148 Amendments of Philippe LAMBERTS related to 2011/0202(COD)
Amendment 142 #
Proposal for a regulation
Recital 4 a (new)
Recital 4 a (new)
Amendment 143 #
Proposal for a regulation
Recital 4 b (new)
Recital 4 b (new)
(4b) Domestic Systemically Important Institutions (D-SIFIs) established in the Union should be subjected to the same extra requirements as G-SIFIs s after endorsement of the future criteria and the list
Amendment 153 #
Proposal for a regulation
Recital 15 a (new)
Recital 15 a (new)
(15a) Given the inevitable extension of powers and tasks for EBA foreseen by this Regulation, the European Parliament, the Council and the Commission should see to it that adequate human and financial resources are made available without delay
Amendment 156 #
Proposal for a regulation
Recital 16 a (new)
Recital 16 a (new)
(16a) 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.
Amendment 184 #
Proposal for a regulation
Recital 68
Recital 68
(68) A binding but differentiated leverage ratio is a newn essential 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 without which financial risk in the system is difficult to contain.
Amendment 190 #
Proposal for a regulation
Recital 69 a (new)
Recital 69 a (new)
(69a) The sovereign debt crisis and the statement of 26 October 2011 of the Heads of State or Government of Member States whose currency is the euro have demonstrated that a 0 % risk weight for government bonds no longer corresponds with economic reality. The Commission should submit a report to the European Parliament and the Council proposing options to adjust that risk weight accordingly as soon as possible, while taking into account potentially destabilising effects of tabling such proposals during periods of market stress. While this report is still pending, transitional arrangements should be implemented, as set out in Article 389, as a contribution to enhance the stability of the financial system
Amendment 201 #
Proposal for a regulation
Recital 76
Recital 76
(76) Apart from short-term liquidity needs, credit institutions and investment firms should 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 traInstitutions that rely on volatile, short-term funding to fund assets other than those of extremely high quality and liquidity, particularly where such funding is provided by financial institutions not subject to the same prudential standards, have proven to be very fragile in the face of sustained market stress. Furthermore, events since 2008 have shown that regulators and institutions alike have greatly underestimated the potential duration of severe systemic liquidity stress. The combination of weak business models and prolonged stress has been a major contributing factor to disorderly deleveraging and the necessity for public sector intervention that has resulted in the cost of poor liquidity risk management being passed on to taxpayers and the broader economy. The structural fragility and pro-cyclicality inherent in the business models that proved most exposed to reduced market liquidity can only be mitigated by measures that ensure that institution period and will continue to review the implications of these standards fos maintain a level of stable funding adequate to the volume of assets that cannot be reasonably expected to be liquidated under a severe systemic or idiosyncratic stress of up to a year 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 proposals in order to introduce such a requirement by 2018. duration. It is therefore necessary to impose the same discipline on longer term funding adequacy as on capital adequacy and short term liquidity risk. The proposals made by the BCBS in December 2009 concerning a stable funding requirement metric provide a prudential tool for such discipline and should therefore be implemented as soon as possible. Supervisory disclosure of the required and available stable funding calculated and reporting according to an initial specification of the metric based on the BCBS work should begin immediately upon entry into force of this regulation on at least a quarterly basis. In order to enable markets to become familiar with the figures, and to impose market discipline pending the introduction of a minimum standard, after two years of such reporting institutions should be required publicly disclose information on the metric and its components, at level of granularity deemed appropriate by EBA. Within four years of the first supervisory disclosures of the metric, EBA should propose any changes to the design of metric necessary to improve its effectiveness as a measure of stable funding requirements in order for the Commission to be able to adopt the necessary delegated acts. By no later than 31 December 2018, a binding stable funding requirement should enter into force.
Amendment 212 #
Proposal for a regulation
Recital 87
Recital 87
(87) The Commission should also be empowered to adopt, by means of an urgency procedure, a temporaryn increase in the level of own funds, risk weights or any prudential requirements that is necessary to respond to market developments creating macro-prudential risks. 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 weektwo months. The Commission should state the reasons for the use of the urgency procedure. By the same way, pursuant to the principle of subsidiarity, when macro- prudential risks threaten financial stability at national level, national authorities should be equally empowered to impose the stricter prudential requirements, subject to an ex-post assessment at European level, with immediate ESRB involvement, and including the possibility by the Commission to order they Member State to abolish those measures, if it is assessed that the risks justifying the measures do not exist.
Amendment 222 #
Proposal for a regulation
Recital 91 a (new)
Recital 91 a (new)
(91a) The Commission is invited to assess by June 2013 the impact of a binding leverage ratio of 2% by January 2019 and of 3% by January 2021, specifically on institutions covered by this regulation, with a business model which is based on low risk activities and low profit margins.
Amendment 223 #
Proposal for a regulation
Recital 91 b (new)
Recital 91 b (new)
(91b) In reference to Article 345 TFEU, which states that the Treaties shall in no way prejudice the rules in Member States governing the system of property ownership, the provisions of this Regulation shall neither favour nor discriminate types of ownership, which are in the scope of this Regulation.
Amendment 224 #
Proposal for a regulation
Recital 91 c (new)
Recital 91 c (new)
(91c) Among financial instruments covered bonds have played an increasingly important role since the aftermath of the financial crisis. A financial institution, which issues this bond uses a certain ratio of its assets to cover these instruments. As a consequence, in the case of insolvency, assets linked in the aforementioned way to covered bonds are not available to cover the liabilities of the institution. This point is specifically relevant for a financial institution, which on the one hand issues covered bonds to a large extent and on the other hand takes in deposits. Facing solvency problems, this institutions will use a considerable part of their assets, most likely those of the highest value, to shield its covered bonds. Under such constraints, less assets will be left to cover the remaining liabilities, such as the deposits of these institutions. Usually external deposit guarantee schemes will be drawn in to cover the deposits of the bank in trouble. Likewise, the role of deposit guarantee schemes creates an incentive, especially for financial institutions issuing covered bonds, to use the best assets to cover these financial instruments and to transfer the risk related to liabilities in the form of deposits to the respective schemes. In order to avoid such actions, it is necessary to include a structure in the framework of CRD IV, which creates a disincentive for high issuance of covered bonds, specifically for institutions, which also take deposits. Therefore, financial institutions covered by this regulation and which also issue covered bonds and take in deposits should create an internal deposit reserve. This capital cushion must adequately reflect the ratio of covered bonds issued by a financial institution, which exceeds the threshold established through Article 124(5a) of this Regulation.
Amendment 226 #
Proposal for a regulation
Part 1 – article 1 – paragraph 1 a (new)
Part 1 – article 1 – paragraph 1 a (new)
Amendment 227 #
Proposal for a regulation
Part 1 – article 1 – paragraph 1 b (new)
Part 1 – article 1 – paragraph 1 b (new)
For the purpose of this Regulation and 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], Fundamental Banks shall be defined by a draft technical standard developed by EBA and adopted by the Commission taking into account at least the granularity and nature of the funding for investments (degree of stable deposits) and the nature of those investments (low trading activities, and limited use of derivates), making full use of the work of the FSB on differentiation. Institutions subject to directive/regulation may apply to EBA for the Fundamental Bank designation. Banks benefiting from this designation shall report quarterly to EBA. EBA shall specify the format and content of this report. In case of deviation from the indicators, EBA shall issue a warning, require corrective steps and set a date for compliance. In case of non compliance, EBA shall withdraw the designation and the bank shall cease to benefit from the lighter regime. Fundamental Banks is a designation that can only apply to the consolidating entity.
