26 Amendments of Olle LUDVIGSSON related to 2015/0270(COD)
Amendment 113 #
Proposal for a regulation
Recital 5
Recital 5
(5) In June 2015, the Five Presidents Report on Completing Europe’s Economic and Monetary Union pointed out that a single banking system can only be truly single if confidence in the safety of bank deposits is the same irrespective of the Member State in which a bank operates. This requires single bank supervision, single bank resolution and single deposit insurance. The Five Presidents report therefore proposed tocalled for completeion of the Banking Union by establishing a European Deposit Insurance Scheme (EDIS), the third pillar of a fully-fledged Banking Union alongside bank supervision and resolution, that should be completed by a common fiscal backstop based in the European Stability Mechanism. Concrete steps in that direction should already be taken as a priority, with a re-insurance system at the European level for the national deposit guarantee schemes as a first step towards a fully mutualised approach. The scope of this reinsurance system should coincide with that of the SSM.
Amendment 127 #
Proposal for a regulation
Recital 7
Recital 7
(7) The absence of a homogenous level of depositor protection can distort competition and create an effective barrier for the freedoms of establishment and free provision of services by credit institutions within the internal market. A common deposit insurance scheme is therefore essential for the completion of the internal market in financial services, while improving the competitive position of the Union as the safest financial area in the world.
Amendment 141 #
Proposal for a regulation
Recital 9
Recital 9
(9) Funds used by deposit guarantee schemes to repay depositors for unavailable covered deposits in accordance with Article 8 of Directive 2014/49/EU on deposit guarantee schemes do not constitute State aid or Fund aid. However, where those funds are used in the restructuring of credit institutions and constitute State aid or Fund aid, they must comply with Article 108 of the Treaty on the Functioning of the European Union and, respectively, with Article 19 of Regulation (EU) No 806/2014 of the European Parliament and of the Council13, which should be amended for that purpose. __________________ 13 Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund and amending Regulation (EU) No 1093/2010 (OJ L 225, 30.7.2014, p. 1).
Amendment 152 #
Proposal for a regulation
Recital 14
Recital 14
(14) In order to ensure parallelism with the SSM and the SRM, EDIS should apply to participating Member States. Banks established in the Member States not participating in the SSM should not be subject to EDIS. As long as supervision in a Member State remains outside the SSM, that Member State should remain responsible for ensuring the protection of depositors against the consequences of the insolvency of a credit institutiondeposits becoming unavailable. As Member States join the SSM, they should also automatically become subject to the EDIS. Ultimately, the EDIS could potentially extend to the entire internal market.'
Amendment 155 #
Proposal for a regulation
Recital 15
Recital 15
(15) In order to ensure a level playing field within the internal market as a whole, this Regulation is consistent with Directive 2014/49/EU. It complements the rules and principles of that Directive to ensure the proper functioning of EDIS and that appropriate funding is available to the latter. The key objective of the EDIS is to enhance the effective deposit guarantee framework with a view to protecting depositors against the consequences of deposits becoming unavailable. At the full insurance stage, the objective is to provide an equal level of protection to all depositors of credit institutions affiliated to the participating DGSs. The material law on deposit guarantee to be applied within the EDIS framework will therefore be consistent with the one applicable by the national DGSs or designated authorities of the non- participating Member States, harmonised through the Directive 2014/49/EU.
Amendment 160 #
Proposal for a regulation
Recital 15 b (new)
Recital 15 b (new)
(15b) It should also be possible for the DIF to go beyond a pure reimbursement function and to use the available financial means in order to prevent the failure of a credit institution with a view to avoiding the costs of reimbursing depositors and other adverse impacts. Those measures should, however, be carried out within a clearly defined framework including appropriate systems and procedures in place for selecting and implementing such measures and monitoring affiliated risks. Implementing such measures should be subject to the imposition of conditions as defined in Directive 2014/49/EU. The costs of the measures taken to prevent the failure of a credit institution should not exceed the costs of fulfilling the statutory or contractual mandates of the respective DIF with regard to protecting covered deposits at the credit institution or the institution itself.
Amendment 166 #
Proposal for a regulation
Recital 17
Recital 17
(17) EDIS should progressively evolve from a reinsurance scheme into a fully mutualised co-insurance scheme over a number of years. In the context of efforts to deepen the EMU, together with the work on the establishment of bridge-financing arrangements for the Single Resolution Fund (SRF) and on developing a common fiscal backstop, this step is necessary to reduce the bank/sovereign links in individual Member States by means of steps towards risk sharing among all the Member States in the Banking Union, and thereby to reinforce the Banking Union in achieving its key objective. HoweverIn parallel, such risk sharing implied by steps to reinforce Banking Union must proceed in parallel with risk reducing measures designed to break the bank-sovereign link more directly.s already supported by the SSM and SRM, which significantly reduce the likelihood of bank failures, and by a wide range of prudential measures which have been taken in respect of banks, with the objective of strengthening supervision and crisis management, improving the amount and quality of capital, reducing concentration of exposures, fostering deleveraging, limiting pro-cyclical lending behaviour, reinforcing access to liquidity, addressing systemic risk due to size, complexity and interconnectedness, reinforcing depositor confidence, and incentivising proper risk management via rules on governance
Amendment 198 #
Proposal for a regulation
Recital 20
Recital 20
(20) As the Deposit Insurance Fund, in the re-insurance stage, would only provide an additional source of funding and would only weaken the link between banks and their national sovereign, without however ensuring that all depositors in the Banking Union enjoy an equal level of protection, the reinsurance stage should, after threewithin two years, gradually progress into a co- insurance scheme and ultimately into a fully mutualised deposit insurance scheme. Only a fully mutualized EDIS would ensure that all depositors enjoy an equal level of protection.
