source of repayment uand~~er management control of the sponsor~~ as security for the loan (‘project finance exposures’), institutions shall apply the following risk weights:

2022/08/11
Committee: ECON

Esther DE LANGE, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 1 – point 93 – point b – point iii

Regulation 575/2013
Article 183 – paragraph 1 – subparagraph 1a

For the purposes of point (d), an ‘unconditional guarantee’ means a guarantee where the credit protection contract does not contain any clause the fulfilment of which is outside the direct control of the lending institution and, that could prevent the guarantor from being obliged to pay out in a timely manner pursuant to the default of the obligor or in the event that the original obligor fails to make any payments due. A clause in the credit protection contract providing that a faulty due diligence or fraud by the lending institution cancels or diminishes the extent of the guarantee offered by the guarantor shall not disqualify that guarantee from being considered as unconditional. Any credit protection contract which can, in the event of fraud of the obligor, be cancelled or of which the extent of credit protection can be diminished, shall not be considered as unconditional.

2022/08/18
Committee: ECON

Esther DE LANGE, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 1 – point 93 – point b – point iii

Regulation (EU) No 575/2013
Article 183 – paragraph 1 – subparagraph 1b

Guarantees where the payment by the guarantor is subject to the lending institution first having to pursue the obligor and that only cover losses remaining after the institutions has completed the workout process shall be considered as unconditional.;deleted

2022/08/18
Committee: ECON

Esther DE LANGE, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point a – point i

Regulation (EU) No 575/2013
Article 208 paragraph 3 – point b – subparagraph 1 a

The value of the property shall not exceed the average value measured for that property, or for a comparable property, as defined in Article 4(1)(74a) over the last ~~three~~six years in case of commercial immovable property, and over the last six years in case of residential property. Modifications made to the property that improve the energy efficiency of the building or housing unit shall be considered as. For the purpose of calculating the average value, institutions shall take the average across property values observed at equal intervals in time and the reference period shall include at least three data points. The value of the property can exceed that average value in case of modifications made to the property that unequivocally increas~~ing~~e its value, such as improvements of the energy efficiency.;

2022/08/18
Committee: ECON

Esther DE LANGE, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point b

Regulation (EU) No 575/2013
Article 208 – paragraph 3a – introductory part

3a. In accordance with paragraph 3 and subject to the approval of the competent authorities, institutions may carry out the valuation and revaluation of the property value by means of advanced statistical or other mathematical methods (‘models’), developed independently from the credit decision process, and subject to the fulfilment of the following conditions:

2022/08/18
Committee: ECON

Luis GARICANO, Esther DE LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 193

‘The Commission shall monitor the implementation of the international standards on own funds requirements for market risk in third countries. Where significant differences between the Union implementation and third countries’ implementation of those international standards are observed, including as regards the impact of the rules in terms of own funds requirements and as regards their entry into application, the Commission shall be empowered to adopt a delegated act in accordance with Article 462 to amend this Regulation by: (a) deliver a level playing field, a multiplier equal to or greater than 0 and lower than 1 to the institutions’ own funds requirements for market risk, calculated for specific risk classes and specific risk factors using one of the approaches referred to in Article 325(1), and laid out in: (i) the alternative standardised approach; (ii) the alternative internal model approach; (iii) simplified standardised approach, to offset those observed differences between the third countries rules and Union law; (b) from which institutions shall apply the own funds requirements for market risk set out in Part Three, Title IV, or any of the approaches to calculate the own funds requirements for market risk referred to in Article 325(1).;deleted applying, where necessary to Articles 325c to 325ay, specifying Articles 325az to 325bp, specifying Articles 326 to 361, specifying the postponing by two years the date

2022/08/18
Committee: ECON

Luis GARICANO, Esther DE LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 193

Regulation (EU) No 575/2013
Article 461a – paragraph 1 a (new)

By 31 December 2025, the Commission shall submit a report to the European Parliament and to the Council, on the implementation of the international standards on own funds requirements for market risk in other jurisdictions. This report may be accompanied by a legislative proposal, if appropriate, in order to ensure a global level playing field.

