BETA

98 Amendments of Philippe LAMBERTS related to 2016/0360A(COD)

Amendment 226 #
Proposal for a regulation
Recital 67
(67) Since the objectives of this Regulation, namely to reinforce and refine already existing Union legislation ensuring uniform prudential requirements that apply to credit institutions and investment firms throughout the Union, cannot be sufficiently achieved by the Member States but can rather, by reason of their scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives. The provisions of this Regulation should not require institutions to provide information based on accounting frameworks differing from those applicable to them pursuant to other acts of Union and national law.
2018/02/02
Committee: ECON
Amendment 244 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3 – point j
Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 144 a (new)
(144a) 'shadow banking entity’ means an undertaking that carries out one or more credit intermediation activities and that is not an undertaking listed in Annex III a (new).
2018/02/02
Committee: ECON
Amendment 315 #
Proposal for a regulation
Article 1 – paragraph 1 – point 13 a (new)
Regulation (EU) No 575/2013
Article 34 a (new)
(13a) The following Article 34a is inserted: "Article 34a Prudential Provisioning Backstop for Non Performing Exposures (NPE) 1. For the purposes of this article, the provisions relating to an NPE shall be the sum of the following items: i. all accounting provisions under the applicable accounting standard including potential newly booked provisions; ii. expected loss shortfalls for the respective exposures in default in accordance with Articles 158 and 159 of this Regulation; and iii. CET 1 deductions from own funds 2. For all exposures classified as non- performing after 1/1/2018 an institution shall ensure that it maintains a provisions equal to 100% of the exposure amount. For NPEs that are not secured by collateral or other forms of credit risk protection institutions shall ensure that full provisioning is achieved in regular steps by 2 years after their classification as non-performing. For NPEs that are fully secured by collateral or other forms of credit risk protection institutions shall ensure that full provisioning is achieved in regular steps by 7 years after their classification as non-performing. 3. Institutions shall adjust their Common Equity Tier 1 capital by the amount corresponding to the provisions in this Article. 4. For the purposes of this Article, the following types of collateral or other forms of credit risk protection are accepted for either fully or partially securing NPEs: All types of immovable property collateral. Other eligible collateral or other forms of credit risk protection that fulfil the criteria of credit risk mitigation of Part Three, Title II, Chapter 4 of the CRR."
2018/02/02
Committee: ECON
Amendment 325 #
Proposal for a regulation
Article 1 – paragraph 1 – point 15
Regulation (EU) 575/2013
Article 37 – point b
(15) In Article 37, point b is replaced by the following: "(b) the amount to be deducted shall include goodwill included in the valuation of significant investments of the institution." Institutions shall not add back negative goodwill to their Common Equity Tier 1." Or. en (http://eur-lex.europa.eu/legal- content/EN/TXT/PDF/?uri=CELEX:32013R0575&qid=1516804302212&from=EN)
2018/02/02
Committee: ECON
Amendment 328 #
Proposal for a regulation
Article 1 – paragraph 1 – point 18
Regulation (EU) No 575/2013
Article 49 – paragraph 1 – introductory part
(18) In Article 49, the introductory part of paragraph 1 is replaced by the following: "1. For the purposes of calculating own funds on an individual basis, a sub- consolidated basis and a consolidated basis, where the competent authorities require or permit institutions to apply method 1, 2 or 3 of Annex I to Directive 2002/87/EC, the competent authorities until 2 January 2025 may permit institutions not to deduct the holdings of own funds instruments of a financial sector entity in which the parent institution, parent financial holding company or parent mixed financial holding company or institution has a significant investment, provided that the conditions laid down in points (a) to (e) of this paragraph are met:" content/EN/TXT/PDF/?uri=CELEX:32013R0575&qid=1516804302212&from=EN)Or. en (http://eur-lex.europa.eu/legal-
2018/02/02
Committee: ECON
Amendment 478 #
Proposal for a regulation
Article 1 – paragraph 1 – point 39 – point a
Regulation (EU) No 575/2013
Article 92 – paragraph 1 – point d
(d) a leverage ratio of 310%..
2018/02/05
Committee: ECON
Amendment 494 #
Proposal for a regulation
Article 1 – paragraph 1 – point 40
Regulation (EU) No 575/2013
Article 92 a – paragraph 1 – point (a)
(a) a risk-based ratio of 18%, representing the own funds and eligible liabilities of the institution expressed as a percentage of the total risk exposure amount calculated in accordance with paragraphs 3 and 4 of Article 92(3) and (4);
2018/02/05
Committee: ECON
Amendment 518 #
Proposal for a regulation
Article 1 – paragraph 1 – point 41
Regulation (EU) No 575/2013
Article 94 – paragraph 3 – point a – point i
(i) positions concerning foreign- exchange and commodities derivatives that are recognised as internal hedges against non-trading book foreign-exchange and commodities risk exposures;
2018/02/05
Committee: ECON
Amendment 520 #
Proposal for a regulation
Article 1 – paragraph 1 – point 41
Regulation (EU) No 575/2013
Article 94 – paragraph 3 a (new)
3a. Where the conditions set out in paragraph 1 are met, competent authorities may waive the requirements for the management of the trading book in Articles 102, 103 and 104. Appropriate risk management practices as stipulated in Articles 74 and 83 of Directive2013/36/EU shall remain unaffected.
2018/02/05
Committee: ECON
Amendment 521 #
Proposal for a regulation
Article 1 – paragraph 1 – point 42
Regulation (EU) No 575/2013
Article 99 – paragraph 4
4. The reports required in accordance with paragraphs 1 to 3 and the reports required in Articles 100, 101, 394 and 430 shall be submitted on an annual basis by small institutions as defined in Article 430a and, subject to paragraph 6, semi-annually or more frequently by all other institutions.
2018/02/05
Committee: ECON
Amendment 529 #
Proposal for a regulation
Article 1 – paragraph 1 – point 42
Regulation (EU) No 575/2013
Article 99 – paragraph 7 a (new)
7a. The EBA shall be mandated to develop by 31 December 2019 regulatory technical standards to implement a common EU reporting framework to streamline EU and national reporting requirements including supervisory reporting, the reporting for resolution, deposit guarantee and monetary policy purposes, as well as any statistical data requests to ensure that requirements apply at the same point in time. Newly introduced reporting requirements shall be applied not earlier than 2 years after their publication. Final reporting templates need to be made available at least 1 year prior to their application date. The EBA shall, together with the ECB, the SRB, national competent and resolution authorities as well as statistical authorities, draw up a calendar on planned additional reporting requirements and update it on a yearly basis.
2018/02/05
Committee: ECON
Amendment 530 #
Proposal for a regulation
Article 1 – paragraph 1 – point 42
Regulation (EU) No 575/2013
Article 99 – paragraph 8 a (new)
8a. Competent authorities shall require small and non-complex institutions as defined in Article 430a to report financial information required by paragraph 2 not more than annually.
2018/02/05
Committee: ECON
Amendment 534 #
Proposal for a regulation
Article 1 – paragraph 1 – point 42
Regulation (EU) No 575/2013
Article 99 – paragraph 11
11. Competent authorities may, statistical authorities, the ECB as well as the ESAs shall waive the requirements to report data items specified in the implementing technical standards referred to in this Article and Articles 100, 101, 394, 415 and 430 where those data items are outdated or already available to the competent authorities by means other than those specified under the above mentioned implementing technical standards, including where that information is available to the competent authorities in different formats or levels of granularity. Competent, resolution, designated and relevant authorities shall make use of data exchange wherever possible.
2018/02/05
Committee: ECON
Amendment 535 #
Proposal for a regulation
Article 1 – paragraph 1 – point 43
Regulation (EU) No 575/2013
Article 100 – paragraph 1
1. Institutions shall report to their competent authorities on their level of asset encumbrance only if more than 15% of their assets are encumbered.