Amendment 233 #
Proposal for a regulation
Article 2 – title
Article 2 – title
Supervisory powers and mediation powers of EBA
Amendment 235 #
Proposal for a regulation
Article 2 – paragraph 1 a (new)
Article 2 – paragraph 1 a (new)
Article 19 of the Regulation (EU) No 1093/2010 of the European Parliament and of the Council establishing a European Supervisory Authority (European Banking Authority) relating to the settlement of disagreements between competent authorities in cross-border situations, setting out the powers of binding mediation, shall apply to all relevant articles of this Regulation
Amendment 237 #
Proposal for a regulation
Article 2 – paragraph 1 b (new)
Article 2 – paragraph 1 b (new)
Given the inevitable extension of powers and tasks for EBA foreseen by this regulation, EBA shall without delay submit a revised request concerning its annual and pluriannual budgets.
Amendment 299 #
Proposal for a regulation
Article 7 – paragraph 2 – subparagraph 3 a (new)
Article 7 – paragraph 2 – subparagraph 3 a (new)
Competent authorities may also apply paragraph 1 to institutions associated in a network and where in accordance with legal or statutory provisions a central or regional credit institution is responsible, under those provisions, for cash-clearing operations within the network, as mentioned in Article 389(2)(d) and where the central institution manages deposits and other funds from the members of the network, provided that the formal co- operation arrangements also include appropriate intra-network liquidity management.
Amendment 366 #
Proposal for a regulation
Article 24 – paragraph 4
Article 24 – paragraph 4
4. EBA shall draft regulatory technical standards to establish, maintain and publish a binding list of the forms of capital instrument insuitable for each Member State that qualify as Common Equity Tier 1 instruments. EBA shall establish and publish this list by 1 January 2013submit 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. Those technical standards have to be reviewed regularly and adjusted when necessary. Drafting the standards diversity within the banking system shall be taken into account by applying the principal of proportionality .
Amendment 375 #
Proposal for a regulation
Article 25 – paragraph 1 – point a
Article 25 – paragraph 1 – point a
(a) the institution is of a type that is defined under applicable national law and which competent authorities consider to qualify as a mutual, cooperative society or a similar institution or a credit institution which is a subsidiary of a mutual, co-operative society or similar institution, provided that, and for as long as, 100% of the ordinary shares in issue in the credit institution is held, directly or indirectly, by mutuals, co-operative societies or similar institutions or where applicable under national law all current and future obligations of the subsidiary are guaranteed by mutuals, cooperative societies or similar institutions, in each case for the purposes of this Part;
Amendment 418 #
Proposal for a regulation
Article 33 – paragraph 1 – point c
Article 33 – paragraph 1 – point c
(c) deferred tax assets that rely on future profitability, or whose monetization cannot be considered as certain;
Amendment 438 #
Proposal for a regulation
Article 45 – paragraph 1 – introductory part
Article 45 – paragraph 1 – introductory part
1. In making the deductions required pursuant to points (c) and (i) of Article 33(1), institutions shall not deduct the items listed in points (a) and (b) which in aggregate are equal to or less than 15 % of Common Equity Tier 1 capital are exempt from deductionfollowing items:
Amendment 439 #
Proposal for a regulation
Article 45 – paragraph 1 – point a
Article 45 – paragraph 1 – point a
Amendment 488 #
Proposal for a regulation
Article 49 – paragraph 1 – point n
Article 49 – paragraph 1 – point n
(n) the provisions governing the instruments require the principal amount of the instruments to be written down, or the instruments to be converted to Common Equity Tier 1 instruments, upon the occurrence of a trigger event and before any state aid, as defined by case law under Article 107 of the Treaty on the Functioning of the European Union, is granted to the institution concerned;
Amendment 501 #
Proposal for a regulation
Article 51 – paragraph 1 – point a – introductory part
Article 51 – paragraph 1 – point a – introductory part
(a) a trigger event occurs when the Common Equity Tier 1 capital ratiomarket value of equity of the institution referred to in point (a) of Article 87 falls below either of the following:
Amendment 502 #
Proposal for a regulation
Article 51 – paragraph 1 – point a – point i
Article 51 – paragraph 1 – point a – point i
(i) 5.125 %% of the value of assets, where the value of assets is determined in accordance with the principles laid down in Article 416 of this Regulation;
Amendment 503 #
Proposal for a regulation
Article 51 – paragraph 1 – point a – point ii
Article 51 – paragraph 1 – point a – point ii
(ii) a level higher than 5.125 % % of the value of assets, where determined by the institution and specified in the provisions governing the instrument;
Amendment 504 #
Proposal for a regulation
Article 51 – paragraph 1 – point a a (new)
Article 51 – paragraph 1 – point a a (new)
(aa) the instruments convert to common equity tier 1 instruments at par value
Amendment 510 #
Proposal for a regulation
Article 60 – paragraph 1 – point m a (new)
Article 60 – paragraph 1 – point m a (new)
(ma) the provisions governing the instruments require the principal amount of the instruments to be written down, or the instruments to be converted to Common Equity Tier 1 instruments, upon the occurrence of a trigger event and before any state aid, as defined by case law under Article 107 of the Treaty on the Functioning of the European Union, is granted to the institution concerned;
Amendment 512 #
Proposal for a regulation
Article 60 – paragraph 1 a (new)
Article 60 – paragraph 1 a (new)
EBA shall develop draft regulatory technical standards to specify elements referred to in points (b) and (c) of paragraph 2 of Article 49. 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 sub-paragraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 515 #
Proposal for a regulation
Article 75 – paragraph 4
Article 75 – paragraph 4
4. EBA shall provide technical advice to the Commission by 31 December 2013 on possible treatments of unrealised gains measured at fair value other than including them in Common Equity Tier 1 without adjustment. Such recommendations shall take into account relevant developments in international accounting standards and in international agreements on prudential standards for banks. Fundamental Banks shall not be obliged to use these international accounting standards or their EU transposition.
Amendment 518 #
Proposal for a regulation
Article 78 – paragraph 1 – subparagraph 1 – point d a (new)
Article 78 – paragraph 1 – subparagraph 1 – point d a (new)
(da) the special purpose entity provides publicly accessible information about the jurisdiction in which it is based, its annual accounts and the amount of taxes paid.
Amendment 571 #
Proposal for a regulation
Part 3 – Article 87 – paragraph 1 – point a
Part 3 – Article 87 – paragraph 1 – point a
(a) a Common Equity Tier 1 capital ratio of 4.59 %;
Amendment 573 #
Proposal for a regulation
Part 3 – Article 87 – paragraph 1 – point b
Part 3 – Article 87 – paragraph 1 – point b
(b) a Tier 1 capital ratio of 610,5 %;
Amendment 576 #
Proposal for a regulation
Part 3 – Article 87 – paragraph 1 – point c
Part 3 – Article 87 – paragraph 1 – point c
(c) a total capital ratio of 812,5 %.
Amendment 577 #
Proposal for a regulation
Part 3 – Article 87 – paragraph 1 a (new)
Part 3 – Article 87 – paragraph 1 a (new)
1 a. Fundamental Banks shall not apply the provisions laid down in paragraph 1, but comply with the following own funds requirements: (a) a Common Equity Tier 1 capital ratio of 4,5 %; (b) a Tier 1 capital ratio of 6%; (c) a total capital ratio of 8%;
Amendment 590 #
Proposal for a regulation
Article 95 – title
Article 95 – title
Reporting on own funds requirements and financial information
Amendment 591 #
Proposal for a regulation
Article 95 – paragraph 1 – subparagraph 1
Article 95 – paragraph 1 – subparagraph 1
Amendment 593 #
Proposal for a regulation
Article 95 – paragraph 1 – subparagraph 2
Article 95 – paragraph 1 – subparagraph 2
This reporting shall also include financial information drawn up in accordance with the accounting framework to which the institution is subject under Regulation (EC) No 1606/2002 and Directive 86/635/EEC to the extent this isat: (a) EBA considers this information necessary to obtain a comprehensive view of the risk profile of an institution's activities; (b) EBA, in cooperation with the ESRB, considers this information necessary for the performance of macro-prudential oversight tasks, in accordance with Regulation (EU) No 1092/2010 and Regulation (EU) No 1093/2010.
