BETA

60 Amendments of Raffaele FITTO related to 2021/0342(COD)

Proposal for a regulation
Recital 46

(46) However, the actual CVA risk of the exempted transactions may be a source of significant risk for banks applying those exemptions; if those risks materialise, the banks concerned could suffer significant losses. As EBA highlighted in their report on CVA from February 2015, the CVA risks of the exempted transactions raise prudential concerns that are not being addressed under CRR. To help supervisors monitor the CVA risk arising from the exempted transactions, institutions should report the calculation of capital requirements for CVA risks of the exempted transactions that would be required if those transactions were not exempted. In addition, EBA should develop guidelines to help supervisors identify excessive CVA risk and to improve the harmonisation of supervisory actions in this area across the EU.deleted

2022/08/11
Committee: ECON

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

Regulation (EU) No 575/2013
Article 5 – point 9 – subparagraph 2 – point d

(d) ~~contractual arrangements where the institution is required to assess the creditworthiness of the client immediately prior to deciding on the execution of each drawdown~~the decision of the institution on the execution of each drawdown is conditional upon assessment of the creditworthiness of the client;

2022/08/11
Committee: ECON

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

Regulation (EU) No 575/2013
Article 5 – point 9 – subparagraph 2 – point e

(e) contractual arrangements that are offered to a corporate entity, including an SME, ~~that is~~considered that those counterparties are closely monitored on an ongoing basis.

2022/08/11
Committee: ECON

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

Regulation (EU) No 575/2013
Article 5 – point 10

(10) ‘unconditionally cancellable commitment’ means any commitment the terms of which permit the institution to cancel that commitment, to the full extent allowable under consumer protection and related legislation where applicable, at any time without prior notice to the obligor or that effectively provide for automatic cancellation due to deterioration in a borrower's creditworthiness.’;

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point b

(b) in p~~aragraph 1, in point (k), point~~oint (k), the following point is added: (vi) ~~is deleted;~~CIU exposures inaccordance with Article 132(2).

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

Regulation (EU) No 575/2013
Article 47c – paragraph 4 – introductory part

(11 a) Article 47(4), the introductory part is replaced by the following: 4. By way of derogation from paragraph 3 ~~of this Article~~, the following factors shall apply to the part of the non-performing exposure guaranteed or insured by an official export credit agency or guaranteed or counter-guaranteed by an eligible protection provider referred to in points (a) to (e) of Article 201(1), unsecured exposures to which would be assigned a risk weight of 0 % under Chapter 2 of Title II of Part Three:

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

Regulation (EU) No 575/2013
Article 47c – paragraph 6 – subparagraphs 2 a (new) and 2 b (new)

(11 a) in Article 47c(6) the following subparagraphs are added: 4. By way of derogation from paragraph 3, the following factors shall apply to the part of the non-performing exposure guaranteed or insured by an official export credit agency: (a) 0 for the secured part of the non- performing exposure to be applied during the period between one year and seven years following its classification as non- performing; and (b) 1 for the secured part of the non- performing exposure to be applied as of the first day of the eighth year following its classification as non-performing. By way of derogation from paragraph 2 , when a non-performing exposure is purchased by a financial institution i) from another financial institution which has originated the credit, ii) at a price which is at least 50% lower than the total amount owed by the debtor iii) before the third year following its classification as non-performing, then the factors foreseen by paragraph 2 shall re-apply from the beginning, as if the exposure would have been just classified as non-performing. By way of derogation from paragraph 3, when a non-performing exposure is purchased by a financial institution, i) from another financial institution, ii) at a price which is at least 50% lower than the total amount owed by the debtor, iii) before the seventh year following its classification of non performing, for non- performing exposures secured by other funded or unfunded credit protection, or before the nine th year following its classification as non performing, for non- performing exposure secured by immovable property, then the factors foreseen by paragraph 3 shall re-apply from the beginning, as if the exposure would have been just classified as non- performing.

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – introductory part

(a) the Common Equity Tier 1 capital of the subsidiary minus ~~the lower of the following~~:

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i

~~(i) the amount of Common Equity Tier 1 capital of that subsidiary required to meet the following: — institution, the sum of the requirement laid down in Article 92(1), point (a), t~~deleted whe requirements referred to in Articles 458 and 459 , the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable; — investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries, insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable; the subsidiary is an where the subsidiary is an

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i – indent 1

— where the subsidiary is an institution, the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459 , the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable;deleted

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i – indent 2

— where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries, insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable;deleted

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – 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 Article 92(1), point (a), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements;