2018/02/05
Committee: ECON
Amendment 558 #
Proposal for a regulation
Article 1 – paragraph 1 – point 52 a (new)
Regulation (EU) No 575/2013
Article 124
"Article 124 Exposures secured by mortgages on immovable property 1. An exposure or any part of an exposure fully secured by mortgage on immovable property shall be assigned a risk weight of 100 %, where the conditions under Article 125 or 126 are not met, except for any part of the exposure which is assigned to another exposure class. The part of the exposure that exceeds the mortgage value of the immovable property shall be assigned the risk weight applicable to the unsecured exposures of the counterparty involved. The part of an exposure treated as fully secured by immovable property shall not be higher than the pledged amount of the market value or in those Member States that have laid down rigorous criteria for the assessment of the mortgage lending value in statutory or regulatory provisions, the mortgage lending value of the property in question. 2. Based on the data collected under Article 101, and any other relevant indicators, the competent authorities shall periodically, and at least annually, assess whether the risk-weight of 35 % for exposures secured by mortgages on residential property referred to in Article 125 and the risk weight of 50 % for exposures secured on commercial immovable property referred to in Article 126 located in their territory are appropriately based on: (a) the loss experience of exposures secured by immovable property; (b) forward-looking immovable property markets developments; Competent authorities may set a higher risk weight or stricter criteria than those set out in Article 125(2) and Article 126(2), where appropriate, on the basis of financial stability considerations. For exposures secured by mortgages on residential property, the competent authority shall set the risk weight at a percentage from 35 % through 150 %, For exposures secured on commercial immovable property, the competent authority shall set the risk weight at a percentage from 50 % through 150 %, Within these ranges, the higher risk weight shall be set based on loss experience and taking into account forward-looking markets developments and financial stability considerations. Where the assessment demonstrates that the risk weights set out in Article 125(2) and Article 126(2) do not reflect the actual risks related to one or more property segments of such exposures, fully secured by mortgages on residential property or on commercial immovable property located in one or more parts of its territory, the competent authorities shall set, for those property segments of exposures, a higher risk weight corresponding to the actual risks. The competent authorities shall consult EBA on the adjustments to the risk weights and criteria applied, which will be calculated in accordance with the criteria set out in this paragraph as specified by the regulatory technical standards referred to in paragraph 4 of this Article. EBA shall publish the risk weights and criteria that the competent authorities set for exposures referred to in Articles 125, 126 and 199(1)(a). 3. When competent authorities set a higher risk weight or stricter criteria, institutions shall have a 6-month transitional period to apply the new risk weight. 4. EBA shall develop draft regulatory technical standards to specify: (a) the rigorous criteria for the assessment of the mortgage lending value referred to in paragraph 1; (b) the conditions referred to in paragraph 2 that competent authorities shall take into account when determining higher risk-weights, in particular the term of ‘financial stability considerations’. 5. The institutions of one Member 5. State shall apply the risk-weights and criteria that have been determined by the competent authorities of another Member State to exposures secured by mortgages on commercial and residential property located in that Member State." (52a) Article 124 is replaced by the following: "Article 124 Exposures secured by mortgages on immovable property -1. For the purposes of this article the designated authority is the authority referred to in Article 458 paragraph 1. 1. An exposure or any part of an exposure fully secured by mortgage on immovable property shall be assigned a risk weight of 100 %, where the conditions under Article 125 and Article 126 are not met, except for any part of the exposure which is assigned to another exposure class. The part of the exposure that exceeds the mortgage value of the property shall be assigned the risk weight applicable to the unsecured exposures of the counterparty involved. The part of an exposure treated as fully secured by immovable property shall not be higher than the pledged amount of the market value or in those Member States that have laid down rigorous criteria for the assessment of the mortgage lending value in statutory or regulatory provisions, the mortgage lending value of the property in question. 2. Based on the data collected under Article 101, and any other relevant indicators, the competent authorities shall periodically, and at least annually or upon request by the designated authority, assess whether the risk-weight of 35 % for exposures secured by mortgages on residential property referred to in Article 125 and the risk weight of 50 % for exposures secured on commercial immovable property referred to in Article 126 located in their territory are appropriately based on: (a) the loss experience of exposures secured by immovable property; (b) forward-looking immovable property markets developments; Competent authorities will share the result of their assessment with designated authorities. 3. Where, based on the assessment referred to in paragraph 2 of this Article, a competent authority concludes that the risk weights set out in Article 125 (2) or Article 126 (2) do not reflect the actual risks related to exposures fully secured by mortgages on residential or commercial immovable property located in the Member State of the competent authority, it shall increase the risk weights applicable to those exposures or impose stricter criteria than those set out in Article 125 (2) or Article 126 (2). The designated authority may request the competent authority to perform an assessment as per paragraph 2 of this Article. The designated authority may set a higher risk weight or stricter criteria than those set out in Article 125 (2) and Article 126 (2) where all the following conditions are met: (a) it has consulted the competent authority and the ESRB on the changes; (b) it considers that refraining from implementing the changes would materially affect current or future financial stability in its Member State. The competent authorities shall consult EBA and inform the designated authority on the adjustments to the risk weights and criteria applied. The competent and designated authorities shall notify EBA and the ESRB about any adjustments to risk weights and criteria applied pursuant to this paragraph. EBA and the ESRB shall publish the risk weights and criteria that the authorities set for exposures referred to in Articles 125, 126 and 199 (1) (a). 4. For the purposes of paragraph 3 competent and designated authorities may set the risk weights within the following ranges: (a) 35 % to 150% for exposures secured by mortgages on residential property; (b) 50 % to 150 % for exposures secured by mortgages on commercial immovable property. 4a. Where a competent or designated authority sets higher risk weights or stricter criteria pursuant to paragraph 3, institutions shall have a 6-month transitional period to apply the new risk weight them. Institutions shall apply the higher risk weights or stricter criteria, as applicable, to all their corresponding exposures secured by mortgages on commercial and residential property located in that Member State. 4b. EBA in cooperation with the ESRB shall develop draft regulatory technical standards to specify the rigorous criteria for the assessment of the mortgage lending value referred to in paragraph 1 and the conditions referred to in paragraph 2 that competent authorities shall take into account when determining higher risk weights. EBA shall submit those draft regulatory technical standards to the Commission by 31 December 2019. 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) No 1093/2010. The institutions of one Member State shall apply the risk- weights and criteria that have been determined by the authorities of another Member State to exposures secured by mortgages on commercial and residential immovable property located in that Member State." Or. en (http://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex%3A32013R0575)
2018/02/05
Committee: ECON
Amendment 589 #
Proposal for a regulation
Article 1 – paragraph 1 – point 57 a (new)
Regulation (EU) No 575/2013
Article 164 – paragraph -1 (new)
(57a) In Article 164, the following paragraph -1 is inserted before paragraph 1: "(-1.) For the purposes of this article the designated authority is the authority referred to in Article 458 paragraph 1."
2018/02/05
Committee: ECON
Amendment 590 #
Proposal for a regulation
Article 1 – paragraph 1 – point 57 a (new)
Regulation (EU) No 575/2013
Article 164 – paragraphs 5, 6 and 7
(57a) In Article 164, paragraphs 5, 6 and 7 are replaced by the following: "5. Based on the data collected under Article 101 and on any other relevant indicators, and taking into account forward-looking immovable property market developments and any other relevant indicators, the competent authorities shall periodically, and at least annually or upon request by the designated authority, assess whether the minimum LGD values referred to in paragraph 4 of this Article, and the LGD values of corporate exposures secured by immovable property, are appropriate for exposures secured by mortgages on residential property or commercial immovable property located in their territory. Competent authorities may, wwill share the re appropriatesult of their assessment with designated authorities. Where, based on the basis of financial stabilsessment referred to the first subparagraph of this paragraph, a competent authority concludes that the minimum LGD values referred to in paragraph 4 of this Article, or where ity considerations,s the LGD values of corporate exposures secured by immovable property are not adequate, it shall set higher minimum LGD values of exposure weighted average LGD for exposures secured by immovable property in their territoryfor those exposures in its territory. Such higher minimum values may also be applied at the level of one or more property segments of exposures located in one or more parts of its territory. The designated authority may request the competent authority to perform an assessment as per paragraph 2 of this Article. The designated authority may set higher minimum LGD values where all the following conditions are met: (a) it has consulted the competent authority and the ESRB on the changes; (b) it considers that refraining from implementing the changes would materially affect current or future financial stability in its Member State. Competent authorities shall notify EBA and the designated authority of any changes to the minimum LGD values that they make in accordance with the firstsecond subparagraph and EBA shall publish these LGD values. The designated authorities shall notify the ESRB of any changes to the minimum LGD values that they make in accordance with the second subparagraph and EBAthe ESRB shall publish these LGD values. 6. EBAEBA, in cooperation with the ESRB, shall develop draft regulatory 6. technical standards to specify the conditions that competent authorities shall take into account when determining higher minimum LGD valuesassessing the appropriateness of LGD values as part of the assessment referred to in paragraph 5. EBA shall submit those draft regulatory technical standards to the Commission by 31 December 20149. 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) No 1093/2010. 7. The institutions of one Member State shall apply the higher minimum LGD values that have been determined by the competent authorities of another Member State to exposures secured by immovable propertyin accordance with paragraph 5 to all their corresponding exposures located in that Member State."
2018/02/05
Committee: ECON
Amendment 616 #
Proposal for a regulation
Article 1 – paragraph 1 – point 83
Regulation (EU) No 575/2013
Article 325 a – paragraph 2 – point (a)
(a) all the positions assigned to the trading book shall be included, except credit derivatives that are recognised as internal hedges against non-trading book credit risk exposures and except commodities derivatives that are recognised as internal hedges against non-trading book commodities risk exposures up to EUR 200 million;
2018/02/05
Committee: ECON
Amendment 617 #
Proposal for a regulation
Article 1 – paragraph 1 – point 83
Regulation (EU) No 575/2013
Article 325 a – paragraph 2 – point b
(b) all non-trading book positions generating foreign-exchange and commodity risks exceeding EUR 200 million shall be included;
2018/02/05
Committee: ECON
Amendment 692 #
Proposal for a regulation
Article 1 – paragraph 1 – point 95 – point a
Regulation (EU) No 575/2013
Article 395 – paragraph 1 – subparagraph 4
By way of derogation from the first subparagraph, an – an institution shall not incur an exposure to another institution identified as G-SII in accordance with Article 131 of Directive 2013/36/EU the value of which, after taking into account the effect of the credit risk mitigation in accordance with Articles 399 to 403, exceeds 10 % of its Tier 1 capital. An institution shall comply with such limit no later than within 12 months after the counterparty is identified as G-SII – an institution shall not incur an exposure to another institution identified as GO-SII in accordance with Article 131 of Directive 2013/36/EU the value of which, after taking into account the effect of the credit risk mitigation in accordance with Articles 399 to 403, exceeds 15 % of its Tier 1 capital. An institution shall comply with such limit no later than within 12 months after ithe counterparty is identified as GO-SII.. – an institution shall not incur an exposure to a shadow bank entity as defined in Article 4 paragraph 1 point 144 a(new) the value of which, after taking into account the effect of the credit risk mitigation in accordance with Articles 399 to 403, exceeds 15 % of its Tier 1 capital. – an institution shall not incur an exposure to sovereign bonds issued by any single Member State the value of which, after taking into account the effect of the credit risk mitigation in accordance with Articles 399 to 403, exceeds 100 % of its Tier 1 capital. By way of derogation from the last indent of the preceding paragraph the exposure limit referred to shall be 200% until one year after the date of application of this Regulation and shall decrease by 20% each subsequent year until the end of the fifth year after the date of application of this Regulation.