Amendment 595 #
Proposal for a regulation
Article 95 – paragraph 1 – subparagraph 4
Article 95 – paragraph 1 – subparagraph 4
Institutions shall communicate the results and any component data required to the competent authorities in a timely manner.
Amendment 596 #
Proposal for a regulation
Article 95 – paragraph 2 – subparagraph 1
Article 95 – paragraph 2 – subparagraph 1
EBA shall develop draft implementing technical standards to specify the definitions, classification criteria, uniform formats, frequencies and dates of reporting and the IT solutions to be applied in the Union for such reporting. Regarding the financial information, the scope of the implementing technical standard shall be limited to institutions that are subject to article 4 in Regulation (EC) No. 1606/2002. The reporting formats and frequency shall be proportionate to the nature, scale and complexity of the activities of the institutions. EBA shall consult the ESRB on the development of draft implementing technical standards related to the information referred to in paragraph 1a(b).
Amendment 620 #
Proposal for a regulation
Article 111 – paragraph 4
Article 111 – paragraph 4
4. Exposures to public-sector entities may be treated as exposures to the central government, regional government or local authority in whose jurisdiction they are established where there is no difference in risk between such exposures because of the existence of an appropriate guarantee by the central government, regional government or local authority.
Amendment 661 #
Proposal for a regulation
Article 119 – paragraph 1 – subparagraph 1 a (new)
Article 119 – paragraph 1 – subparagraph 1 a (new)
An exposure or any part of an exposure in the form of a foreign currency or variable interest rate loan fully secured by mortgage on residential property shall be assigned a risk weight of 50 %, even if the conditions on default experience of exposures and property market developments referred to in paragraph 2, are fulfilled.
Amendment 668 #
Proposal for a regulation
Article 119 – paragraph 2 – subparagraph 5 a (new)
Article 119 – paragraph 2 – subparagraph 5 a (new)
EBA on its own initiative or on request of the ESRB may, based on sound assessment of the default experiences and private and commercial immovable property market developments in a Member State, issue warnings to the relevant competent authorities and call for the introduction of stricter risk weights or stricter criteria. In case of non action EBA shall publish those warnings. EBA on its own initiative or on request of the ESRB may also call on the Council to take a decision in accordance with Article 18 Paragraph 2 of Regulation No. 1093/2010 of the European Parliament and of the Council. In this case EBA may take a decision in accordance to Art. 18 Paragraph 3 of Regulation No. 1093/2010 of the European Parliament and of the Council to implement stricter risk weights or stricter criteria for the affected markets
Amendment 676 #
Proposal for a regulation
Article 120 – paragraph 2 – point d
Article 120 – paragraph 2 – point d
(d) the part of the loan to which the 35% risk weight unless otherwise determined under Article 119(2) is assigned does not exceed 80% unless otherwise determined under Article 119(2) of the market value of the property in question or 80% of the mortgage lending value unlesa Loan to Value ratio of 100%, or a Loan to Value ratio of 90% in the case of a foreign currency or variable interest rate loan, and fulfils otherwise determin criteria provided under Article 119(2) of the property in question in those Member States that have laid down rigorous criteria for the assessment of the mortgage lending value in statutory or regulatory provisions.
Amendment 684 #
Proposal for a regulation
Article 121 – paragraph 2 – point d
Article 121 – paragraph 2 – point d
(d) The 50 % risk weight unless otherwise provided under Article 119(2) shall be assigned to the part of thea loan that does not exceed 50 % of the market value of the property or 60 % of the mortgage lending value unlesa Loan to Value ratio of 80%, or a Loan to Value ratio of 70% in the case of a foreign currency or variable interest rate loan, and fulfils otherwise criteria provided under Article 119(2) of the property in question in those Member States that have laid down rigorous criteria for the assessment of the mortgage lending value in statutory or regulatory provisions.
Amendment 714 #
Proposal for a regulation
Article 124 – paragraph 5 a (new)
Article 124 – paragraph 5 a (new)
5a. Issuances of covered bonds, which exceed 4% of total assets of a credit institution, also taking deposits, are subject to a financial transfer to an internal deposit reserve.
Amendment 718 #
Proposal for a regulation
Article 133 – paragraph -1 (new)
Article 133 – paragraph -1 (new)
(-1) An external credit rating may only be used if the institutions has a balance sheet of less than 2,5 billion Euros and demonstrated that it is unable to assess the credit risk by other means or where it can demonstrate to the satisfaction of the competent authority that the burden of an internal assessment is not justified by the materiality of the current and expected future exposure resulting from the assets concerned.
Amendment 719 #
Proposal for a regulation
Article 133 – paragraph 1 a (new)
Article 133 – paragraph 1 a (new)
Competent authorities shall closely monitor the adequacy of institutions credit assessment processes and ensure that institutions do not agree to contractual rules that result in them automatically selling off assets in case of a downgrade of the creditworthiness by an external credit rating agency.
Amendment 765 #
Proposal for a regulation
Article 175 – paragraph 1 – subparagraph 1 – point a
Article 175 – paragraph 1 – subparagraph 1 – point a
(a) an institution's own estimates of the risk parameters PD, LGD, conversion factor and EL shall incorporate all relevant data, information and methods. The estimates shall be derived using both historical experience and empirical evidence, as well as dealing with perceived and identified deficiencies and areas needing improvement, amongst others material impacts of social and environmental risks, and not based purely on judgemental considerations. The estimates shall be plausible and intuitive and shall be based on the material drivers of the respective risk parameters. The less data an institution has, the more conservative it shall be in its estimation;
Amendment 793 #
Proposal for a regulation
Article 238 – paragraph 1 – introductory part
Article 238 – paragraph 1 – introductory part
1. The originator institution of a traditional securitisation may exclude 75% of the securitised exposures from the calculation of risk- weighted exposure amounts and expected loss amounts if either of the following conditions is fulfilled:
Amendment 795 #
Proposal for a regulation
Article 238 – paragraph 6
Article 238 – paragraph 6
6. The competent authorities shall keep EBA informed about the specific cases, referred to in paragraph 2, where the possible reduction in risk-weighted exposure amounts is not justified by a commensurate transfer of credit risk to third parties, and the use institutions make of paragraph 4. EBA shall monitor the range of practices in this area and shall, in the light of the observed best practices in accordance with Article 165 of Regulation (EU) No. 1093/2010, issue guidelinedevelop draft implementing technical standards.
Amendment 796 #
Proposal for a regulation
Article 240 – paragraph 1 – point a
Article 240 – paragraph 1 – point a
(a) in the case of a traditional securitisation, exclude from its calculation of risk-weighted exposure amounts, and, as relevant, expected loss amounts, 75% of the exposures which it has securitised;
Amendment 798 #
Proposal for a regulation
Article 244 – paragraph 1
Article 244 – paragraph 1
In calculating risk-weighted exposure amounts for the securitised exposures, where the conditions in Article 239 are met, the originator institution of a synthetic securitisation shall, subject to Article 245, use the relevant calculation methodologies set out in this Section and not those set out in Chapter 2. For institutions calculating risk-weighted exposure amounts and expected loss amounts under Chapter 3, the expected loss amount in respect of such exposures shall be zero25% of the expected loss amount if the exposure has not been transferred.
Amendment 800 #
Proposal for a regulation
Article 264 – paragraph 3 a (new)
Article 264 – paragraph 3 a (new)
3a. Institutions covered by this regulation shall not apply Geoscoring to determine the creditworthiness of clients.
