Activities of Othmar KARAS related to 2023/0113(COD)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council amending Directive 2014/59/EU and Regulation (EU) No 806/2014 as regards certain aspects of the minimum requirement for own funds and eligible liabilities
Amendments (16)
Amendment 22 #
Proposal for a directive
Recital 5
Recital 5
(5) To ensure that the possibility to comply with MREL on a consolidated basis is available only in the relevant cases identified in the review of the Commission and does not lead to a shortage of internal MREL eligible resources across the resolution group, the powerresolution authority should allow to set the internal MREL on a consolidated basis for intermediate entities should be a discretionary power of the resolution authority and should be subject to certain conditif certain conditions are met, unless this would impair financial stability or risk potential contagion to the financial system in the Unions. The intermediate entity should be the only direct subsidiary, that is an institution or an entity, of a resolution entity which is a parent Union parent financial holding company or a Union parent mixed financial holding company, is established in the same Member State and is part of the same resolution group. Alternatively, the intermediate entity concerned should comply with the additional own funds requirement or with the combined buffer requirement on the basis of its consolidated or individual situation. In both cases, however, compliance with the internal MREL on a consolidated basis should not, in the assessment of the resolution authority, negatively affect in a significant and material way the resolvability of the resolution group concerned, nor the application by the resolution authority of the power to write down or convert relevant capital instruments and eligible liabilities of the intermediate entity concerned or of other entities in its resolution group.
Amendment 29 #
Proposal for a directive
Recital 8
Recital 8
(8) Where the resolution authority considers that an entity that is part of a resolution group qualifies as a liquidation entity, intermediate entities should not be required to deduct from their internal MREL capacity their holdings of own funds or other liabilities that would meet the conditions for compliance with the internal MREL and that are issued by liquidation entities. In such a case, the liquidation entity is no longer required to comply with the MREL, and therefore there is no indirect subscription of internal MREL eligible resources through the chain formed by the resolution entity, the intermediate entity and the liquidation entity. In case of failure, the resolution strategy does not envisage that the liquidation entity would be supported by the resolution entity. That means that the upstreaming of losses from the liquidation entity to the resolution entity, via the intermediate entity, would not be expected, and neither would the downstreaming of capital in the opposite direction. That adjustment to the scope of the holdings to be deducted in the context of the indirect subscription of internal MREL eligible resources would thus not affect the prudential soundness of the framework. Not requiring intermediate entities, in some cases, to deduct from their internal MREL capacity their holdings of own funds, as opposed to only liabilities that do not qualify as own funds instruments, is a justified proportionate approach, as liquidation entities, in many cases, do not emit any liabilities.
Amendment 33 #
Proposal for a directive
Recital 13
Recital 13
(13) To ensure consistency, the national measures transposing the amendments to Directive 2014/59/EU and the amendments to Regulation (EU) No 806/2014 should apply from the same date. However, to ensure that the derogation in Regulation (EU) No 806/2014, Article 12g(1), subparagraph 4, would be effective immediately, Article 2, point (3), of this amending Directive should apply one day after the date of entry into force of this amending Directive.
Amendment 35 #
Proposal for a directive
Recital 14 a (new)
Recital 14 a (new)
(14 a) This amending Directive should respect the principles of the original review mandate to the Commission by the European Parliament and the Council to ensure proportionality and a level playing field between different types of banking group structures.