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – introductory part

(a) the Tier 1 capital of the subsidiary minus ~~the lower of the following:~~

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i

~~(i) the amount of Tier 1 capital of the subsidiary required to meet the following: — institution, the sum of the requirement laid down in Article 92(1), point (b), t~~deleted whe requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 Capital, as applicable; — investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital, as applicable; the subsidiary is an where the subsidiary is an

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i – indent 1

— where the subsidiary is an institution, the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 Capital, as applicable;deleted

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i – indent 2

— where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital, as applicable;deleted

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – 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 Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments; in case of third countries it shall be measured based on local own funds requirements;

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 21

Regulation (EU) No 575/2013
Article 88b – paragraph 3

~~For the purposes of this Title II, the terms ‘investment firm’ and ‘institution’ shall be understood to include also undertakings established in~~3. Member States shall ensure that institutions draw up, maintain and update individual statements setting out the roles of key function holders, and the persons who are part of the governance arrangements as referred to in Article74 (1) and their~~d countries, which, were they established in the Union, would fall under the definitions of those terms in Article 4(1), points (2) and (3).;~~ duties approved by the management body. Member States shall ensure that the statements of roles are made available and communicated in a timely manner, upon request, to the competent authorities.

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a – subparagraph 5a (new)

By way of derogation from the first subparagraph, institutions which deduct an IRB shortfall amount from their Common Equity Tier 1 in accordance with Article 36 (1), point (d) shall apply the following formula: TREA= max {U-TREA; (x*S-TREA)– (SF*12,5)} where SF = the absolute value of the IRB shortfall deducted in accordance with Article 36(1), point (d)

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 575/2013
Article 111– paragraph 4

4. For contractual arrangements offered by an institution, but not yet accepted by the client, that would become commitments if accepted by the client, and contractual arrangements that would qualify as commitments but meet the conditions for not being treated as commitments, the percentage applicable to that type of contractual arrangement shall be that provided for in accordance with paragraph 2.deleted

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 40 – point b a (new)

Regulation (EU) No 575/2013
Article 122 – paragraph 2a (new)

(b a) the following paragraph is added: 2a. By way of derogation from paragraph 2, exposures under the standardised approach due to not-real estate leases granted by an institution to corporate borrowers against the payment of periodic contractual payments shall be assigned a risk weight of 70%, provided that all the following conditions are met: a) the lessor performs a complete credit risk assessment process comprising lessees, subject of leases and their relative suppliers; b) the lessor retains the legal ownership of the leased asset throughout the life of the contract; c) the lessor has the right to carry out on- site inspections/access; d) the leased assets are instrumental to the exercise of the borrower’s economic activities.

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) No 575/2013
Article 123 – paragraph 4 a (new)

4 a. By way of derogation from paragraph 3, exposures under the standardised approach due to not-real estate leases granted by an institution to retail borrowers against the payment of periodic contractual payments shall be assigned a risk weight of 55%, provided that all the following conditions are met: a) the lessor performs a complete credit risk assessment process comprising lessees, subject of leases and their relative suppliers; b) the lessor retains the legal ownership of the leased asset throughout the life of the contract; c) the lessor has the right to carry out on- site inspections/access; d) the leased assets are instrumental to the exercise of the borrower’s economic activities.

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 2 – point a – point i

(i) the ~~immovable property securing the exposure is the obligor’s primary residence~~exposure is to an individual and secured by a residential property, either where the immovable property as a whole constitutes a single housing unit or where the immovable property securing the exposure is a housing unit that is a separated part within an immovable property;

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 44

REGULATION (EU) No 575/2013
Article 124 – paragraph 2 – point c – point ii a (new)

(ii a) exposures related to property leasing transactions concerning offices or other commercial premises under which the institution is the lessor and the lessee has an option to purchase shall be assigned a risk weight of 50% provided that the exposure of the institution is fully and completely secured by its ownership of the property and the commercial immovable property is instrumental to the lessee’s economic activities.

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 47

REGULATION (EU) No 575/2013
Article 126a – paragraph 2 – introductory part

2. ADC exposures to residential or commercial property, however, may be risk weighted at 100 %, provided that, where applicable, the institution applies sound origination and monitoring standards which meet the requirements of Articles 74 and 79 of Directive 2013/36/EU and where at least one of the following conditions is met:

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 51 a (new)Regulation (EU) 575/2013

Article 132 – paragraph 2 – subparagraph 2

(51 a)in Article 132(2), subparagraph 2 is replaced by the following: Subject to Article 132b(2), institutions that do not apply the look-through approach or the mandate-based approach shall assign a risk weight of 1 250 % (‘fall-back approach’) to their exposures in the form of units or shares in a CIU. As an alternative to applying a 1 250 % risk weight, institutions may deduct those amounts from Common Equity Tier 1 items in accordance with point (k) of Article 36(1)

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 52

(iv) the holder of the instrument has exercised the option to require that the obligation be settled in equity shares, unless one of the following conditions is met:

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) No 575/2013
Article 133 – paragraph 3

3. Equity exposures, other than those referred to in paragraphs 3a and 4 to 7, shall be assigned a risk weight of 250 %, unless those exposures are required to be deducted or risk-weighted in accordance with Part Two.