Amendment 818 #
Proposal for a regulation
Article 345 – paragraph 1 – point a
Article 345 – paragraph 1 – point a
(a) at any time of the year it holds own funds for this risk which are not lower than50% above the average of own funds requirement for that risk estimated on a conservative basis for the coming year;
Amendment 819 #
Proposal for a regulation
Article 345 – paragraph 1 – point b
Article 345 – paragraph 1 – point b
(b) it estimates on a very conservative basis the expected volatility for the figure calculated under point (a), taking into account the higher volatility in years of crisis or unforeseen critical situations, using the precautionary principle regarding possible long-term exaggerative swings in world market prices of commodities;
Amendment 820 #
Proposal for a regulation
Article 345 – paragraph 1 – point c
Article 345 – paragraph 1 – point c
(c) its average own funds requirement for this risk does not exceed 2,5% of its own funds or 1 million500 000 EUR and, taking into account the volatility estimated in accordance with (b), the expected peak own funds requirements do not exceed 6.3,5% of its own funds;
Amendment 821 #
Proposal for a regulation
Article 345 – paragraph 1 – point d
Article 345 – paragraph 1 – point d
(d) The institution monitors on an ongoing basis whether the estimates carried out under points (a) and (b) still reflect the reality and whether its activities have an influence on world market prices and price volatility of commodities, especially on food agricultural commodities.
Amendment 828 #
Proposal for a regulation
Article 350 – paragraph 1 – introductory part
Article 350 – paragraph 1 – introductory part
Institutions mayshall use the minimum spread, carry and outright rates set out in the following table 2 instead of those indicated in Article 348 provided that the institutions:
Amendment 829 #
Proposal for a regulation
Article 350 – paragraph 1 – point b
Article 350 – paragraph 1 – point b
Amendment 830 #
Proposal for a regulation
Article 350 – paragraph 1 – point c
Article 350 – paragraph 1 – point c
Amendment 831 #
Proposal for a regulation
Article 350 – Table 2
Article 350 – Table 2
Amendment 857 #
Proposal for a regulation
Article 374 – paragraph 1 – subparagraph 2 – introductory part
Article 374 – paragraph 1 – subparagraph 2 – introductory part
Counterparty ‘i’ shall be mapped to one of the seven weights wi based on an external credit assessment by a nominated ECAI, as set out in Table 1. For a counterparty for which a credit assessment by a nominated ECAI is not available follows:
Amendment 860 #
Proposal for a regulation
Article 375 – paragraph 1 – subparagraph 1 – point b
Article 375 – paragraph 1 – subparagraph 1 – point b
(b) index credit default swaps, provided that the basis between any individual counterparty spread and the spreads of index credit default swap hedges is reflected, to the satisfaction of the competent authority, in the Value-at-Risk.
Amendment 861 #
Proposal for a regulation
Article 375 – paragraph 1 – subparagraph 4
Article 375 – paragraph 1 – subparagraph 4
If the basis between any individual counterparty spread and the spreads of index credit default swap hedges is not reflected to the satisfaction of the competent authority, then an institution shallnot reflect only 50% of the notional amount of index hedges in the Value-at- Risk.
Amendment 864 #
Proposal for a regulation
Article 383 – paragraph 1 – subparagraph 1 – point d a (new)
Article 383 – paragraph 1 – subparagraph 1 – point d a (new)
(da) the expected run-off of the exposure expressed as the amount maturing within monthly maturity buckets up to one year, quarterly maturity buckets up to three years and yearly thereafter.
Amendment 865 #
Proposal for a regulation
Article 383 – paragraph 1 a (new)
Article 383 – paragraph 1 a (new)
1a. An institution shall report to the competent authorities, in addition to the report referred to in paragraph 1, the following information about its 10 largest exposures on a consolidated basis to institutions as well as its 10 largest exposures on a consolidated basis to unregulated financial entities, as defined in Article 137(1) point 6, including large exposures exempted from the application of Article 384(1) (a) the identification of the client or the group of connected clients to which an institution has a large exposure; (b) the exposure value before taking into account the effect of the credit risk mitigation, when applicable; (c) where used, the type of funded or unfunded credit protection; (d) the exposure value after taking into account the effect of the credit risk mitigation calculated for the purpose of Article 384(1); (e) the expected run-off of the exposure expressed as the amount maturing within monthly maturity buckets up to one year, quarterly maturity buckets up to three years and yearly thereafter.
Amendment 866 #
Proposal for a regulation
Article 384 – paragraph 1 a (new)
Article 384 – paragraph 1 a (new)
1a. An institution shall not incur a total exposure to unregulated financial entities, as defined in Article 137(1) point 6, after taking into account the effect of the credit risk mitigation in accordance with Articles 388 to 392, that exceeds 25 % of its eligible capital or EUR 150 million, whichever is the higher. Competent authorities may set a lower limit than EUR 150 million and shall inform EBA and the Commission thereof.
Amendment 867 #
Proposal for a regulation
Article 389 – paragraph 1 – subparagraph 1 – point a
Article 389 – paragraph 1 – subparagraph 1 – point a
(a) asset items constituting claims on central governments or central banks which, unsecured, would be assigned a 0 % risk weight under Part Three, Title II, Chapter 2;.
Amendment 870 #
Proposal for a regulation
Article 389 – paragraph 1 – subparagraph 1 – point a a (new)
Article 389 – paragraph 1 – subparagraph 1 – point a a (new)
(aa) asset items constituting claims on central governments that are limited for a specific sovereign state to the maximum of 10% of an institution's eligible capital shall be assigned a 0% risk weight under Part Three, Title II, Chapter 2.
Amendment 871 #
Proposal for a regulation
Article 389 – paragraph 1 – subparagraph 1 – point a b (new)
Article 389 – paragraph 1 – subparagraph 1 – point a b (new)
(ab) asset items constituting claims on central governments that exceed for a specific sovereign state 10% of an institution's eligible capital shall be assigned a risk weight of 0% to 20%, on the basis of appropriate specific criteria set out by EBA.
Amendment 872 #
Proposal for a regulation
Article 389 – paragraph 1 – subparagraph 1 – point c
Article 389 – paragraph 1 – subparagraph 1 – point c
(c) asset items constituting claims carrying the explicit guarantees of central governments, central banks, international organisations, multilateral development banks or public sector entities, where unsecured claims on the entity providing the guarantee would be assigned a 0 % risk weight under Part Three, Title II, Chapter 2; . The explicit guarantees of the aforementioned institutions shall be statistically measured and categorised as contingent liabilities as defined in article 14(3) of the Council Directive 2011/85/EU. Furthermore, the financial value in relation to the specific guarantee holders shall be statistically measured. The respective banks shall disclose in their business report the received guarantees of the aforementioned categories.
Amendment 875 #
Proposal for a regulation
Article 389 – paragraph 1 – subparagraph 1 – point d
Article 389 – paragraph 1 – subparagraph 1 – point d
(d) other exposures attributable to, or guaranteed by, central governments, central banks, international organisations, multilateral development banks or public sector entities, where unsecured claims on the entity to which the exposure is attributable or by which it is guaranteed would be assigned a 0 % risk weight under Part Three, Title II, Chapter 2;. The respective explicit guarantees of central governments or public sector entities shall be statistically measured and categorised as contingent liabilities as defined in article 14(3) of the Council Directive 2011/85/EU. Furthermore the total financial value in relation to the specific guarantee holders shall be statistically measured. The respective banks shall disclose in their business report the received guarantees of the aforementioned categories.