2022/08/18
Committee: ECON

Luis GARICANO, Esther DE LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 3

3. By way of derogation from Article 92(5)(a), point (i), parent institutions, parent financial holding companies or parent mixed financial holding companies, stand-alone institutions in the EU or stand-alone subsidiary institutions in Member States may, until 31 December2032, assign a risk weight of 65 % to exposures to corporates for which no credit assessment by a nominated ECAI is available provided that that entity estimates the PD of those exposures, calculated in accordance with Part Three, Title II, Chapter 3, is no higher than 0,5 %. EBA shall monitor the use of the transitional treatment laid down in the first subparagraph and the availability of credit assessments by nominated ECAIs for exposures to corporates. EBA shall report its findings to the Commission by 31 December 2028. On the basis of that report and taking due account of the related internationally agreed standards developed by the BCBS, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal by 31 December 2031.deleted

2022/08/18
Committee: ECON

Luis GARICANO, Esther DE LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 4

4. By way of derogation from Article 92(5)(a), point (iv), parent institutions, parent financial holding companies or parent mixed financial holding companies, stand-alone institutions in the EU or stand-alone subsidiary institutions in Member States shall, until 31 December 2029, replace alpha by 1 in the calculation of the exposure value for the contracts listed in Annex II in accordance with the approaches set out in Part Three, Title II, Chapter 6, Sections 3 and 4, where the same exposure values are calculated in accordance with the approach set out in Part Three, Title II, Chapter 3, Section 6 for the purposes of the total un-floored risk exposure amount. The Commission may, having taken into account the EBA report referred to in Article 514, adopt a delegated act in accordance with Article 462 to permanently modify the value of alpha, where appropriate.deleted

2022/08/18
Committee: ECON

Luis GARICANO, Esther DE LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 5

~~5. [...]~~deleted

2022/08/18
Committee: ECON

Luis GARICANO, Esther DE LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 199

Regulation (EU) No 575/2013
Article 495d – title

~~Article 495d Transitional arrangements for unconditional cancellable commitments~~deleted

2022/08/18
Committee: ECON

Luis GARICANO, Esther DE LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 199

Regulation (EU) No 575/2013
Article 495d – paragraph 1

1. By way of derogation from Article 111(2), institutions shall calculate the exposure value of an off-balance sheet item in the form of unconditionally cancellable commitment by multiplying the percentage provided for in that Article by the following factors: (a) January 2025 to 31 December 2029; (b) 25 % during the period from 1 January 2030 to 31 December 2030; (c) 50 % during the period from 1 January 2031 to 31 December 2031; (d) 75 % during the period from 1 January 2032 to 31 December 2032.deleted 0 % during the period from 1

2022/08/18
Committee: ECON

Luis GARICANO, Esther DE LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 199

Regulation (EU) No 575/2013
Article 495d – paragraph 2

2. EBA shall prepare a report to assess whether the derogation referred to in paragraph 1, point (a), should be extended beyond 31 December 2032 and, where necessary, the conditions under which that derogation should be maintained. EBA shall submit the report on its finding to the European Parliament, to the Council, and to the Commission, by 31 December 2028. On the basis of that report and taking due account of the related internationally agreed standards developed by the BCBS, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal by 31 December 2031.’;deleted

2022/08/18
Committee: ECON

Esther DE LANGE, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 1 – point 202

Regulation (EU) No 575/2013
Article 501c – paragraph 2

EBA shall submit a report on its findings to the European Parliament, to the Council and to the Commission by 28 June 2023. On the basis of that report, the Commission shall, where appropriate, submit a legislative proposal to the European Parliament and to the Council. This proposal shall be submitted within one year of publication of the EBA report.;

2022/08/18
Committee: ECON

18 Amendments of Esther DE LANGE related to 2021/0342(COD)

ParlTrack - 2011-2024