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 52

REGULATION (EU) No 575/2013
Article 133 – paragraph 3 a (new)

3a. Exposures to equity listed on regulated markets shall be assigned a risk weight of 100%. Private equity exposures in sufficiently diversified portfolios shall be assigned a risk weight of 190% unless those exposures are required to be deducted.

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) No 575/2013
Article 133 – paragraph 6

6. Equity exposures to central banks shall be assigned a risk weight of 100 %.

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 53 a (new)Regulation (EU) No 575/201 Art 134 – paragraph 8 a (new)

8a Securities financing transactions exposures risk weights shall be capped at 50 % and 20% where the exposures residual maturities are respectively one year or less and 3 months or less.

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 63 – point a

Regulation (EU) No 575/2013
Article 150 – paragraph 1 – subparagraph 1 - point c a (new) and c b (new)

(c a) exposures to central governments and central banks of the Member States an their regional governments, local authorities, administrative bodies and public sector entities provided that: i) there is no difference in risk between the exposures to that central government an central bank and those other exposures because of specific public arrangements; and ii) exposures to central governments and central banks are assigned a 0% risk weight under Article 144 (2) or (4); cb) exposures of an institution to a counterparty which is its parent undertaking, its subsidiary or a subsidiary of its parent undertaking provided that the counterparty is an institution or a financial holding company, mixed financial holding company, financial institution, asset management company or ancillary services undertaking subject to appropriate prudential requirements or an undertaking linked by a relationship within the meaning of Article 12 (1) of directive 83/349/EEC;

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 89 – point c a (new)

Regulation (EU) No 575/2013
Article 178 – paragraph 6 a (new)

6a. EBA shall develop draft regulatory technical standards to specify the definition of diminished financial obligation in case of distressed restructuring for the purposes of paragraph 3(d). EBA shall submit those draf tregulatory technical standards to the Commission by 31 December 2023. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No1093/2010

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 197 – paragraph 6 subparagraph 1

(98 a) in Article 197(6), the first subparagraph is replaced by the following: For the purposes of paragraph 5, where a CIU (‘the original CIU’) or any of its underlying CIUs are not limited to investing in instruments that are eligible under paragraphs 1 and 4, where the institutions can apply the look- through method, they may use units or shares in that CIU as collateral up to the amount equal to the value of the underlying instruments, calculated following the existing provisions of the relevant European and national regulations, that are eligible for recognition under paragraphs 1 and 4;· where institutions can apply the mandate- based approach, they may use units or shares in that CIU as collateral to an amount equal to the value of the eligible assets held by that CIU under the assumption that that CIU or any of its underlying CIUs have invested in non- eligible assets to the maximum extent allowed under their respective mandates.

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 198

(98 b) Article 198 is replaced by the following: Article 198 Additional eligibility of collateral under the Financial Collateral Comprehensive Method 1. In addition to the collateral established in Article 197, where an institution uses the Financial Collateral Comprehensive Method set out in Article 223, that institution may use the following items as eligible collateral: (a) equities or convertible bonds not included in a main index but traded on a recognised exchange; (b) units or shares in CIUs where both the following conditions are met: (i) the units or shares have a daily public price quote; (ii) the CIU is ~~limited to~~ investing in instruments that are eligible for recognition under Article 197(1) and (4) and the items mentioned in point (a) of this subparagraph. ~~In the case a CIU invests in units or shares of another CIU, conditions (a) and (b) of this paragraph equally apply to any such underlying CIU.~~ The use by a CIU of derivative instruments to hedge permitted investments shall not prevent units or shares in that undertaking from being eligible as collateral. 2. Where the CIU or any underlying CIU are not limited to investing in instruments that are eligible for recognition under Article 197(1) and (4) and the items mentioned in point (a) of paragraph 1 of this Article, where institutions can apply the look- through method, they may use units or shares in that CIU as collateral up to the amount equal to the value of the underlying instruments, calculated following the existing provisions of the relevant European and national regulations, that are eligible for recognition under paragraphs 1 and 4 and the items mentioned in point (a) of paragraph 1 of this Article;· where institutions can apply the mandate- based approach, they may use units or shares in that CIU as collateral to an amount equal to the value of the eligible assets held by that CIU under the assumption that that CIU or any of its underlying CIUs have invested in non- eligible assets to the maximum extent allowed under their respective mandates. Where non-eligible assets can have a negative value due to liabilities or contingent liabilities resulting from ownership, institutions shall do both of the following: (a) calculate the total value of the non- eligible assets; (b) where the amount obtained under point (a) is negative, subtract the absolute value of that amount from the total value of the eligible assets.