Amendment 877 #
Proposal for a regulation
Article 389 – paragraph 1 – subparagraph 1 – point e
Article 389 – paragraph 1 – subparagraph 1 – point e
(e) asset items constituting claims on regional governments or local authorities of Member States where those claims would be assigned a 0 % risk weight under Part Three, Title II, Chapter 2 and other exposures to or guaranteed by those regional governments or local authorities, claims on which would be assigned a 0 % risk weight under Part Three, Title II, Chapter 2;. The respective guarantees of regional governments or local authorities shall be statistically measured and categorised as contingent liabilities as defined in article 14(3) of the Council Directive 2011/85/EU. Furthermore, the financial value in relation to the specific guarantee holders shall be statistically measured. The respective banks shall disclose in their business report the received guarantees of the aforementioned categories.
Amendment 887 #
Proposal for a regulation
Article 389 – paragraph 2 a (new)
Article 389 – paragraph 2 a (new)
2a. EBA shall develop draft regulatory technical standards to specify the criteria referred to in paragraph 1, point (a b). EBA shall submit those draft regulatory technical standards to the Commission by six months after the date of entry into force of this Regulation. Power is delegated to 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 to 14 of Regulation (EU) No 1093/2010.
Amendment 891 #
Proposal for a regulation
Article 391 a (new)
Article 391 a (new)
Article 391a Loan-to-value Ratio (LTV) for mortgage lending (a) The value of a mortgage loan shall not exceed a total of the value of the property, notary fees, administrative costs and taxes. Stricter ratios may be adopted by the relevant competent authorities temporarily or permanently. Competent authorities shall adopt stricter LTVs in their markets for mortgage loan agreements which bear the risk of varying instalments due to the development of exchange rates or interest rates. The loan shall in those cases not exceed a total of 90% of the value of the property, notary fees, administrative costs and taxes (b) EBA on its own initiative or on request of the ESRB may, based on sound assessment of the property loan developments in a Member State, issue warnings to the relevant competent authorities and call for the introduction stricter LTVs in general or on specific mortgage credit agreements. (c) In case of non action EBA shall publish those warnings. EBA on its own initiative or on request of the ESRB may also call on the council to take a decision in accordance with Article 18 Paragraph 2 of Regulation No. 1093/2010 of the European Parliament and of the Council. In this case EBA may take a decision in accordance to Art. 18 Paragraph 3 of Regulation No. 1093/2010 of the European Parliament and of the Council to implement stricter LTVs for the affected markets.
Amendment 926 #
Proposal for a regulation
Article 401 a (new)
Article 401 a (new)
Article 401 a Stable Funding requirement 1. Institutions shall at all times ensure that long term funding requirements are adequately met with a diversity of stable funding instruments in order to meet long term funding obligations as they come due in an orderly fashion under both normal and stressed conditions. In order to satisfy this requirement, institutions shall ensure that they prudently assess the amount of assets that could not be monetised through sale or use as collateral in secured borrowing on an extended basis during times of prolonged idiosyncratic and systemic market stress lasting for one year and maintain at least an equal amount of stable funding with an effective maturity prudently assessed to be of more than one year under the same stress conditions. 2. Institutions will maintain a funding plan setting out the business as usual and contingency funding arrangements including instruments, maturities and sources of funding that will allow them to effectively fund the shortfall described in paragraph 1. 3. The provisions set out in Title III shall apply exclusively for the purposes of specifying reporting obligations set out in Article 403.
Amendment 928 #
Proposal for a regulation
Article 402 – paragraph 1
Article 402 – paragraph 1
Where a credit institution does not meet, or is expected not to meet the requirement set out in Article 401(1) and Article 401a(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 and Article 401a(1). 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.
Amendment 933 #
Proposal for a regulation
Article 403 – paragraph 1 – subparagraph 1
Article 403 – paragraph 1 – subparagraph 1
Institutions shall report to the competent authorities the items referred to in Title II and III and their components, including the composition of its liquid assets according to Article 404 and Annex III and the funding plan referred to in and Article 401a(3). The reporting frequency shall not be less than monthly for the requirement in Title II and Annex III and not less than quarterly for items referred to in Title III.
Amendment 984 #
Proposal for a regulation
Article 404 – paragraph 1 – subparagraph 2
Article 404 – paragraph 1 – subparagraph 2
Pending a uniform definition in accordance with Article 481(2) of high and extremely high liquidity and credit quality, institutions shall identify themselves in a given currency transferable assets that are respectively of high or extremely high liquidity and credit quality. Pending a uniform definition, competent authorities may, taking into account the criteria listed in Article 481(2), provide general guidance that institutions shall follow in identifying assets of high and extremely high liquidity and credit quality. In the absence of such guidance, institutions shall use transparent and objective criteria to this end, including some or all of the criteria listed in Article 481(2).
Amendment 1004 #
Proposal for a regulation
Article 404 – paragraph 2 – point a – point iii
Article 404 – paragraph 2 – point a – point iii
(iii) the credit institution has been set up and is sponsored by a Member State central or regional government and the asset isat government has an obligation to protect the economic basis of the institution and maintain its viability throughout its lifetime; or the asset is explicitly guaranteed by that government; and the asset is exclusively used to fund promotional loans grantede that government’s public policy objectives on a non- competitive, not for profit basis in order to promote its public policy objectives;
Amendment 1015 #
Proposal for a regulation
Article 404 – paragraph 2 – point a a (new)
Article 404 – paragraph 2 – point a a (new)
(aa) assets that are provided as collateral to the institution under secured lending and capital market driven transactions as defined in Article 188;
Amendment 1025 #
Proposal for a regulation
Article 404 – paragraph 3 – subparagraph 1 – point -a (new)
Article 404 – paragraph 3 – subparagraph 1 – point -a (new)
(-a) they are unencumbered;
Amendment 1056 #
Proposal for a regulation
Article 404 – paragraph 4 – subparagraph 1
Article 404 – paragraph 4 – subparagraph 1
EBA shall develop draft implementing technical standards listing the currencies which meet the conditions referred to in the paragraph 3 and the kinds of collateral considered eligible by Member States' and third party central banks in normal times referred to in paragraph 3 point (b).
Amendment 1061 #
Proposal for a regulation
Article 404 – paragraph 5
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 of the mark to market value of those shares or units as referred to in Article 406(1) 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 assets. Where the CIU, on a look through basis, invests more than 25% of its funds in assets that do not qualify as liquid according to Article 404 paragraph 2 point (b), or where the value of its shares or units is not regularly marked to market by the third parties referred to in Article 406 paragraph 3 points (a) and (b) and the competent authority is not satisfied that an institution has a robust internal method for such valuation as referred to in the introductory part of Article 406 paragraph 3 , shares or units in that CIU shall not be treated as liquid assets
Amendment 1100 #
Proposal for a regulation
Article 406 – paragraph 2 – subparagraph 1 – point c
Article 406 – paragraph 2 – subparagraph 1 – point c
(c) 20% for the assets in point (db) of Article 404(12).
Amendment 1102 #
Proposal for a regulation
Article 406 – paragraph 3 – subparagraph 1 – introductory part
Article 406 – paragraph 3 – subparagraph 1 – introductory part
Institutions shall develop robust methodologies and processes to calculate and report the market value and haircuts for shares or units in CIUs. Only where they can demonstrate to the satisfaction of the competent authority that the mzateriality of the exposure does not justify the development their own methodologies, institutions may rely on the following third parties to calculate and report the haircuts for shares or units in CIUs, in accordance with the methods set out in points (a) and (b) in the second subparagraph of paragraph 2:
Amendment 1107 #
Proposal for a regulation
Article 408 – paragraph 2 – subparagraph 1
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, includingresulting from any contractual arrangements such as other off balance sheet and contingent funding obligations including, but not limited to, committed funding facilities, un-drawn loans and advances to wholesale counterparties, mortgages that have been agreed but not yet drawn down, credit cards, overdrafts , planned outflows related to renewal or extension of new retail or wholesale loans and planned derivative payables. These outflows shall be assessed under the assumption of a combined idiosyncratic and market-wide stress scenario.