2018/02/05
Committee: ECON
Amendment 695 #
Proposal for a regulation
Article 1 – paragraph 1 – point 95 a (new)
Regulation (EU) No 575/2013
Article 395 a (new)
(95a) The following Article 395a is inserted: "Article 395a Aggregate limit on exposures to shadow banking entities An institution shall not incur a total exposure to shadow banking entities the value of which, after taking into account the effect of the credit risk mitigation in accordance with Articles 399 to 403, exceeds 25% of its Tier 1 capital. Competent authorities may set a lower limit than 25% of Tier 1 capital and shall inform EBA and the Commission thereof."
2018/02/05
Committee: ECON
Amendment 721 #
Proposal for a regulation
Article 1 – paragraph 1 – point 104 – point c a (new)
Regulation (EU) No 575/2013
Article 412 – paragraph 5
"5. Member States may maintain or introduce national provisions in the area of liquidity requirements before binding minimum standards for liquidity coverage requirements are specified and fully introduced in the Union in accordance with Article 460. Member States or competent authorities may require domestically authorised institutions, or a subset of those institutions, to maintain a higher(ca) In Article 412, paragraph 5 shall be replaced by the following: "As from [two years after the entry into force of the CRR Amending Regulation] Member States shall phase out national provisions in the area of liquidity coverage requirement up to 100 % until the binding minimum standard is fully introduced at a rate of 100 % in accordance with Article 460." s." Or. en (http://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex%3A32013R0575)
2018/02/05
Committee: ECON
Amendment 722 #
Proposal for a regulation
Article 1 – paragraph 1 – point 105
Regulation (EU) No 575/2013
Article 413 – paragraph 4
4. Member States may maintain or introduce national provisions in the area of stable funding requirements before binding minimum standards for the net stable funding requirements set out in paragraph 1 become applicable.As from [two years after the entry into force of the CRR Amending Regulation] Member States shall phase out national provisions in the area of stable funding requirements.
2018/02/05
Committee: ECON
Amendment 723 #
Proposal for a regulation
Article 1 – paragraph 1 – point 106
Regulation (EU) No 575/2013
Article 414
An institution that does not meet, or expects not to meet, the requirements set out in Article 412 or in Article 413(1), including during times of stress, shall immediately notify the competent authorities thereof and shall submit without undue delay to the competent authorities a plan for the timely restoration of compliance with the requirements set out in Article 412 or Article 413(1), as appropriate. Until compliance has been restored, the institution shall report the items referred to in Title II, III or IV, as appropriate, daily by the end of each day unless the competent authority authorises a lower reporting frequency and a longer reporting delay. Competent authorities shall only grant those authorisations based on the individual situation of an institution and taking into account the scale and complexity of the institution's activities. Competent authorities shall monitor the implementation of the restoration plan and shall require a more speedy restoration if appropriate.. Small and non-complex institutions within the meaning of Article 430a which have complied with at least 150 % of the liquidity coverage requirement within the meaning of Article 412 for the last six reporting dates shall be permitted, as from the subsequent reporting date, to carry out the continuous monitoring of their liquidity coverage requirement only on the reporting date in accordance with the technical implementation standards of Article 415. This provision applies as long as the liquidity coverage requirement of the institution does not fall below 150 % on two additional successive reporting dates.
2018/02/05
Committee: ECON
Amendment 724 #
Proposal for a regulation
Article 1 – paragraph 1 – point 107
Regulation (EU) No 575/2013
Article 415 – paragraph 3 – subparagraph 3
Until the full introduction of binding liquidity requirements,As from [two years after the entry into force of the CRR Amending Regulation] competent authorities may continushall cease to collect information through monitoring tools for the purpose of monitoring compliance with existing national liquidity standards.
2018/02/05
Committee: ECON
Amendment 725 #
Proposal for a regulation
Article 1 – paragraph 1 – point 107
Regulation (EU) No 575/2013
Article 415 – paragraph 3 – subparagraphs 4 a and 4 b (new)
Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1093/2010.. The Commission Implementing Regulation (EU) 2016/313 of 1 March 2016 with regard to additional monitoring metrics for liquidity reporting shall not apply to small institutions as defined in Article 430a if their refinancing is based on deposits with a high degree of granularity and if their assets are sufficiently diversified. The EBA shall issue regulatory technical standards to define “deposits with a high degree of granularity” and “sufficiently diversified assets” as condition for the exemption of small institutions from additional monitoring metrics for liquidity reporting.
2018/02/05
Committee: ECON
Amendment 763 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114
Regulation (EU) No 575/2013
Article 428 k – paragraph 2 – point c – point iii
(iii) financial customers;deleted
2018/02/05
Committee: ECON
Amendment 764 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114
Regulation (EU) No 575/2013
Article 428 k – paragraph 2 – point c a (new)
(ca) liabilities with a residual maturity of less than one year provided by financial customers;
2018/02/05
Committee: ECON
Amendment 775 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114
Regulation (EU) No 575/2013
Article 428 r – paragraph 1 – point a
(a) unencumbered assets eligible as Level 1 high quality liquid assets in accordance with Article 10 of Delegated Regulation (EU) 2015/61, excluding extremely high quality covered bonds referred to in point (f) of Article 10(1) of that Delegated Regulation , regardless of their compliance with the operational requirements as set out in Article 8 of that Delegated Regulation ;deleted
2018/02/05
Committee: ECON
Amendment 787 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114
Regulation (EU) No 575/2013
Article 428 s – point a a (new)
(aa) unencumbered assets eligible as Level 1 high quality liquid assets in accordance with Article 10 of Delegated Regulation (EU) 2015/61, excluding: (i) extremely high quality covered bonds referred to in point (f) of Article 10(1) of that Delegated Regulation , regardless of their compliance with the operational requirements as set out in Article 8 of that Delegated Regulation ; (ii) assets receiving a 0% RSF as specified in Article 428r
2018/02/05
Committee: ECON
Amendment 817 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114
Regulation (EU) No 575/2013
Article 428 u – paragraph 2
2. For all netting sets of derivative contracts that are not subject to margin agreements under which institutions post variation margins to their counterparties, institutions shall apply a 10% required stable funding factor to the absolute market value of those netting sets of derivative contracts, gross of any collateral posted, where those netting sets have a negative market value.deleted
2018/02/05
Committee: ECON
Amendment 831 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114
Regulation (EU) No 575/2013
Article 428 x – paragraph 2
2. For all netting sets of derivative contracts subject to margin agreements under which institutions post variation margins to their counterparties, institutions shall apply a 20% required stable funding factor to the absolute market value of those netting sets of derivative contracts, gross of any collateral posted, where those netting sets have a negative market value.
2018/02/05
Committee: ECON
Amendment 838 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114
Regulation (EU) No 575/2013
Article 428 y
Article 428y 25% required stable funding factor [...]deleted
2018/02/05
Committee: ECON
Amendment 839 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114
Regulation (EU) No 575/2013
Article 428 a a – point a
(a) unencumbered Level 2B securitisations referred to in point (b) of Article 13(14) of Delegated Regulation (EU) 2015/61, regardless of their compliance with the operational requirements and with the requirements on the composition of the liquidity buffer as set out in Articles 8 and 17 of that Delegated Regulation;deleted
2018/02/05
Committee: ECON
Amendment 841 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114
Regulation (EU) No 575/2013
Article 428 a c – point a
(a) unencumbered assets eligible as Level 2B assets in accordance with Article 12 of Delegated Regulation (EU) 2015/61, excluding Level 2B securitisations and high quality covered bonds referred to in points (a) and (e) of Article 12(1) of that Delegated Regulation, regardless of their compliance with the operational requirements and with the requirements on the composition of the liquidity buffer as set out in Articles 8 and 17 of that Delegated Regulation;
2018/02/05
Committee: ECON
Amendment 862 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 a (new)
Regulation (EU) No 575/2013
Part 6 – Title IV – Chapter 4 a (new)
(114a) In Part 6, Title IV, the following Chapter 4a is added: "CHAPTER 4a Available stable refinancing for the simplified net stable funding ratio SECTION 1 GENERAL PROVISIONS Article 428ah Calculation of the amount of available stable funding By derogation from Chapter 3 and unless otherwise specified in this Chapter, for small and non-complex institutions, the amount of available stable funding shall be calculated by multiplying the accounting value of various categories or types of liabilities and regulatory capital by the appropriate available stable funding factors to be applied under Section 2. The total amount of available stable funding shall be the sum of the weighted amounts of liabilities and regulatory capital."
