Activities of Othmar KARAS related to 2020/0066(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) No 575/2013 and (EU) 2019/876 as regards adjustments in response to the COVID-19 pandemic
Amendments (10)
Amendment 26 #
Proposal for a regulation
Recital 8 a (new)
Recital 8 a (new)
(8a) Due to the extraordinary levels of volatility in financial markets since the outbreak of the COVID-19 pandemic, the quantitative market risk multiplier has been pushed up, which can happen when market volatility has exceeded the levels predicted by an institutions’ internal model. While the BCBS provides for the legal possibility to smoothen such one-off events in market risk models, such provision is not fully available in Regulation (EU) No 575/2013. Therefore, a limited margin of manoeuver for competent authorities should be introduced to exclude the overshootings that do not result from deficiencies in internal models and that have occurred between 1 January 2020 and 31 December 2021. Since this supervisory discretion may be justified also during future times of extraordinary market volatility, the Commission should review this provision with a view to making it permanent as part of the review of Regulation (EU) No 575/2013.
Amendment 48 #
Proposal for a regulation
Article 1 – paragraph 1 – point -1 (new)
Article 1 – paragraph 1 – point -1 (new)
Regulation (EU) No 575/2013
Article 114 – paragraph 6
Article 114 – paragraph 6
(-1) In Article 114, paragraph 6 is deleted.
Amendment 50 #
Proposal for a regulation
Article 1 – paragraph 1 – point -1 a (new)
Article 1 – paragraph 1 – point -1 a (new)
Regulation (EU) No 575/2013
Article 150 – paragraph 1 – point d – point ii
Article 150 – paragraph 1 – point d – point ii
(-1a) In point(d) of Article 150(1), point (ii) is replaced by the following: “(ii) exposures to the central government and central banks are assigned a 0% risk weight under Article 114(2) or (4) or Article 495(2);”; ;”; Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02013R0575-20230628)
Amendment 53 #
Proposal for a regulation
Article 1 – paragraph 1 – point -1 (new)
Article 1 – paragraph 1 – point -1 (new)
Regulation (EU) No 575/2013
Article 366 – paragraph 4 – subparagraph 1 a (new)
Article 366 – paragraph 4 – subparagraph 1 a (new)
(-1) In Article 366(4), the following subparagraph is added: "Competent authorities may in individual cases exclude the overshootings that do not result from deficiencies in the internal model and that have occurred between 1 January 2020 and 31 December 2021 in the calculation of the addend set out in paragraph 3 of this article."
Amendment 57 #
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Regulation (EU) No 575/2013
Article 429a – paragraph 5 – point b a (new)
Article 429a – paragraph 5 – point b a (new)
(aa) in paragraph 5, the following point is added: "(ba) the institution's competent authority has determined, after consultation with the relevant central bank, the date when the exceptional circumstances are deemed to have started and publicly announced that date. The date shall be set at the end of a quarter."
Amendment 58 #
Proposal for a regulation
Article 1 – paragraph 1 – point 1 - point (b)
Article 1 – paragraph 1 – point 1 - point (b)
Regulation (EU) No 575/2013
Article 429a – paragraph 7
Article 429a – paragraph 7
EMLR = the institution's total exposure measure as defined in Article 429(4), including the exposures excluded in accordance with point (n) of paragraph 1 of this Article, on the day of the public declarationte referred to in point (ac) of paragraph 5 of this Article; and
Amendment 59 #
Proposal for a regulation
Article 1 – paragraph 1 – point 1 - point (b)
Article 1 – paragraph 1 – point 1 - point (b)
CB = the totalaverage value of the institution’s exposures to its central bank that are eligible to be exclud, calculated over the full reserve maintenance period of the central bank just preced in accordance withg the date referred to in point (nc) of paragraph 15, on the day of the public declaration referred to inthat are eligible to be excluded in accordance with point (an) of paragraph 51.;
Amendment 102 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3 a (new)
Article 1 – paragraph 1 – point 3 a (new)
Regulation (EU) No 575/2013
Article 500 b (new)
Article 500 b (new)
Amendment 103 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3 b (new)
Article 1 – paragraph 1 – point 3 b (new)
Regulation (EU) No 575/2013
Article 500 c (new)
Article 500 c (new)
(3 b) the following article is inserted: "Article 500c Temporary exclusion of certain exposures to central banks from the total exposure measure in view of the COVID-19 pandemic 1. By way of derogation from Article 429(4), until 27 June 2021, an institution may exclude from its total exposure measure the following exposures to the institution's central bank, subject to the conditions set out in paragraphs 2 and 3: (a) coins and banknotes constituting legal currency in the jurisdiction of the central bank; (b) assets representing claims on the central bank, including reserves held at the central bank. The amount excluded by the institution cannot exceed the average amount of the exposures listed in points (a) and (b) of the first subparagraph over the most recent full reserve maintenance period of the institution’s central bank. 2. An institution may exclude the exposures listed in paragraph 1 where the institution's competent authority has determined, after consultation with the relevant central bank, and publicly declared that exceptional circumstances exist that warrant the exclusion in order to facilitate the implementation of monetary policies. 3. The exposures to be excluded under paragraph 1 shall meet both of the following conditions: (a) they are denominated in the same currency as the deposits taken by the institution; (b) their average maturity does not significantly exceed the average maturity of the deposits taken by the institution. 4. An institution that excludes from its total exposure measure exposures to its central bank in accordance with paragraph 1 shall also disclose the leverage ratio it would have if it did not exclude those exposures."
Amendment 104 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3 c (new)
Article 1 – paragraph 1 – point 3 c (new)
Regulation (EU) No 575/2013
Article 500 d (new)
Article 500 d (new)
(3 c) the following article is inserted: "Article 500d Temporary netting of regular-way purchases and sales awaiting settlement in view of the COVID-19 pandemic 1. By way of derogation from Article 429, until 27 June 2021, institutions shall treat cash related to regular-way sales and securities related to regular-way purchases which remain on the balance sheet until the settlement date as assets in accordance with point (a) of Article 429(4). 2. Institutions that, in accordance with the applicable accounting framework, apply trade date accounting to regular-way purchases and sales which are awaiting settlement shall reverse out any offsetting between cash receivables for regular-way sales awaiting settlement and cash payables for regular-way purchase awaiting settlement allowed under that framework. After institutions have reversed out the accounting offsetting, they may offset between those cash receivables and cash payables where both the related regular-way sales and purchases are settled on a delivery-versus- payment basis. 3. Institutions that, in accordance with the applicable accounting framework, apply settlement date accounting to regular-way purchases and sales which are awaiting settlement shall include in the total exposure measure the full nominal value of commitments to pay related to regular-way purchases. Institutions may offset the full nominal value of the commitments to pay related to regular-way purchases by the full nominal value of cash receivables related to regular-way sales awaiting settlement only where both of the following conditions are met: (a) both the regular-way purchases and sales are settled on a delivery-versus- payment basis; (b) the financial assets bought and sold that are associated with cash payables and receivables are fair valued through profit and loss and included in the institution's trading book."