Amendment 1112 #
Proposal for a regulation
Article 409 – paragraph 1 – introductory part
Article 409 – paragraph 1 – introductory part
1. Institutions shall multiply the amount of retail deposits that are covered by a Deposit Guarantee Scheme according to Directive 94/19/EG or an equivalent deposit guarantee scheme in a third country by at least 2.5% where the scheme is fully funded ex-ante or 5% where the scheme is not so funded and the deposit is either
Amendment 1115 #
Proposal for a regulation
Article 409 – paragraph 2
Article 409 – paragraph 2
2. Institutions shall multiply other retail deposits not referred to in paragraph 1 by at least 107.5%.
Amendment 1118 #
Proposal for a regulation
Article 409 – paragraph 5 a (new)
Article 409 – paragraph 5 a (new)
5a. EBA shall develop draft implementing technical standards to determine the conditions of application of paragraph 5 in relation to the identification of retail deposits subject to contractual prohibition or financial disincentive to withdrawal and the definitions of those products. These standards shall take account of the effectiveness of contractual conditions in preventing outflows under the assumption of a combined idiosyncratic and market- wide stress scenario. EBA shall submit those draft implementing technical standards to the Commission by 1 January 2013. Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with the procedure laid down in Article 15 of Regulation (EU) No 1093/2010.
Amendment 1119 #
Proposal for a regulation
Article 410 – paragraph 2 – introductory part
Article 410 – paragraph 2 – introductory part
2. Institutions shall multiply liabilities, other than those due to financial customers that are not subject to this regulation, resulting from secured lending and capital market driven transactions as defined in Article 188 if they are collateralised by assets that would qualify as liquid assets according to Article 404 by:
Amendment 1122 #
Proposal for a regulation
Article 410 – paragraph 2 – point a
Article 410 – paragraph 2 – point a
(a) 0% up to the value of the liquid assets according to Article 406 where those assets meet the definition in Article 188 paragraph 3;
Amendment 1124 #
Proposal for a regulation
Article 410 – paragraph 2 – point a a (new)
Article 410 – paragraph 2 – point a a (new)
(aa) 50% up to the value of the liquid assets according to Article 406 where those assets meet the definition in Article 188 paragraph 2;
Amendment 1157 #
Proposal for a regulation
Article 410 – paragraph 8 – subparagraph 1 – point a
Article 410 – paragraph 8 – subparagraph 1 – point a
(a) the depositor meets one of the following criteria: i) it is a parent or subsidiary institution of the institution or another subsidiary of the same parent institution or; ii) it is linked to the institution by a relationship within the meaning of Article 12(1) of Directive 83/349/EEC; iii) it is a member of an institutional protection scheme compliant with Article 108 (7) (iv) it is the central institution or member in a network compliant with Article 389 (2) d);
Amendment 1186 #
Proposal for a regulation
Article 412 – paragraph 4 a (new)
Article 412 – paragraph 4 a (new)
4 a. Institutions shall report outflows from other contingent funding liabilities including but not limited to acceptances, endorsements, guarantees, underwriting agreements, standby letters of credit, documentary credits, warrants, indemnities, un-drawn note issuance facilities, other revolving credit facilities and other revocable credit and liquidity facilities. These outflows shall be assessed under the assumption of a combined idiosyncratic and market-wide stress scenario.
Amendment 1188 #
Proposal for a regulation
Article 412 – paragraph 5 a (new)
Article 412 – paragraph 5 a (new)
5 a. EBA shall develop draft regulatory technical standards specifying the treatment of contingent funding liabilities referred to in paragraph 4a(new), identifying products or services that shall be covered for these purposes and the appropriate methods to determine the outflows to be assigned. EBA shall submit those draft regulatory technical standards to the Commission by 30 June 2014. 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.
Amendment 1191 #
Proposal for a regulation
Article 413 – paragraph 1
Article 413 – paragraph 1
1. Institutions shall report their capped liquidity inflows. Capped liquidity inflows shall be the liquidity inflows limited to 75% of liquidity outflows. Institutions may exempt liquidity inflows from deposits placed with other institutions as well as inflows from loans and off balance sheet commitments and qualifying for the treatments set out in Article 108(6) or Article 108(7) or Article 389 (2) point (d) from this limit.
Amendment 1214 #
Proposal for a regulation
Article 413 – paragraph 2 – point c
Article 413 – paragraph 2 – point c
(c) monies due that the institution owing those monies treats according to Article 410(4), a shall be taken into account up to 25% of the amount due. Any undrawn credit or liquidity facilities and any other commitments received shall not be taken into account.
Amendment 1225 #
Proposal for a regulation
Article 413 – paragraph 4 – subparagraph 1 – point b
Article 413 – paragraph 4 – subparagraph 1 – point b
(b) the provider meets one of the following criteria: (i) it is a parent or subsidiary institution of the institution or another subsidiary of the same parent institution or(ii) it is linked to the institution by a relationship within the meaning of Article 12(1) of Directive 83/349/EEC (iii) it is member of the same institutional protection scheme referred to in Article 108(7) and a corresponding symmetric outflow is applied by the provider by derogation from Article 410;
Amendment 1239 #
Proposal for a regulation
Article 414 – paragraph 1 – point a
Article 414 – paragraph 1 – point a
(a) own funds;: (i) tier 1 capital instruments (ii) tier 2 capital instruments (iii) other preferred shares and capital instruments in excess of Tier 2 allowable amount having an effective maturity of one year or greater
Amendment 1240 #
Proposal for a regulation
Article 414 – paragraph 1 – point b – point iii
Article 414 – paragraph 1 – point b – point iii
(iii) deposits that qualify for the treatment in Article 410(34);
Amendment 1241 #
Proposal for a regulation
Article 414 – paragraph 1 – point b – point v
Article 414 – paragraph 1 – point b – point v
(v) of the deposits in (iii), those that fall under point (b) in Article 410(34)
Amendment 1242 #
Proposal for a regulation
Article 414 – paragraph 1 – point b – point vii a (new)
Article 414 – paragraph 1 – point b – point vii a (new)
(vii a) separately for amounts falling under (vii) - funding from financial customers subject to this regulation - funding from financial customers not subject to this regulation
Amendment 1244 #
Proposal for a regulation
Article 414 – paragraph 1 – point b – point x
Article 414 – paragraph 1 – point b – point x
(x) other liabilities resulting from securities issued that do not fall under (a): - liabilities resulting from securities issued with an effective maturity of one year or greater - liabilities resulting from securities issued with an effective maturity of less than one year;
Amendment 1248 #
Proposal for a regulation
Article 414 – paragraph 2 a (new)
Article 414 – paragraph 2 a (new)
2 a. The proportion of the amounts in paragraph 1 representing a prudent estimate of available stable funding shall be calculated and reported as follows: (a) items falling under paragraph 1 (a) and the first sub-paragraph of paragraph 2 (x) shall be multiplied by 100% (b) items falling under paragraph 1 (b)(i) shall be multiplied by 95% (c) items falling under paragraph 1 (b)(ii) and paragraph 1 (b)(iv) shall be multiplied by 80% (d) items falling under paragraph 1 (b)(vi) shall be multiplied by 40% (e) all items not covered in points (a) to (d) of this paragraph shall be multiplied by 0%
Amendment 1250 #
Proposal for a regulation
Article 415 – paragraph 1 – point a
Article 415 – paragraph 1 – point a
(a) the assets referred to in Article 404, paragraph 1 points (a) and (b) broken down by asset type;
Amendment 1251 #
Proposal for a regulation
Article 415 – paragraph 1 – point a a (new)
Article 415 – paragraph 1 – point a a (new)
(a a) the assets referred to in Article 404 paragraph 1 points (c)
Amendment 1252 #
Proposal for a regulation
Article 415 – paragraph 1 – point b
Article 415 – paragraph 1 – point b
(b) securities and money market instruments not included in (a); broken down as follows: - assets qualifying for credit step 1 under Article 117 - assets qualifying for credit step 2 under Article 117 - other assets
Amendment 1261 #
Proposal for a regulation
Article 415 – paragraph 2 a (new)
Article 415 – paragraph 2 a (new)
2 a. The proportion of the amounts in paragraph 1 representing a prudent estimate of required stable funding shall be calculated and reported as follows: (a) items falling under paragraph 1 point (a) shall be multiplied by 0% (b) items falling under paragraph 1 points (aa) and (g) ii shall be multiplied by 5% (c) items falling under the first sub- paragraph of paragraph 1 point (b) with a residual maturity of one year or more shall be multiplied by 20% (d) items falling under the second sub- paragraph of paragraph 1 point (b) with a residual maturity of one year or more shall be multiplied by 50% (e) items falling under paragraph 1 points (c) and (e) shall be multiplied by 50% (f) items falling under paragraph 1 points (g) iii shall be multiplied by 50% (g) items falling under paragraph 1 points (g) i with a residual maturity of less than one year shall be multiplied by 85% (h) items falling under paragraph 1 points (j) shall be multiplied by 10% (i) contingent obligations not covered in points (a) to (h) of this paragraph shall be multiplied by a percentage determined by the competent authority to reflect the portion of such obligations requiring stable funding (j) all items not covered in points (a) to (i) of this paragraph shall be multiplied by 100%
Amendment 1262 #
Proposal for a regulation
Article 416 – title
Article 416 – title
Calculation and setting of the leverage ratio
Amendment 1263 #
Proposal for a regulation
Article 416 – paragraph 1
Article 416 – paragraph 1
1. Institutions shall calculate, and disclose publically from January 2014 in accordance with article 436, their leverage ratio according to the methodology set out in paragraphs 2 to 10. In case of non compliance with the disclosure requirement or wrongful disclosure, EBA shall disclose the respective leverage ratio.