Amendment 38 #
Proposal for a directive
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Directive 2014/59/EU
Article 2 – 1 – point 83aa
Article 2 – 1 – point 83aa
(83aa) ‘liquidation entity’ means a legal person established in the Union in respect of which the group resolution plan or, for entities that are not part of a group, the resolution plan, provides that the entity is to be wound up in an orderly manner in accordance with the applicable national law;under normal insolvency proceedings or it does not envisage the exercise of the write-down and conversion powers with respect to that entity.;
Amendment 46 #
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point b
Article 1 – paragraph 1 – point 2 – point b
Directive 2014/59/EU
Article 45c – paragraph 2a – subparagraph 4
Article 45c – paragraph 2a – subparagraph 4
Holdings of own funds instruments or holdings of liabilities issued by subsidiaries which are liquidation entities for which the resolution authority has not determined the requirement referred to in Article 45(1) shall not be deducted under Article 72e(5) of Regulation (EU) No 575/2013.;
Amendment 47 #
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point a
Article 1 – paragraph 1 – point 3 – point a
Directive 2014/59/EU
Article 45f – paragraph 1 – subparagraph 3a – introductory part
Article 45f – paragraph 1 – subparagraph 3a – introductory part
By way of derogation from the first and second subparagraphs, resolution authorities may decide toshall determine the requirement laid down in Article 45c on a consolidated basis for a subsidiary as referred to in this paragraph where all of the following conditions are met, unless this impairs financial stability or risks potential contagion to the financial system in the Union:
Amendment 53 #
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point a
Article 1 – paragraph 1 – point 3 – point a
Directive 2014/59/EU
Article 45f – paragraph 1 – subparagraph 3a – point a – point ii
Article 45f – paragraph 1 – subparagraph 3a – point a – point ii
(ii) the subsidiary is subject to the requirement referred to in Article 104a of Directive 2013/36/EU or to the combined buffer requirement on a consolidatedn a consolidated or on an individual basis;
Amendment 59 #
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point a
Article 1 – paragraph 1 – point 3 – point a
Directive 2014/59/EU
Article 45f – paragraph 1 – subparagraph 3a – point b
Article 45f – paragraph 1 – subparagraph 3a – point b
(b) compliance with the requirement laid down in Article 45c on a consolidated basis does not negatively affect in a significant and material way the resolvability of the resolution group, or the write down or conversion, in accordance with Article 59, of relevant capital instruments and eligible liabilities of the subsidiary concerned or of other entities in the resolution group.;
Amendment 65 #
Proposal for a directive
Article 2 – paragraph 1 – point 1
Article 2 – paragraph 1 – point 1
Regulation (EU) No 806/2014
Article 3 – paragraph 1 – point 24aa
Article 3 – paragraph 1 – point 24aa
(24aa) ‘liquidation entity’ means a legal person established in a participating Member State in respect of which the group resolution plan or, for entities that are not part of a group, the resolution plan, provides that the entity is to be wound up in an orderly manner in accordance with the applicable national law;under normal insolvency proceedings or it does not envisage the exercise of the write-down and conversion powers with respect to that entity.;
Amendment 71 #
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point b
Article 2 – paragraph 1 – point 2 – point b
Regulation (EU) No 806/2014
Article 12d – paragraph 2a – subparagraph 4
Article 12d – paragraph 2a – subparagraph 4
Holdings of own funds instruments or holdings of liabilities issued by subsidiaries which are liquidation entities for which the resolution authority has not determined the requirement referred to in Article 12a(1) shall not be deducted under Article 72e(5) of Regulation (EU) No 575/2013.;
Amendment 72 #
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point a
Article 2 – paragraph 1 – point 3 – point a
Regulation (EU) No 806/2014
Article 12g – paragraph 1 – subparagraph 3a – introductory part
Article 12g – paragraph 1 – subparagraph 3a – introductory part
By way of derogation from the first and second subparagraphs, the Board mayshall decide to determine the requirement laid down in Article 12d on a consolidated basis for a subsidiary as referred to in this paragraph where all of the following conditions are met, unless this impairs financial stability or risks potential contagion to the financial system in the Union.:
Amendment 76 #
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point a
Article 2 – paragraph 1 – point 3 – point a
Regulation (EU) No 806/2014
Article 12g – paragraph 1 – subparagraph 3a – point a – point ii
Article 12g – paragraph 1 – subparagraph 3a – point a – point ii
(ii) the subsidiary is subject to the requirement referred to in Article 104a of Directive 2013/36/EU or to the combined buffer requirement on a consolidatedn a consolidated or on an individual basis;
Amendment 81 #
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point a
Article 2 – paragraph 1 – point 3 – point a
Regulation (EU) No 806/2014
Article 12g – paragraph 1 – subparagraph 3a – point b
Article 12g – paragraph 1 – subparagraph 3a – point b
(b) compliance with the requirement laid down in Article 12d on a consolidated basis does not negatively affect in a significant and material way the resolvability of the resolution group, or the write down or conversion, in accordance with Article 21, of relevant capital instruments and eligible liabilities of the institution or subsidiary concerned or of other entities in the resolution group.;
Amendment 86 #
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point b
Article 2 – paragraph 1 – point 3 – point b
Regulation (EU) No 806/2014
Article 12g – paragraph 2a – subparagraph 2 – introductory part
Article 12g – paragraph 2a – subparagraph 2 – introductory part
The liabilities referred to in the first subparagraph, points (a) and (b), shall not exceed the amount determined by subtracting from the amount of the requirement referred to in Article 4512(1) applicable to the subsidiary included in the consolidated the sum of all of the following:
Amendment 87 #
Proposal for a directive
Article 4 – paragraph 2
Article 4 – paragraph 2
Article 2, points (1) and (2), shall apply from … [OP please insert the date = 1 day after the transposition date of this amending Directive]. Article 2, point (3), shall apply from … [OP please insert the date = 1 day after entry into force of this amending Directive ]