2018/02/05
Committee: ECON
Amendment 863 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 b (new)
Regulation (EU) No 575/2013
Article 428 a i (new)
Article 428ai Residual maturity of a liability or regulatory capital 1. Unless otherwise specified in this Chapter, institutions shall take into account the residual contractual maturity of their liabilities and regulatory capital to determine the appropriate available stable funding factors to be applied under Section 2 of this Chapter. 2. Institutions shall take into account existing options to determine the residual maturity of a liability or of regulatory capital. They shall do so on the assumption that investors will redeem a call option at the earliest possible date. For options exercisable at the discretion of the institution, the institution and the competent authorities shall take into account reputational factors that may limit the institution’s ability not to exercise the option, considering in particular market expectations that institutions should redeem certain liabilities before their maturity. (sNSFR)
2018/02/05
Committee: ECON
Amendment 864 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 c (new)
Regulation (EU) No 575/2013
Article 428 a j (new)
SECTION 2 AVAILABLE STABLE FUNDING FACTORS Article 428aj 0% available stable funding factor Unless otherwise specified in this section, all liabilities without a stated maturity, including short positions and open maturity positions, shall be subject to a 0% available stable funding factor with the exception of the following: (a) deferred tax liabilities, which shall be treated in accordance with the nearest possible date on which such liabilities could be realised; (b) minority interests, which shall be treated in accordance with the term of the instrument concerned. Deferred tax liabilities and minority interests shall be subject to one of the following factors: (i) 0%, where the effective residual maturity of the deferred tax liability or minority interest is less than one year; (ii) 100%, where the effective residual maturity of the deferred tax liability or minority interest is one year or more. 2. The following liabilities shall be subject to a 0% available stable funding factor: (a) trade date payables arising from purchases of financial instruments, foreign currencies and commodities that are expected to settle within the standard settlement cycle or period that is customary for the relevant exchange or type of transaction, or that have failed to be settled, but are still expected to settle; (b) liabilities that are categorised as interdependent with assets in accordance with Article 428f; (c) liabilities with a residual maturity of less than one year provided by: (i) the ECB or the central bank of a Member State; (ii) the central bank of a third country; (iii) financial customers; (d) any other liabilities and capital items or instruments not referred to in Articles 428aj to 428am. 3. Institutions shall apply a 0% available stable funding factor to the absolute value of the difference, if negative, between the sum of market values across all netting sets with positive market value and the sum of market values across all netting sets with negative market value calculated in accordance with Article 428d. of this Regulation. The following rules shall apply to the calculation referred to in the first subparagraph: (a) variation margins received by institutions from their counterparties shall be deducted from the market value of a netting set with positive market value where the collateral received as variation margins qualifies as Level 1 assets under Title II of Delegated Regulation (EU) 2015/61, excluding extremely high quality covered bonds referred to in point (f) of Article 10(1) of Delegated Regulation (EU) 2015/61, and that institutions are legally entitled and operationally able to reuse; (b) all variation margin posted by institutions to their counterparties shall be deducted from the market value of a netting set with negative market value. (sNSFR)
2018/02/05
Committee: ECON
Amendment 865 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 d (new)
Regulation (EU) No 575/2013
Article 428 a k (new)
Article 428ak 50% available stable funding factor By way of derogation from Article 428k, the following liabilities shall be subject to a 50% available stable funding factor: liabilities with a residual maturity of less than one year provided by: (i) the central government of a Member State or a third country; (ii) regional governments or local authorities in a Member State or a third country; (iii) public sector entities of a Member State or a third country; (iv) multilateral development banks referred to in Article 117(2) and international organisations referred to in Article 118; (v) credit institutions as referred to in point (e) of Article 10(1) of Delegated Regulation (EU) 2015/61; (vi) non-financial corporate customers; (vii) credit unions authorised by a competent authority, personal investment companies and clients that are deposit brokers, with the exception of deposits received, that fulfil the criteria for operational deposits as set out in Article 27 of Delegated Regulation (EU) 2015/61. (sNSFR)
2018/02/05
Committee: ECON
Amendment 866 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 e (new)
Regulation (EU) No 575/2013
Article 428 a l (new)
Article 428al 90% available stable funding factor By way of derogation from Article 428aj, sight retail deposits and term retail deposits having a residual maturity of less than one year that fulfil the criteria set out in Articles 24 or 25 of Delegated Regulation (EU) 2015/61 shall be subject to a 90% available stable funding factor. (sNSFR)
2018/02/05
Committee: ECON
Amendment 867 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 f (new)
Regulation (EU) No 575/2013
Article 428 a m (new)
Article 428am 100% available stable funding factor By way of derogation from Article 428aj, the following liabilities and capital items and instruments shall be subject to a 100% available stable funding factor: (a) the Common Equity Tier 1 items of the institution before the adjustments required pursuant to Articles 32 to 35, the deductions pursuant to Article 36 and the application of the exemptions and alternatives laid down in Articles 48, 49 and 79; (b) the Additional Tier 1 items of the institution before the deduction of the items referred to in Article 56 and before Article 79 has been applied thereto; (c) the Tier 2 items of the institution before the deductions referred to in Article 66 and before the application of Article 79, having a residual maturity of one year or more, excluding any instruments with explicit or embedded options that, if exercised, would reduce the expected maturity to less than one year; (d) any other capital instruments of the institution with a residual maturity of one year or more, excluding any instruments with explicit or embedded options that, if exercised, would reduce the expected maturity to less than one year; (e) any other secured and unsecured borrowings and liabilities with a residual maturity of one year or more, including term deposits, unless otherwise specified in Articles 428aj to 428al. (sNSFR)
2018/02/05
Committee: ECON
Amendment 868 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 g (new)
Regulation (EU) No 575/2013
Part 6 – Title IV – Chapter 4 b (new) – Article 428 a n (new)
(114 g)In Part 6, Title IV, the following Chapter 4b is added: "CHAPTER 4b Required stable refinancing for the simplified calculation of the net stable funding ratio SECTION 1 GENERAL PROVISIONS Article 428an Simplified calculation of the amount of required stable funding 1. By derogation from Chapter 4 and unless otherwise specified in this Chapter, for small and non-complex institutions the amount of required stable funding shall be calculated by multiplying the accounting value of various categories or types of assets and off-balance sheet items by the appropriate required stable funding factors to be applied in accordance with Section 2. The total amount of required stable funding shall be the sum of the weighted amounts of assets and off- balance sheet items. 2. Assets that institutions have borrowed, including in secured lending transactions and capital market-driven transactions as defined in Article 192(2) and (3), that are accounted for in their balance sheet and on which they do not have beneficial ownership shall be excluded from the calculation of the amount of required stable funding. 3. Assets that institutions have lent, including in secured lending transactions and capital market driven transactions, that remain on their balance sheet and over which they retain beneficial ownership, shall be considered as encumbered assets for the purposes of this Chapter and shall be subject to appropriate required stable funding factors to be applied under Section 2 of this Chapter. Otherwise, these assets shall be excluded from the calculation of the amount of required stable funding. 4. The following assets shall be considered to be unencumbered: (a) assets included in a pool which are available for immediate use as collateral to obtain additional funding under committed or, where the pool is operated by a central bank, uncommitted but not yet funded credit lines available to the institution. Those assets shall include assets placed by a credit institution with the central institution in a cooperative network or institutional protection scheme. Institutions shall assume that assets in the pool are encumbered in order of increasing liquidity on the basis of the liquidity classification set out in Chapter 2 of Delegated Regulation (EU) 2015/61, starting with assets ineligible for the liquidity buffer; (b) assets that the institution has received as collateral for credit risk mitigation purposes in secured lending, secured funding or collateral exchange transactions and that the institution may dispose of; (c) assets attached as non-mandatory over-collateralisation to a covered bond issuance. 5. Institutions shall exclude assets associated with collateral recognised as variation margins posted in accordance with point (b) of Articles 428k(3) and 428ag(3) or as initial margins posted or as contributions to the default fund of a CCP in accordance with points (a) and (b) of Article 428af from other parts of calculation of the amount of required stable funding in accordance with this Chapter in order to avoid any double- counting. 6. Institutions shall include in the calculation of the amount of required stable funding financial instruments, foreign currencies and commodities for which a purchase order has been executed. They shall exclude from the calculation of the amount of required stable funding financial instruments, foreign currencies and commodities for which a sale order has been executed, provided that those transactions are not reflected as derivatives or secured funding transactions in the institutions' balance sheet and that these transactions will be reflected in the institutions' balance sheet when settled. 7. Competent authorities may determine required stable funding factors to be applied to off-balance sheet exposures that are not referred to in this Chapter to ensure that institutions hold an appropriate amount of available stable funding for the portion of those exposures that are expected to require funding within the one-year horizon of the net stable funding ratio. To determine those factors, competent authorities shall in particular take into account material reputational damage for the institution that could result from not providing that funding. Competent authorities shall report to EBA the types of off-balance sheet exposures for which they have determined required stable funding factors at least once a year. They shall include in that report an explanation of the methodology applied to determine those factors." (sNSFR)
2018/02/05
Committee: ECON
Amendment 869 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 h (new)
Regulation (EU) No 575/2013
Article 428 a o (new)
Article 428ao Residual maturity of an asset 1. Unless otherwise specified in this Chapter, institutions shall take into account the residual contractual maturity of their assets and off-balance sheet transactions when determining the appropriate required stable funding factors to be applied to their assets and off-balance sheet items under Section 2 of this Chapter. 2. For assets that are encumbered, the maturity used to determine the appropriate required stable funding factors to be applied under Section 2 of this Chapter shall be either the residual maturity of the asset or the maturity of the transaction being the source of encumbrance, whichever is the longest. An asset that has less than six months remaining in the encumbrance period shall be subject to the required stable funding factor to be applied under Section 2 of this Chapter to the same asset held unencumbered. 3. Where an institution re-uses or re- pledges an asset that was borrowed, including in secured lending transactions and capital market-driven transactions as defined in Article 192(2) and (3), and that is accounted for off balance sheet, the residual maturity of the transaction through which that asset has been borrowed and which is used to determine the required stable funding factor to be applied under Section 2 of this Chapter, shall be the residual maturity of the transaction through which the asset is re- used or re-pledged. 4. Institutions shall treat assets that have been segregated in accordance with Article 11(3) of Regulation (EU) No 648/2012 in accordance with their underlying exposure. Institutions shall however subject those assets to higher required stable funding factors depending on the term of encumbrance to be determined by competent authorities, who shall consider whether the institution can freely dispose or exchange such assets and the term of the liabilities to the institutions’ customers that generate this segregation requirement. 5. When calculating the residual maturity of an asset, institutions shall take options into account, based on the assumption that the issuer will exercise any option to extend maturity. For options exercisable at the discretion of the institution, the institution and competent authorities shall take into account reputational factors that may limit the institution’s ability not to exercise the option, in particular considering markets’ and clients’ expectations that the institution should extend certain assets at their maturity date. (sNSFR)
2018/02/05
Committee: ECON
Amendment 870 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 i (new)
Regulation (EU) No 575/2013
Article 428 a p (new)
SECTION 2 REQUIRED STABLE FUNDING FACTORS Article 428ap 0% required stable funding factor The following assets shall be subject to a 0% required stable funding factor: (a) unencumbered assets eligible as Level 1 high quality liquid assets in accordance with Article 10 of Delegated Regulation (EU) 2015/61, excluding extremely high quality covered bonds referred to in point (f) of Article 10(1) of that Delegated Regulation, regardless of their compliance with the operational requirements as set out in Article 8 of that Delegated Regulation; (b) all central bank reserves, held in the ECB or in the central bank of a Member State or of a third country, including required reserves and excess reserves; (c) all claims on the ECB, the central bank of a Member State or of a third country with a residual maturity of less than one year; (d) assets that are categorised as interdependent with liabilities in accordance with Article 428f. (sNSFR)
2018/02/05
Committee: ECON
Amendment 871 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 j (new)
Regulation (EU) No 575/2013
Article 428 a q (new)
Article 428aq 5% required stable funding factor The undrawn portion of irrevocable and conditionally revocable committed credit and liquidity facilities as they are referred to in Article 31(1) of Delegated Regulation (EU) 2015/61 receive a required stable funding factor of 5%. (sNSFR)
2018/02/05
Committee: ECON
Amendment 872 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 k (new)
Regulation (EU) No 575/2013
Article 428 a r (new)
Article 428ar 10% required stable funding factor 1. Unencumbered assets eligible as Level 1 extremely high quality covered bonds in accordance with point (f) of Article 10(1) of Delegated Regulation(EU) 2015/61 shall be subject to a 10% required stable funding factor, regardless of their compliance with the operational requirements and with the requirements on the composition of the liquidity buffer as set out in Articles8 and 17 of that Delegated Regulation 2. For all netting sets of derivative contracts that are not subject to margin agreements under which institutions post variation margins to their counterparties, institutions shall apply a 10% required stable funding factor to the absolute market value of those netting sets of derivative contracts, gross of any collateral posted, where those netting sets have a negative market value. (sNSFR (supporting the EP draft report with one deviation based on input received from Deutscher Sparkassen- und Giroverband (DSGV): Unencumbered assets eligible as Level 1 extremely high quality covered bonds are added to the 10% RSF category which is more conservatively calibrated than the 7% as required by Basel).)