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 229 – paragraph 1 – point b – point ii

(ii) the value is adjusted to take into account the potential for the ~~current market price to be significantly above the value that would be sustainable over the life of the loan~~market value or mortgage lending value to be significantly above the current market price;

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 159 – point a – point -i (new)

Regulation (EU) 575/2013
Article 325bp – paragraph 5 – point a

(a) the default probabilities shall be floored at 0,03 %; for exposures other than those that would receive a 0 % risk-weight under the Standardised Approach for credit risk in accordance with Chapter 2 of Title II

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 159 – point a – point -i (new)

Regulation (EU) No 575/2013
Article 325bp – paragraph 5 – point a

"(a) the default probabilities shall be floored at 0,03 % for exposures othert han those that would receive a 0 % risk-weight under the Standardised Approach for credit risk in accordance with Chapter 2 of Title II; Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02013R0575- 20220410&qid=1657284993452&from=EN)

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 166 – point b

Regulation (EU) No 575/2013
Article 382 – paragraph 4b

4b. Institutions shall report to their competent authorities the results of the calculations of the own funds requirements for CVA risk for all the transactions referred to in paragraph 4. For the purposes of that reporting requirement, institutions shall calculate the own funds requirements for CVA risk using the relevant approaches set out in Article 382a(1), that they would have used to satisfy an own funds requirement for CVA risk if those transactions were not excluded from the scope in accordance with paragraph 4.deleted

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 1

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 %.

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 2

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.deleted

2022/08/18
Committee: ECON

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

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

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

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

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 1 – introductory part

5. ~~By way of derogation from Article 92(5)(a), point (i), Member States may, allow p~~Parent institutions, parent financial holding companies or parent mixed financial holding companies, subsidiary institutions stand-alone institutions in the EU or stand-alone subsidiary institutions in Member States are allowed to assign the following risk weights provided that all the conditions in the second subparagraph are met.

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 1 – point a

(a) ~~until 31 December 2032,~~ a risk weight of 10 % to the part of the exposures secured by mortgages on residential property up to 55 % of the property value remaining after any senior or pari passu ranking liens not held by the institution have been deducted,

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 1 – point b

(b) ~~until 31 December 2029,~~ a risk weight of 45% to any remaining part of the exposures secured by mortgages on residential property up to 80 % of the property value remaining after any senior or pari passu ranking liens not held by the institution have been deducted, provided that the adjustment to own funds requirements for credit risk referred to in Article 501 is not applied.

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 2 – point a

(a) the qualifying exposures are located in ~~the~~a Member State ~~that has exercised the discretion~~;

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 3 – introductory part

Where ~~the discretion referred to in the first subparagraph has been exercised and~~ all the associated conditions in the second subparagraph are met, institutions may assign the following risk weights to the remaining part of the exposures referred to in the second subparagraph, point (b)~~, until 31 December 2032~~:

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 3 – point c

(c) 67,5 % ~~during the period from 1 January 2032 to 31 December~~from 1 January 2032.

2022/08/18
Committee: ECON

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

Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 4

When Member States exercise that discretion, they shall notify EBA and substantiate their decision. Competent authorities shall notify the details of all the verifications referred to in the first subparagraph, point (c), to EBA.deleted

2022/08/18
Committee: ECON

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

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

~~EBA shall monitor the use of the transitional treatment in the first subparagraph and report to the Commission by 31 December 2028 on the appropriateness of the associated risk weights.~~deleted

2022/08/18
Committee: ECON

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

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

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

Regulation (EU) No 575/2013
Article 495a – paragraphs 3 a (new)

3a. By way of derogation from Article 471, the amount of equity exposures currently held in insurance undertakings, reinsurance undertakings and insurance holding companies not deducted from own funds in accordance with paragraph 3 of this Article, where such holdings do not exceed 15% of the Common Equity Tier 1 instrument issued by that insurance entity shall be risk weighted at 250%.

2022/08/18
Committee: ECON

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

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

This also applies to all the items listed in bucket 5 of Annex I.