Amendment 1266 #
Proposal for a regulation
Article 416 – paragraph 1 a (new)
Article 416 – paragraph 1 a (new)
1 a. From January 2016 binding leverage ratios shall apply, differentiated according to banking models. a) A leverage ratio of 5 % shall apply to Global Systemically Important Financial Institutions, identified in accordance with the criteria and corresponding dynamic list established by the Financial Stability Board, to be increased to 7 % from January 2019, and 9% from January 2021 b) A leverage ratio of 2 % shall apply to Fundamental Banks, to be increased to 2,5 % from January 2019 and 3% from January 2021 c) A leverage ratio of 4% shall apply to all other institutions subject to this regulation, to be increased to 5 % from January 2019 and 6% from January 2021 In case of non compliance, EBA shall issue a warning, require corrective steps and set a date for compliance. In case of non compliance beyond the set date, institutions shall loose their license. The ESRB shall be empowered to adopt a recommendation addressed to the Commission under Regulation (EU) No 1092/2010 regarding the adoption of delegated acts in accordance with Article 445 in order lower the percentage rate in a), b), and c) in exceptional circumstances for individual institutions, unless they do not comply with the counter-cyclical buffer set in article 126 of the directive (inserted by OP). For the purposes of implementing such recommendations, the Commission shall be empowered to adopt delegated acts in accordance with Article 445. This delegation of power shall be subject to the procedure referred to in Article 446.
Amendment 1282 #
Proposal for a regulation
Article 416 – paragraph 6 – subparagraph 2
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.other than Fundamental Banks shall calculate the exposure value on the basis of IFRS accounting standards
Amendment 1330 #
Proposal for a regulation
Article 436 – paragraph 1 – introductory part
Article 436 – paragraph 1 – introductory part
1. Institutions shall disclose from January 2014 the following information regarding their leverage ratio as defined in Article 416 and their management of the risk of excessive leverage as defined in point (B) of Article 4(2) of Directive [inserted by OP]:
Amendment 1334 #
Proposal for a regulation
Article 436 – paragraph 1 a (new)
Article 436 – paragraph 1 a (new)
1 a. In case of non compliance with the disclosure requirement or wrongful disclosure, EBA shall disclose the respective leverage ratio.
Amendment 1337 #
Proposal for a regulation
Article 436 – paragraph 2 – subparagraph 2
Article 436 – paragraph 2 – subparagraph 2
EBA shall submit those draft implementing technical standards to the Commission by 30 June 20143.
Amendment 1338 #
Proposal for a regulation
Article 436 a (new)
Article 436 a (new)
Amendment 1343 #
Proposal for a regulation
Article 443 – paragraph 1 – introductory part
Article 443 – paragraph 1 – introductory part
The CommissionESRB shall be empowered to adopt delegated acts in accordance with Article 445, to impose stricter prudential requirements, for a limited period of time, for all exposures or for exposures to one or more sectors, regions or Member States, where this is necessary to address changes in the intensity of micro-prudential and macro-prudential risks which arise from market developments emerging after the entry into force of this Regulatopinions or recommendations addressed to the Commission under Regulation (EU) No 1092/2010 regarding the imposition of stricter prudential requirements than those provided for in this Regulation. Such opinions and recommendations may address the prudential requirements, as appropriate, for one or more sectors, regions, in particular upon the recommendation or opinion of the ESRB, concerningMember States, or countries outside the EU, for the EU as a whole, concerning an increase in:
Amendment 1349 #
Proposal for a regulation
Article 443 – paragraph 1 – point a
Article 443 – paragraph 1 – point a
(a) a temporary increase in the level of own funds laid down in Article 87;
Amendment 1362 #
Proposal for a regulation
Article 443 – paragraph 1 – point k a (new)
Article 443 – paragraph 1 – point k a (new)
(k a) the requirements for large exposures laid down in Article 381 and Articles 384 to 392;
Amendment 1366 #
Proposal for a regulation
Article 443 – paragraph 1 – point k b (new)
Article 443 – paragraph 1 – point k b (new)
(k b) the general principles and technical criteria on transparency and disclosure laid down in Articles 419 to 420 and Articles 422 to 436;
Amendment 1368 #
Proposal for a regulation
Article 443 – paragraph 1 – point k c (new)
Article 443 – paragraph 1 – point k c (new)
(k c) the requirements for liquidity risk laid down in Articles under Part Six of this Regulation, including any amended or supplementary requirements introduced under the legislative proposals under Article 481 of this Regulation;
Amendment 1372 #
Proposal for a regulation
Article 443 – paragraph 1 – point k d (new)
Article 443 – paragraph 1 – point k d (new)
(k d) the requirements for leverage laid down in Articles under Part Seven of this Regulation, including any amended or supplementary requirements for leverage introduced under the legislative proposals under Article 482 of this Regulation.
Amendment 1376 #
Proposal for a regulation
Article 443 – paragraph 2
Article 443 – paragraph 2
This delegate ESRB shall be empowered to adopt opinions of power shall be subject to the procedure referred to in Article 446r recommendations addressed to the Commission under Regulation (EU) No 1092/2010 regarding the adoption of delegated acts in accordance with Article 445 in order to amend or extend the list of prudential requirements specified in paragraph 1 (a) to (n).