2018/02/05
Committee: ECON
Amendment 873 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 l (new)
Regulation (EU) No 575/2013
Article 428 a s (new)
Article 428as 15% required stable funding factor The following assets and off-balance sheet items shall be subject to a 15% required stable funding factor: (a) unencumbered assets eligible as Level 2A assets in accordance Article 11 of Delegated Regulation (EU) 2015/61, and unencumbered shares or units in CIUs in accordance with point (a) to (d) of Article 15(2) of Delegated Regulation (EU) 2015/61, regardless of their compliance with the operational requirements and with the requirements on the composition of the liquidity buffer as set out in Articles 8 and 17 of that Delegated Regulation; (b) trade finance off-balance sheet related products as referred to in Article 111(1) of this Regulation and trade finance on-balance sheet related products, with a residual maturity of less than one year. (sNSFR)
2018/02/05
Committee: ECON
Amendment 874 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 m (new)
Regulation (EU) No 575/2013
Article 428 a t (new)
Article 428at 20% required stable funding factor The following assets shall be subject to a 20% required stable funding factor: For all netting sets of derivative contracts subject to margin agreements under which institutions post variation margins to their counterparties, institutions shall apply a 20% required stable funding factor to the absolute market value of those netting sets of derivative contracts, gross of any collateral posted, where those netting sets have a negative market value. (sNSFR)
2018/02/05
Committee: ECON
Amendment 875 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 n (new)
Regulation (EU) No 575/2013
Article 428 a u (new)
Article 428au 50% required stable funding factor The following assets shall be subject to a 50% required stable funding factor: (a) Secured and unsecured loans with a residual maturity of less than one year and provided that they are encumbered less than one year, (b) Assets eligible as Level 2B assets in accordance Article 12 of Delegated Regulation (EU) 2015/61, and shares or units in CIUs in accordance with point (e) to (h) of Article 15(2) of Delegated Regulation (EU) 2015/61, regardless of their compliance with the operational requirements and with the requirements on the composition of the liquidity buffer as set out in Articles 8 and 17 of that Delegated Regulation, provided that they are encumbered less than one year, (c) any other assets with a residual maturity of less than one year, unless otherwise specified in Articles 428ap to 428at of this Regulation. (sNSFR)
2018/02/05
Committee: ECON
Amendment 876 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 o (new)
Article 428av 85% required stable funding factor The following assets shall be subject to a 85% required stable funding factor: (a) any assets, including cash, posted as initial margin for derivatives contracts. (b) unencumbered loans with a residual maturity of one year or more, excluding loans to financial customers, which are not past due for more than 90 days (c) trade finance on-balance sheet related products, with a residual maturity of one year or more; (d) unencumbered securities with a residual maturity of one year or more that are not in default in accordance with Article 178 and that are not eligible as liquid assets in accordance with Articles 10 to 13 of Delegated Regulation (EU) 2015/61; (e) unencumbered exchange-traded equities that are not eligible as Level 2B assets in accordance with Article 12 of Delegated Regulation (EU) 2015/61; (f) physical traded commodities, including gold but excluding commodity derivatives. (sNSFR)
2018/02/05
Committee: ECON
Amendment 877 #
Proposal for a regulation
Article 1 – paragraph 1 – point 114 p (new)
Article 428aw 100% required stable funding factor 1. The following assets shall be subject to a 100% required stable funding factor: (a) any assets encumbered for a residual maturity of one year or more; (b) any assets other than those referred to in Articles 428ap to 428av, including loans to financial customers having a residual contractual maturity of one year or more, non-performing loans, items deducted from regulatory capital, fixed assets, non-exchange traded equities, retained interest, insurance assets, defaulted securities. 2. By the way of a derogation from point (a) of paragraph 1, assets that are encumbered for one year or more for non- standard, temporary operations conducted by the ECB or the central bank of a Member State in order to achieve its mandate in a period of market-wide financial stress or exceptional macroeconomic challenges, may receive a reduced required stable funding factor. Competent authorities shall determine, with the approval of the relevant central bank, the appropriate required stable funding factor to be applied to those encumbered assets, which shall not be lower than the required stable funding factor that would apply to those assets if they were held unencumbered under this Section. 3. Institutions shall apply a 100% required stable funding factor to the difference, if positive, between the sum of market values across all netting sets with positive market value and the sum of market values across all netting sets with negative market value calculated in accordance with Article 428d. The following rules shall apply to the calculation referred to in the first subparagraph: (a) variation margins received by institutions from their counterparties shall be deducted from the market value of a netting set with positive market value where the collateral received as variation margins qualifies as Level 1 assets in accordance with Title II of Delegated Regulation (EU) 2015/61, excluding extremely high quality covered bonds referred to in point (f) of Article 10(1) of that Delegated Regulation, and that institutions would be legally entitled and operationally able to reuse; (b) all variation margin posted by institutions to their counterparties shall be deducted from the market value of a netting set with negative market value. (sNSFR)
2018/02/05
Committee: ECON
Amendment 879 #
Proposal for a regulation
Article 1 – paragraph 1 – point 115
Regulation (EU) No 575/2013
Article 429 – paragraph 3
3. For the purposes of paragraph 2, the capital measure shall be the Common Equity Tier 1 capital.
2018/02/05
Committee: ECON
Amendment 911 #
Proposal for a regulation
Article 1 – paragraph 1 – point 115
Regulation (EU) No 575/2013
Article 429 b – paragraph 4
4. By way of derogation from point (d) of paragraph 1, institutions may calculate the exposure value of cash receivable and cash payable under an SFT withdeleted the transactions have the same the right to set off the same counterparty on a net basis only where all the following conditions are met: (a) explicit final settlement date; (b) owed to the counterparty with the amount owed by the counterparty is legally enforceable in all of the following situations: (i) (ii) and bankruptcy; (c) on a net basis, to settle simultaneously, or the transactions are subject to a settlement mechanism that results in the functional equivalent of net in the normal course of business; in the event of default, insolvency the counterparties intend to settlement.