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 199 a (new)

Regulation (EU) No 575/2013
Article 500 – paragraph 1

(199 a)Article 500(1) is replaced by the following: 1. By way of derogation from point (a) of Article 181(1), an institution may adjust its LGD estimates by partly or fully offsetting the effect of massive disposals of defaulted exposures on realised LGDs up to the difference between the average estimated LGDs for comparable exposures in default that have not been finally liquidated and the average realised LGDs including on the basis of the losses realised due to massive disposals, as soon as all the following conditions are met: (a) the institution has notified the competent authority of a plan providing the scale, composition and the dates of the disposals of defaulted exposures; (b) the dates of the disposals of defaulted exposures are after 23 November 2016 but not later than ~~28 June~~31 December 2022; 4; (c) the cumulative amount of defaulted exposures disposed of since the date of the first disposal in accordance with the plan referred to in point (a) has surpassed 20 % of the ~~outstanding~~cumulative amount of all defaulted exposures as of the date of the first disposal referred to in points (a) and (b). The adjustment referred to in the first subparagraph may only be carried out until ~~28 June~~31 December 20224 and its effects may last for as long as the corresponding exposures are included in the institution's own LGD estimates. ~~(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02013R0575-20220410)~~Or. en

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 201 – point a

Regulation (EU) No 575/2013
Article 501a – paragraph 1 – point a

‘(a) the exposure is ~~assigned to~~included either in the corporate exposure class ~~referred to ei~~or in ther in ~~Article 112, point (g), or in Article 147(2), point (c)~~frastructure finance an object finance exposures class, with the exclusion of exposures in default;’

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 201 a (new)

Regulation (EU) No 575/2013
Article 501aa (new)

(201~~) Article 501a(1) is amended as follows:~~ a)the following article is inserted: "Article 501aa Sustainability Adjustment Factor for certain energy efficient mortgages 1. For exposures related to energy efficient mortgages as defined by point 2, the capital requirement for credit risk calculated according to Title II of Part Three shall be multiplied by a Sustainability Adjustment Factor (SAF) for mortgages of 0,80. 2. For the purpose of this Article, energy efficient mortgages are those that finance the renovation of buildings in order to allow them to increase at least two classes of Energy Performance in Energy Performance Certificate (EPC), or the construction of new buildings or acquisition and/or ownership of buildings with at least the class C of EPC. 3. If other supporting factors are envisaged for the exposures in paragraph 1 in this Regulation, the SAF should be added to those additional supporting factors prior to the calculation of the capital requirements for credit risk. 4. Institutions shall report to competent authorities every 12months on the total amount of exposures qualified for the SAF and the related total capital requirements for credit risk. 5. The Commission shall by xxxxxx report on the impact of the SAF for qualified energy efficient mortgages and, if it is justified from a prudential perspective, if it should be kept at the level in point 1 or should be increased and shall submit that report to the European Parliament and to the Council together with a legislative proposal, if appropriate."

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 205

Regulation (EU) No 575/2013
Article 519d – paragraph 1 – introductory part

~~By [OP please insert the date = 60 months after date of application of Part Three, Title III], the~~ EBA shall report to the Commission on all of the following:

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 205

Regulation (EU) No 575/2013
Article 519d – paragraph 2 a (new)

In case admissible insurance contracts should be identified by EBA, with standardized wording pre-cleared by EBA by means of and ad hoc RTS (Regulatory Technical Standard), institutions can apply the following. NET BIC = BIC × (1−insurance benefit) where: insurance benefit = min (20%, ∑𝛿 i) and for each i policy 𝛿i=[(𝐻i∙𝐿i)/BIC] × 𝑓(𝐷i) * Wi • the policy limit (“L”); • the policy deductible (“D”); • an adjustment depending on the chosen deductible (“𝑓(𝐷)”), ensuring the benefit decreases as the deductible increases; • a standard haircut (“H”), to be determined by the competent Supervisor depending on the probability of each Insurer’s default or potential delay in payments; • the policy percentage coverage (“W”) related to the extent of the coverage, excluding overlapping with other policies.

2022/08/18
Committee: ECON

Proposal for a regulation
Annex – table– column 2 – row 8

Regulation (EU) No 575/201
Annex I

• Performance bonds, bid bonds, warranties ~~and standby letters of credit related to particular transactions and similar transaction-related contingent items~~not related to trade finance;

2022/08/18
Committee: ECON

Proposal for a regulation
Annex – table – column 2 – row 13 a (new)

Regulation (EU) No 575/2013
Annex I

 Performance bonds, bid bonds and warranties related to trade finance, and standby letters of credit related to particular transactions and similar transaction-related contingent items;

2022/08/18
Committee: ECON