Amendment 1378 #
Proposal for a regulation
Article 443 – paragraph 2 a (new)
Article 443 – paragraph 2 a (new)
For the purposes of implementing the opinions and recommendations referred to in paragraphs 1 and 2, the Commission shall be empowered to adopt delegated acts in accordance with Article 445. This delegation of power shall be subject to the procedure referred to in Article 446
Amendment 1389 #
Proposal for a regulation
Article 444 – paragraph 1 a (new)
Article 444 – paragraph 1 a (new)
1 a. The Commission shall be empowered to adopt a delegated act in accordance with Article 445 to specify in detail the general requirements set out in Article 401a(new). Such specification shall be based on the items to be reported according to Part Six, Title III. The delegated act shall also specify under which circumstances competent authorities have to impose specific stable funding requirements and available funding requirements on credit institutions in order to capture specific risks to which they are exposed.
Amendment 1390 #
Proposal for a regulation
Article 444 – paragraph 2 – subparagraph 1 – introductory part
Article 444 – paragraph 2 – subparagraph 1 – introductory part
The Commission shall be empowered to modify the items referred to in paragraph 1 and paragraph 1a(new) or add additional items only if one of the following conditions is met:
Amendment 1391 #
Proposal for a regulation
Article 444 – paragraph 2 – subparagraph 1 – point a
Article 444 – paragraph 2 – subparagraph 1 – point a
(a) athe liquidity coverage requirement and stable funding requirement based on those criteria, considered either individually or cumulatively, would have a material detrimental impact on the business and risk profile of European institutions or on the stability and orderly functioning of financial markets or the economy; or
Amendment 1392 #
Proposal for a regulation
Article 444 – paragraph 2 – subparagraph 1 – point b
Article 444 – paragraph 2 – subparagraph 1 – point b
(b) modification is appropriate to align them with internationally agreed standards for liquidity supervision where these are higher than those provided for in this Regulation.
Amendment 1393 #
Proposal for a regulation
Article 444 – paragraph 3
Article 444 – paragraph 3
For the purposes of point (a), in assessing the impact of a liquidity coverage requirement and stable funding requirement based on those criteria, the Commission shall take into account the reports referred to in paragraphs 1, 2 and 23 of Article 481.
Amendment 1394 #
Proposal for a regulation
Article 444 – paragraph 3
Article 444 – paragraph 3
3. The Commission shall adopt the first delegated act referred to in paragraph 1 at the latest by 31 December 2015. AThat delegated act adopted in accordance with this Article shall, however, not apply before 1 January 2015.
Amendment 1395 #
Proposal for a regulation
Article 444 – paragraph 3 a (new)
Article 444 – paragraph 3 a (new)
3 a. The Commission shall adopt the first delegated act referred to in paragraph 1a(new) at the latest by 31 December 2018. That delegated act shall, however, not apply before 1 January 2018.
Amendment 1406 #
Proposal for a regulation
Article 448 – paragraph 1 – point a – point i
Article 448 – paragraph 1 – point a – point i
(i) a Common Equity Tier 1 capital ratio of a level that falls within a range with a lowest value of 34.5% and a highest value of 4.59%;
Amendment 1408 #
Proposal for a regulation
Article 448 – paragraph 1 – point a – point ii
Article 448 – paragraph 1 – point a – point ii
(ii) a Tier 1 capital ratio of a level that falls within a range with a lowest value of 4.56 % and a highest value of 610.5%;
Amendment 1412 #
Proposal for a regulation
Article 448 – paragraph 1 – point b – point i
Article 448 – paragraph 1 – point b – point i
(i) a Common Equity Tier 1 capital ratio of a level that falls within a range of 46 % to 4.59 %;
Amendment 1414 #
Proposal for a regulation
Article 448 – paragraph 1 – point b – point ii
Article 448 – paragraph 1 – point b – point ii
(ii) a Tier 1 capital ratio of a level that falls within a range of 47.5 % to 610.5 %.
Amendment 1417 #
Proposal for a regulation
Article 448 – paragraph 1 – point b a (new)
Article 448 – paragraph 1 – point b a (new)
(b a) at all times during the period from 1 January 2015 to 31 December 2015: (i) a Common Equity Tier 1 capital ratio of a level that falls within a range of 7 % to 9 %; (ii) a Tier 1 capital ratio of a level that falls within a range of 8.5 % to 10.5%.
Amendment 1419 #
Proposal for a regulation
Article 448 – paragraph 1 a (new)
Article 448 – paragraph 1 a (new)
1 a. By way of derogation from points (a) and (b) of Article 87(1a), Fundamental Banks shall satisfy the following own funds requirements: (a) at all times during the period from 1 January 2013 to 31 December 2013: (i) a Common Equity Tier 1 capital ratio of a level that falls within a range with a lowest value of 3.5% and a highest value of 4.5%; (ii) a Tier 1 capital ratio of a level that falls within a range with a lowest value of 4.5% and a highest value of 6%; (b) at all times during the period from 1 January 2014 to 31 December 2014: (i) a Common Equity Tier 1 capital ratio of a level that falls within a range of 4 % to 4.5 %; (ii) a Tier 1 capital ratio of a level that falls within a range of 4.5 % to 6%.
Amendment 1508 #
Proposal for a regulation
Article 481 – paragraph 1 – subparagraph 1
Article 481 – paragraph 1 – subparagraph 1
EBA shall monitor and evaluate the reports made in accordance with Article 403(1), across currencies and across different business models. EBA shall, and after consulting the ESRB, annually and for the first time by 31 December 2013 report to the Commission whether a specification of the general liquidity coverage requirement in Article 401 based on the criteria for liquidity reporting in Part Six Title II, considered either individually or cumulatively, is likely to have a material detrimental impact on the business and risk profile of Union institutions or on financial markets or the economy and bank lending, with a particular focus on lendingthe stability and orderly functioning of financial markets or the economy and the stability of the supply of credit to small and medium enterprises and on trade financing, including lending under official export credit insurance schemes.
Amendment 1546 #
Proposal for a regulation
Article 481 – paragraph 3 – subparagraph 1
Article 481 – paragraph 3 – subparagraph 1
Amendment 1564 #
Proposal for a regulation
Article 482 – paragraph 1
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 introductionmprovement of one or more levels for the leverage ratio that institutions would bare required to meet, suggesting anif appropriate a more adequate calibration for those levels and any appropriate adjustments to the capital measure and the total exposure measure as defined in Article 416.
Amendment 1577 #
Proposal for a regulation
Article 482 – paragraph 2 – point g
Article 482 – paragraph 2 – point g
(g) whether 3% would be an appropriathe level for the leverage ratios based on Tier 1 capital is appropriate, and, if not, what level would be the appropriate one;
Amendment 1586 #
Proposal for a regulation
Article 482 – paragraph 2 – point h
Article 482 – paragraph 2 – point h
(h) whether introducmproving the leverage ratio as a requirement for institutions would necessitate any changes to the leverage ratio framework provided by this Regulation and, if so, which ones;
Amendment 1588 #
Proposal for a regulation
Article 482 – paragraph 2 – point i
Article 482 – paragraph 2 – point i
(i) whether introducmproving the leverage ratio as a requirement for institutions would effectively constrain the risk of excessive leverage on the part of those institutions and, if so, whether the level for the leverage ratio should be the same for all institutions or shouldcontinue to differ for different types of institution and, in the latter case, what additional calibrations would be required.
Amendment 1593 #
Proposal for a regulation
Article 482 – paragraph 3 – point a – introductory part
Article 482 – paragraph 3 – point a – introductory part
(a) the impact of introducing the leverage ratio, determined in accordance with Article 416, as a requirement that institutions would have to meet on:
Amendment 1625 #
Proposal for a regulation
Article 487 – paragraph 2
Article 487 – paragraph 2
2. Article 436(1) shall apply from 1 January 20154.
Amendment 1629 #
Proposal for a regulation
Article 487 – paragraph 2 a (new)
Article 487 – paragraph 2 a (new)
2 a. Article 436 a (new)(1) shall apply from 1 January 2015