2018/02/05
Committee: ECON
Amendment 912 #
Proposal for a regulation
Article 1 – paragraph 1 – point 115
Regulation (EU) No 575/2013
Article 429 b – paragraph 5
5. For the purposes of point (c) of paragraph 4, institutions may conclude that a settlement mechanism results in the functional equivalent of net settlement only where, on the settlement date, the net result of the cash flows of the transactions under that mechanism is equal to the single net amount under net settlement and all of the following conditions are met: (a) the transactions are settled through the same settlement system; (b) supported by cash or intraday credit facilities intended to ensure that the settlement of the transactions will occur by the end of the business day; (c) securities legs of the SFTs do not interfere with the completion of the net settlement of the cash receivables and payables. The condition in point (c) of the first subparagraph is met only where the failure of any SFT in the settlement mechanism may delay settlement of only the matching cash leg or may create an obligation to the settlement mechanism, supported by an associated credit facility. Where there is a failure of the securities leg of an SFT in the settlement mechanism at the end of the window for settlement in the settlement mechanism, institutions shall split out this transaction and its matching cash leg from the netting set and treat them on a gross basis.deleted the settlement arrangements are any issues arising from the
2018/02/05
Committee: ECON
Amendment 914 #
Proposal for a regulation
Article 1 – paragraph 1 – point 115
Regulation (EU) No 575/2013
Article 429 c – paragraph 3 – introductory part
3. For the purposes of paragraph 1 of this Article, institutions calculating the replacement cost of derivative contracts in accordance with Article 275 mayshall not recognise only collateral received in cash from their counterparties as the variation margin referred to in Article 275, where the applicable accounting framework has not already recognised the variation margin as a reduction of the exposure value and where all of the following conditions are metther or not netting is permitted under the applicable accounting framework:
2018/02/05
Committee: ECON
Amendment 915 #
Proposal for a regulation
Article 1 – paragraph 1 – point 115
Regulation (EU) No 575/2013
Article 429 c – paragraph 3 – point a
(a) for trades not cleared through a QCCP, the cash received by the recipient counterparty is not segregated;deleted
2018/02/05
Committee: ECON
Amendment 918 #
Proposal for a regulation
Article 1 – paragraph 1 – point 115
Regulation (EU) No 575/2013
Article 429 c – paragraph 3 – point c
(c) the variation margin received is in a currency specified in the derivative contract, governing master netting agreement, credit support annex to the qualifying master netting agreement or as defined by any netting agreement with a QCCP;deleted
2018/02/05
Committee: ECON
Amendment 919 #
Proposal for a regulation
Article 1 – paragraph 1 – point 115
Regulation (EU) No 575/2013
Article 429 c – paragraph 3 – point d
(d) the variation margin received is the full amount that would be necessary to extinguish the mark-to-market exposure of the derivative contract subject to the threshold and minimum transfer amounts that are applicable to the counterparty;deleted
2018/02/05
Committee: ECON
Amendment 920 #
Proposal for a regulation
Article 1 – paragraph 1 – point 115
Regulation (EU) No 575/2013
Article 429 c – paragraph 3 – point e
(e) the derivative contract and the variation margin between the institution and the counterparty to that contract are covered by a single netting agreement that the institution may treat as risk-reducing in accordance with Article 295.deleted
2018/02/05
Committee: ECON
Amendment 921 #
Proposal for a regulation
Article 1 – paragraph 1 – point 115
Regulation (EU) No 575/2013
Article 429 c – paragraph 3 – subparagraph 2
For the purposes of the first subparagraph, where an institution provides cash collateral to a counterparty and that collateral meets the conditions laid down in points (a) to (e) of that subparagraph, the institution shall consider that collateral as the variation margin posted to the counterparty and shall include it in the calculation of replacement cost.deleted
2018/02/05
Committee: ECON
Amendment 923 #
Proposal for a regulation
Article 1 – paragraph 1 – point 115
Regulation (EU) No 575/2013
Article 429 c – paragraph 3 – subparagraph 3
For the purposes of point (b) of the first subparagraph, an institution shall be considered to have met the condition therein where the variation margin is exchanged on the morning of the trading day following the trading day on which the derivative contract was stipulated, provided that the exchange is based on the value of the contract at the end of the trading day on which the contract was stipulated.deleted
2018/02/05
Committee: ECON
Amendment 924 #
Proposal for a regulation
Article 1 – paragraph 1 – point 115
Regulation (EU) No 575/2013
Article 429 c – paragraph 3 – subparagraph 4
For the purposes of point (d) of the first subparagraph, where a margin dispute arises, institutions may recognise the amount of non-disputed collateral that has been exchangdeleted.
2018/02/05
Committee: ECON
Amendment 925 #
Proposal for a regulation
Article 1 – paragraph 1 – point 115 (new)
Regulation (EU) No 575/2013
Article 429 c – paragraph 3 a (new)
3a. Where any collateral amount received reduces the amount of derivatives assets under the applicable accounting framework, institutions shall reverse that reduction.
2018/02/05
Committee: ECON
Amendment 926 #
Proposal for a regulation
Article 1 – paragraph 1 – point 115
Regulation (EU) No 575/2013
Article 429 c – paragraph 4
4. For the purposes of paragraph 1 of this Article, institutions shall not include collateral received in the calculation of NICA as defined in point 12a of Article 272, except in the case of derivatives contracts with clients where those contracts are cleared by a QCCP.deleted
2018/02/05
Committee: ECON
Amendment 932 #
Proposal for a regulation
Article 1 – paragraph 1 – point 115
Regulation (EU) No 575/2013
Article 429 c – paragraph 5
5. For the purposes of paragraph 1 of this Article, institutions shall set the value of the multiplier used in the calculation of the potential future exposure in accordance with Article 278(1) to one, except in the case of derivatives contracts with clients where those contracts are cleared by a QCCP.
2018/02/05
Committee: ECON
Amendment 935 #
Proposal for a regulation
Article 1 – paragraph 1 – point 115
Regulation (EU) No 575/2013
Article 429 g a (new)
Article 429ga Leverage exposure floor The total leverage ratio exposure measure of an institution shall be no lower than its total assets disclosed in published financial statements.
2018/02/05
Committee: ECON
Amendment 937 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 430 a – point 4
(4) "small and non-complex institution" means an institution which fulfils all of the following criteria: (a) the value of the assets of which is on average equal to or less than EUR 1.5 billion over the four-year period immediately preceding the current annual disclosure period. financial year; (b) the resolution assessment in accordance with Articles 15 and 16 of Directive 2014/59/EU concludes that the liquidation of the institution in normal insolvency proceedings is feasible and credible; (c) the institution is not a large institution or large subsidiary as defined in point (1) or (2); (d) its trading activities are classified as small within the meaning of Article 94; (e) the total value of its derivative positions is less than or equal to 2% of its total on- and off-balance sheet assets, where only derivatives which qualify as positions held with trading intent are included in calculating the derivative positions; (f) the institution does not use internal models for calculating own funds requirements; (g) the institution’s total CET 1 ratio exceeds 15% and the institution’s leverage ratio exceeds 6%. (Definition of small and non-complex institutions benefitting from various simplified procedures in CRR and CRD)
2018/02/05
Committee: ECON
Amendment 947 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 433 b – paragraph 2 – introductory part
2. By way of derogation from paragraph 1, competent authorities may waive for small institutions that are non- listed institutions shall disclose the following information at least on an annual basis:the requirement to issue any disclosure reports.
2018/02/05
Committee: ECON
Amendment 949 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 433 b – paragraph 2 – point a
(a) the information referred to in points (a), (e) and (f) of Article 435(1);deleted
2018/02/05
Committee: ECON
Amendment 951 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 433 b – paragraph 2 – point b
(b) the information referred to in points (a), (b) and (c) of Article 435(2);deleted
2018/02/05
Committee: ECON
Amendment 952 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 433 b – paragraph 2 – point c
(c) the information referred to in Article 450;deleted
2018/02/05
Committee: ECON
Amendment 955 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 433 b – paragraph 2 – point d
(d) the key metrics referred to in Article 447.deleted
2018/02/05
Committee: ECON
Amendment 957 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 433 c – paragraph 2 – introductory part
2. By way of derogation from paragraph 1, other institutions that are non- listed institutions shall disclose the information outlined below and, at least, with the following frequency:
2018/02/05
Committee: ECON
Amendment 958 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 433 c – paragraph 2 – point a
(a) the information referred to in Articles 435 and 450, in point (a) of Article 437, point (c) of Article 438, points (e) and (f) of Article 439 , point (c) and (e) of point (1) and point (3) of Article 442, point (e) of Article 444, points (a) and (b) of Article 448, points (k) to (m) of Article 449, points (a) and (b) of Article 451, Article 451a(2) and (3), point (f) of Article 452, point (f) of Article 453 and point (a) of Article 455 (2points (a), (e) and (f) of Article 435(1) on an annual basis;
2018/02/05
Committee: ECON
Amendment 960 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 433 c – paragraph 2 – point b
(b) the key metrics referred to in Article 447 on an semi-annual basis.;
2018/02/05
Committee: ECON
Amendment 961 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 433 c – paragraph 2 – point b a (new)
(ba) the information referred to in Article 450 on an annual basis;
2018/02/05
Committee: ECON
Amendment 962 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116 (new)
Regulation (EU) No 575/2013
Article 433 c – paragraph 2 – point b b (new)
(bb) the information referred to in points (a), (b) and (c) of Article 435(2) every two years.
2018/02/05
Committee: ECON
Amendment 965 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 438 – point b a (new)
(ba) The amounts and compliance dates of any guidance on additional own funds issued in accordance with Article 104b of Directive 2013/36/EU;
2018/02/05
Committee: ECON
Amendment 971 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 443 a (new)
The following new Article 443a is inserted: "Article 443a Disclosure of non-cash collateral re-use 1. Credit institutions shall disclose information concerning the total market value of their re-used non-cash collateral, with breakdowns by type of collateral and jurisdiction of the issuer of the security used as collateral, in accordance with the measure developed by the EBA, as referred to in paragraph 2. 2. EBA shall develop draft regulatory technical standards to specify the measure of non-cash collateral re-use to be used by credit institutions as referred to in paragraph 1. EBA shall submit those draft regulatory technical standards to the Commission by 1 February 2020. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles10 to 14 of regulation (EU) No 1093/2010."
2018/02/05
Committee: ECON
Amendment 972 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
The following new Article 443b is inserted: "Article 443b Disclosure of data on the use of synthetic leverage 1. Credit institutions shall disclose data on their use of leverage created synthetically, through the use of derivatives, in accordance with the methodology developed by the EBA, as referred to in paragraph 2. 2. EBA shall develop draft regulatory technical standards to specify the methodology to be used by credit institutions to calculate their synthetic leverage, as referred to in paragraph 1. EBA shall submit those draft regulatory technical standards to the Commission by 1 February 2020. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles10 to 14 of regulation (EU) No 1093/2010."
2018/02/05
Committee: ECON
Amendment 983 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 448 a (new)
Article 448a Disclosure of environmental, social and governance risk 1. From [1 year after entry into force of this Regulation], institutions shall disclose the following information related to environmental, social and governance risks in accordance with Article 98 of Directive 2013/36/EU: (a) A description of specific environmental, social and governance risks, which could arise in the short-, medium-, or long-term and could have a material and financial impact on the institution; (b) A description of the processes that are used to determine which risks could have a material or financial impact on the institution and how these are integrated into the overall risk management; (c) A description of significant concentrations of credit exposures against greenhouse gas-related assets, including risks related to the depreciation of assets, due to regulatory change if these are material; (d) A description of the impact of environmental, social and governance risks on the business, strategy and financial planning of the institution, if these are material; (e) A description of the processes that the institution uses to identify, evaluate and manage these risks; (f) The parameters that the institution used to evaluate the impact of short-, medium- and long-term environmental, social and governance risks on lending and financial intermediary services, if these are material; (g) A description of the role of the board with regard to the evaluation and management of environmental, social and governance risks.” (h) Whether the fiduciary duty within the institution encompasses ESG factors (i) Whether model contracts with clients incorporate the transmission of the beneficiary interest as well as clear expectations on the identification and integration of ESG risks (j) whether a the do-no-harm principle according to ESG risk analysis is effectively integrated by the institution management; 2. For the purpose of paragraph 1 EBA shall develop by 1 June 2020 draft regulatory technical standards to specify further details on the disclosure requirements provided for in paragraph 1. Power is conferred on the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
2018/02/05
Committee: ECON
Amendment 987 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 449 a (new)
Article 449a (new) Disclosure of exposures to shadow banking entities 1. Credit institutions shall disclose information concerning their individual exposures to shadow banking entities, all potential risks to the institution arising from those exposures, and the potential impact of those risks, as well as the supervisory treatment of their shadow banking counterparties. 2. EBA shall develop draft regulatory technical standards to further specify the information that credit institutions must disclose, as referred to in paragraph 1. EBA shall submit those draft regulatory technical standards to the Commission by 1 February 2020. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles10 to 14 of regulation (EU) No 1093/2010.
2018/02/05
Committee: ECON
Amendment 988 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 449 b (new)
Article 449b 1. By 1 January 2021, credit institutions shall include in their annual financial statements accurate comprehensive and detailed data on the contribution of complex structured finance transactions to their earnings before interest, taxes, depreciation, and amortization (EBITDA) and earnings after taxes (EAT); 2. EBA shall develop draft regulatory technical standards to further specify the information referred to in paragraph 1 that credit institutions must disclose. For the purpose of defining complex structured finance transactions, the following characteristics shall be taken into account: (a) a non-standard product; (b) generating higher than normal returns or significant fees; (c) involving the creation and use of Special Purpose Entities and/or the combination of cash and derivative products; (d) involving exposure to elevated levels of market /credit risk; (e) lacking economic substance, or (f) being designed or used primarily for questionable accounting or tax objectives (i.e. transactions executed at year-end or at the end of a reporting period for the customer); EBA shall submit those draft regulatory technical standards to the Commission by 1 December 2019; 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.
2018/02/05
Committee: ECON
Amendment 991 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 451 – paragraph 1 – point b
(b) a breakdown of the total exposure measure, as well as a reconciliationn explanation of the differences in measurement between the components of the total exposure measure withand the relevant informationcorresponding balance sheet and off-balance sheet items disclosed in published financial statements;
2018/02/05
Committee: ECON
Amendment 993 #
Proposal for a regulation
Article 1 – paragraph 1 – point 117 a (new)
Regulation (EU) No 575/2013
Article 458 – paragraphs 2 and 4
(117 a)In Article 458, paragraphs 2 and 4 are replaced by the following: "Article 458 Macroprudential or systemic risk identified at the level of a Member State 1. Member States shall designate the authority in charge of the application of this Article. This authority shall be the competent authority or the designated authority. 2. Where the authority determined in accordance with paragraph 1 identifies changes in the intensity of macroprudential or systemic risk in the financial system with the potential to have serious negative consequences to the financial system and the real economy in a specific Member State and which that authority considers would better be addressed by means of stricter national measures, it shall notify the European Parliament, the Council, the Commission, the ESRB and EBA of that fact and submit relevant quantitative or qualitative evidence of all of the following: (a) the changes in the intensity of macroprudential or systemic risk; (b) the reasons why such changes could pose a threat to financial stability at national level; (c) and 164 of this Regulation and Articles 101, 103, 104, 105, 133, and 136 of Directive 2013/36/EU cannot adequately address the macroprudential or systemic risk identified, taking into account the relative effectiveness of those measures;a justification of why Articles 124 (dc) draft national measures for domestically authorised institutions, or a subset of those institutions, intended to mitigate the changes in the intensity of risk and concerning: (i) the level of own funds laid down in Article 92; (ii) the requirements for large exposures laid down in Article 392 and Article 395 to 403; (iii) the public disclosure requirements laid down in Articles 431 to 455; (iv) the level of the capital conservation buffer laid down in Article 129 of Directive 2013/36/EU; (v) liquidity requirements laid down in Part Six; (vi) risk weights for targeting asset bubbles in the residential property and commercial immovable property sector; or (vii) intra financial sector exposures; (ed) an explanation as to why the draft measures are deemed by the authority determined in accordance with paragraph 1 to be suitable, effective and proportionate to address the situation; and (fe) an assessment of the likely positive or negative impact of the draft measures on the internal market based on information which is available to the Member State concerned. (f) an explanation as to how the outcome of the coordination mechanism between national designated authorities and the ECB as set out in Article 5(4) of Council Regulation (EU) No 1024/2013, have been considered in the draft national measures. 3. When authorised to apply national measures in accordance with this Article, the authorities determined in accordance with paragraph 1 shall provide relevant competent authorities or designated authorities in other Member States with all relevant information. 4. The power to adopt an implementing act to reject the draft national measures referred to in point (d) of paragraph 2 is conferred on the Council, acting by qualified majority, on a proposal from the Commission. Within one month of receiving the notification referred to in paragraph 2, the ESRB and EBA shall provide their opinions on the points mentioned in that paragraph to the Council, the Commission and the Member State concerned. Taking utmost account of the opinions referred to in the second subparagraph and if there is robust, strong and detailed evidence that the measure will have a negative impact on the internal market that outweighs the financial stability benefits resulting in a reduction of the macroprudential or systemic risk identified, the Commission may, within one month, propose to the Council an implementing act to reject the draft national measures. In the absence of a Commission proposal within that period of one month, the Member State concerned may immediately adopt the draft national measures for a period of up to two years or until the macroprudential or systemic risk ceases to exist if that occurs sooner. The Council shall decide on the proposal by the Commission within one month after receipt of the proposal and state its reasons for rejecting or not rejecting the draft national measures. The Council shall only reject the draft national measures if it considers that one or more of the following conditions are not complied with: (a) the changes in the intensity of macroprudential or systemic risk are of such nature as to pose risk to financial stability at national level; (b) Regulation and Articles 101, 103, 104, 105, 133, and 136 of Directive 2013/36/EU cannot adequately address the macroprudential or systemic risk identified, taking into account the relative effectiveness of those measures; (cArticles 124 and 164 of this (b) the draft national measures are more suitable to address the identified macroprudential or systemic risk and do not entail disproportionate adverse effects on the whole or parts of the financial system in other Member States or in the Union as a whole, thus forming or creating an obstacle to the functioning of the internal market; (dc) the issue concerns only one Member State; and (ed) the risks have not already been addressed by other measures in this Regulation or in Directive 2013/36/EU. The assessment of the Council shall take into account the opinion of the ESRB and EBA and shall be based on the evidence presented in accordance with paragraph 2 by the authority determined in accordance with paragraph 1. In the absence of a Council implementing act to reject the draft national measures within one month after receipt of the proposal by the Commission, the Member State may adopt the measures and apply them for a period of up to two years or until the macroprudential or systemic risk ceases to exist if that occurs sooner." (http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=FR)Or. en
2018/02/05
Committee: ECON
Amendment 1002 #
Proposal for a regulation
Article 1 – paragraph 1 – point 120 – point a a (new)
Regulation (EU) No 575/2013
Article 493 – paragraph 3
3. […] (aa) paragraph 3 is deleted; deleted Or. en (http://eur-lex.europa.eu/legal- content/EN/TXT/PDF/?uri=CELEX:32013R0575&qid=1516804302212&from=EN)
2018/02/05
Committee: ECON
Amendment 1012 #
Proposal for a regulation
Article 1 – paragraph 1 – point 123
Regulation (EU) No 575/2013
Article 497 – paragraph 1 – point b – point ii
(ii) fivetwo years after the date of submission of the application.
2018/02/05
Committee: ECON
Amendment 1017 #
Proposal for a regulation
Article 1 – paragraph 1 – point 126
Regulation (EU) No 575/2013
Article 501 – paragraph 1 – point ii
(ii) if E' > EUR 1 500 000 and E' <= EUR 2 500 000, RW* = min {RW; EUR 1 500 000}0.7612 + max {0; RW – 1 500 000}0.85;
2018/02/05
Committee: ECON
Amendment 1021 #
Proposal for a regulation
Article 1 – paragraph 1 – point 127
Regulation (EU) No 575/2013
Article 501a
Article 501a [...]deleted
2018/02/05
Committee: ECON
Amendment 1038 #
Proposal for a regulation
Article 1 – paragraph 1 – point 127
2. For the purposes of paragraph 1(e), the cash flows generated shall not be considered predictable unless a substantial part of the revenues satisfies the following conditions: (a) met: (i) based; (ii) of-return regulation; (iii) the revenues are subject to a take- or-pay contract; (iv) and the price shall independently meet onedeleted one of the following criteria is the revenues are availability- the revenues are subject to a rate- the level of output ofr the following criteria: – – –usage it is resgult of low demand risk; (b) are not funded by payments from a large number of users, the party which agrees to purchase the goods or services provided by the obligor shall be one of the following: (i) government or local authority; (ii) credit quality step of at least 3; (iii) a corporate entity with an ECAI rating with a credit quality step of at least 3; (iv) without a significant change in the level and timing of revenues.ated, it is contractually fixed, it is sufficiently predictable as a where the revenues of the obligor a central government, regional a PSE with an ECAI rating with a an entity that is replaceable
2018/02/05
Committee: ECON
Amendment 1042 #
Proposal for a regulation
Article 1 – paragraph 1 – point 127
Regulation (EU) No 575/2013
Article 501 a – paragraph 3
3. Institutions shall report to competent authorities every 6 months on the total amount of exposures to infrastructure project entities calculated in accordance with this Article.deleted
2018/02/05
Committee: ECON
Amendment 1043 #
Proposal for a regulation
Article 1 – paragraph 1 – point 127
Regulation (EU) No 575/2013
Article 501 a – paragraph 4
4. The Commission shall, by [three years after the entry into force] report on the impact of the own funds requirements laid down in this Regulation on lending to infrastructure project entities and shall submit that report to the European Parliament and to the Council, together with a legislative proposal, if appropriate.deleted
2018/02/05
Committee: ECON
Amendment 1044 #
Proposal for a regulation
Article 1 – paragraph 1 – point 127
Regulation (EU) No 575/2013
Article 501 a – paragraph 5
5. For the purpose of paragraph 4, EBA shall report on the following to the Commission: (a) trends and conditions in markets for infrastructure lending and project finance over the period referred to in paragraph 4; (b) an analysis of the effective riskiness of entities referred to in paragraph 1 (b) of paragraph 1 over a full economic cycle; (c) requirements laid down in this Regulation with the outcomes of the analysis under points (a) and (b).deleted an analysis of the evolution of the the consistency of own funds
2018/02/05
Committee: ECON
Amendment 1047 #
Proposal for a regulation
Article 1 – paragraph 1 – point 127
Regulation (EU) No 575/2013
Article 501 b – paragraph 1
1. Until [date of application + 3 years], institutions that use the approaches set out in Chapters 1a and 1b, Title IV, Part Three to calculate the own funds requirement for market risks shall multiply their own funds requirements for market risks calculated under these approaches by a factor of 65%.deleted
2018/02/05
Committee: ECON
Amendment 1069 #
Proposal for a regulation
Article 1 – paragraph 1 – point 127 a (new)
Regulation (EU) No 575/2013
Article 503 a (new)
(127a) The following Article 503a is inserted: "Article 503a Review of preferential capital requirements The Commission shall, by 30 June 2019, and every three years thereafter, after consulting EBA, report to the European Parliament and to the Council, together with any appropriate proposals, on whether the preferential risk weights laid down in this Regulation and the own funds requirements for specific risk in this Regulation are adequate for all the instruments that qualify for these treatments and whether the criteria applied are appropriate."
2018/02/05
Committee: ECON
Amendment 1083 #
Proposal for a regulation
Article 1 – paragraph 1 – point 130 a (new)
Regulation (EU) No 575/2013
Article 513
(130a) Article 513 is replaced as follows: Article 513 "Macroprudential rules 1. By 30 June 20149, and every three years thereafter, the Commission shall, after consulting the ESRB and EBA, review whether the macroprudential rules contained in this Regulation and Directive 2013/36/EU are sufficient to mitigate systemic risks in sectors, regions and Member States including assessing: (a) whether the current macroprudential tools in this Regulation and Directive 2013/36/EU are effective, efficient and transparent; (b) whether the coverage and the possible degrees of overlap between different macroprudential tools for targeting similar risks in this Regulation and Directive 2013/36/EU are adequate and, if appropriate, propose new macroprudential rules; (c) how internationally agreed standards for systemic institutions interacts with the provisions in this Regulation and Directive 2013/36/EU and, if appropriate, propose new rules taking into account those internationally agreed standards. 2(d) whether borrower-based instruments, such as limits on loan-to- value (LTV), loan-to-income (LTI) or debt service-to-income (DSTI) ratios, should be added to the macroprudential tools in this Regulation and Directive 2013/36/EU to complement capital-based instruments and to allow for a harmonised use of the instruments in the Single Market; (e) whether a systemic surcharge in the Leverage Ratio should be considered, potentially with different calibration levels that depend on the systemic importance of the institutions; (f) how reciprocity of exposure-based macroprudential measures can be made mandatory as a general rule; (g) how relevant EU and national macroprudential authorities can be mandated with tools to address new emerging systemic risks arising from the non-bank sector, in particular from derivatives and securities financing transactions (SFT) markets, the asset management sector and the insurance sector. (h) how the present voluntary ESRB framework on reciprocity can be extended and whether a mandatory reciprocity mechanism should be considered for macroprudential capital buffers whose recognition is currently voluntary. By 31 December 20149, and every three years thereafter, the 2. Commission shall, on the basis of the consultation with the ESRB and EBA, report to the European Parliament and the Council on the assessment referred to in paragraph 1 and, where appropriate, submit a legislative proposal to the European Parliament and the Council." Or. en (http://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex%3A32013R0575)
2018/02/05
Committee: ECON
Amendment 1088 #
Proposal for a regulation
Article 1 – paragraph 1 – point 130 b (new)
Regulation (EU) No 575/2013
Article 514 a (new)
(130 b)The following new Article 514a is inserted: "Article 514a Based on the information provided under Article 443a (new), the Commission shall submit by 31 December 2020 a report on the appropriateness and the impact of setting aggregate limits on the reuse of non-cash collateral. Where appropriate, the report shall be accompanied by a legislative proposal on the introduction of aggregate limits on the reuse of non-cash collateral."
2018/02/05
Committee: ECON
Amendment 1100 #
Proposal for a regulation
Annex – point 1 a (new)
(1a) the following new Annex III a is inserted: "Undertakings that are excluded from the definition of shadow banking entities 1. undertakings included in consolidated supervision on the basis of the consolidated situation of an institution as defined in Article 4(1)(47) of this Regulation. 2. undertakings which are supervised on a consolidated basis by a third country competent authority pursuant to the law of a third country which applies prudential and supervisory requirements that are at least equivalent to those applied in the Union. 3. undertakings which are not within the scope of points (1) and (2) but which are: (a) credit institutions; (b) investment firms; (c) third country credit institutions if the third country applies prudential and supervisory requirements to that institution that are at least equivalent to those applied in the Union; (d) recognised third country investment firms; (e) entities which are financial institutions authorised and supervised by the competent authorities or third country competent authorities and subject to prudential requirements comparable to those applied to institutions in terms of robustness where the institution’s exposure(s) to the entity concerned is treated as an exposure to an institution pursuant to Article 119(5) of this Regulation; (f) entities referred to in points (2) to (23) of Article 2(5) of Directive 2013/36/EU; (g) entities referred to in Article 9(2) of Directive 2013/36/EU; (h) insurance holding companies, insurance undertakings, reinsurance undertakings and third country insurance undertakings and third-country reinsurance undertakings where the supervisory regime of the third country concerned is deemed equivalent; (i) undertakings excluded from the scope of Directive 2009/138/EC in accordance with Article 4 of that Directive; (j) institutions for occupational retirement provision within the meaning of point (a) of Article 6 of Directive2003/41/EC or subject to prudential and supervisory requirements comparable to those applied to institutions within the meaning of point (a) of Article 6 of Directive 2003/41/EC in terms of robustness; (k) undertakings for collective investment: (i) within the meaning of Article 1 of Directive 2009/65/EC; (ii) established in third countries where they are authorised under laws which provide that they are subject to supervision considered to be equivalent to that laid down in Directive 2009/65/EC; (iii) within the meaning of Article 4(1)(a) of Directive 2011/61/EU with the exception of: - undertakings employing leverage on a substantial basis according to Article 111(1) of Commission Delegated Regulation (EU) 231/2013 and/or - undertakings which are allowed to originate loans or purchase third party lending exposures onto their balance- sheet pursuant to the relevant fund rules or instruments of incorporation; (iv) which are authorised as ‘European long-term investment funds’ in accordance with Regulation (EU)2015/760; (v) within the meaning of Article3(1)(b) of Regulation (EU) 346/2013 (‘qualifying social entrepreneurship funds’); (vi) within the meaning of Article 3(b) of Regulation (EU) 345/2013 (‘qualifying venture capital funds’). except undertakings that invest in financial assets with a residual maturity not exceeding two years(short-term assets) and have as distinct or cumulative objectives offering returns in line with money market rates or preserving the value of the investment (money market funds); (l) central counterparties (CCPs)as defined in point (1) of Article 2 of Regulation (EU) No 648/2012 established in the EU and third country CCPs recognised by ESMA pursuant to Article 25 of that Regulation; (m) electronic money issuers as defined in point (3) of Article 2 of Directive 2009/110/EC; (n) payment institutions as defined in point (4) of Article 4 of Directive 2007/64/EC; (o) entities the principal activity of which is to carry out credit intermediation activities for their parent undertakings, for their subsidiaries or for other subsidiaries of their parent undertakings; (p) resolution authorities, asset management vehicles and bridge institutions as defined in points (18), (56) and(59) of Article 2(1) of Directive 2014/59/EU and entities wholly or partially owned by one or more public authorities established prior to the 1 January 2016 for the purpose of receiving and holding some or all of the assets, rights and liabilities of one or more institutions in order to preserve or restore the viability, liquidity or solvency of an institution or to stabilise the financial market."
2018/02/05
Committee: ECON