Amendment 206 #
Proposal for a regulation
Recital 21
Recital 21
(21) While the reinsurance and coinsurance stages would share many common features, ensuring a smooth gradual evolution, pay-outs under the co- insurance stage would be shared between national DGS and the Deposit Insurance Fund as of the first euro of loss. The relative contribution from the Deposit Insurance Fund would gradually increase to 100 percent, resulting in the full mutualisation of depositor risk across the Banking Union after fourwithin three years.
Amendment 220 #
Proposal for a regulation
Recital 23
Recital 23
(23) The Deposit Insurance Fund is an essential element without which the progressive establishment of EDIS could not be achieved. Different national systems of funding would not provide for homogenous deposit insurance across the Banking Union. Throughout the three stages, the Deposit Insurance Fund should help ensuring the stabilising role of DGSs, a uniform high level of protection to all depositors in a harmonised framework throughout the Union and avoiding the creation of obstacles for the exercise of fundamental freedoms or the distortion of competition in the internal market due to different levels of protection at national level, since savers have the right to open a bank account in any Member State irrespective of their legal domicile.
Amendment 246 #
Proposal for a regulation
Recital 27
Recital 27
(27) In principle, contributions should be collected from the industrybanks prior to, and independently of, any deposit insurance action. When prior funding is insufficient to cover the losses or costs incurred by the use of the Deposit Insurance Fund, additional contributions should be collected to bear the additional cost or loss. Moreover, the Deposit Insurance Fund should be able to contract borrowings or other forms of support from credit institutions, financial institutions or other third parties in the event that the ex-ante and ex post contributions are not immediately accessible or do not cover the expenses incurred by the use of the Deposit Insurance Fund in relation to deposit insurance actions.
Amendment 263 #
Proposal for a regulation
Recital 30
Recital 30
(30) Ensuring effective and sufficient financing of the Deposit Insurance Fund is of paramount importance to the credibility and efficiency of EDIS. The capacity of the Board to contract alternative funding means for the Deposit Insurance Fund should be enhanced in a manner that optimises the cost of funding and preserves the creditworthiness of the Deposit Insurance Fund. Immediately after the entry into force of this Regulation, the necessary steps should be taken by the Board in cooperation with the participating Member States to develop the appropriate methods and modalities permitting the enhancement of the borrowing capacity of the Deposit Insurance Fund that should be in place by the date of application of this Regulation. It is essential also to create a mutualised credit line via the European Stability Mechanism (ESM) as an effective common fiscal backstop for the Banking Union to be used as a last resort.
Amendment 268 #
Proposal for a regulation
Recital 31
Recital 31
(31) It is necessary to ensure that the Deposit Insurance Fund is fully available for the purpose of ensuring the guarantee of deposits. Therefore, the Deposit Insurance Fund should primarily be used for the efficient implementation of deposit guarantee requirements and actions. Furthermore, it should be used only in accordance with the applicable deposit guarantee objectives and principles. Under certain conditions, the Deposit Insurance Fund could also provide funding where the available financial means of a DGS are used in resolution in accordance with Article 79 of this Regulation. Furthermore, the Deposit Insurance Fund could be used for the implementation of alternative measures, as established in Article 77a of this Regulation, under a strict supervision framework.
Amendment 288 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Regulation (EU) No 806/2014
Article 1 – paragraph 2 – subparagraph 1 – introductory part
Article 1 – paragraph 2 – subparagraph 1 – introductory part
2. In addition, in order to ensure that all depositors in the Banking Union enjoy an equal level of protection, this Regulation establishes a fully mutualised European Deposit Insurance Scheme ('EDIS') by 2022 in three successive stages:
Amendment 331 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5 a (new)Regulation (EU) No 806/2014
Article 1 – paragraph 1 – point 5 a (new)Regulation (EU) No 806/2014
Article 5 – title
Amendment 333 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5 b (new)Regulation (EU) No 806/2014
Article 1 – paragraph 1 – point 5 b (new)Regulation (EU) No 806/2014
Article 5 – paragraph 1 – subparagraph -1 (new)
5b. In Article 5(1), the following new subparagraph -1 is added: ‘-1. Where, pursuant to this Regulation, the Board decides to exercise the recovery rights, which, pursuant to Directive 2014/49/EU are exercised by the DGS, the Board shall, for the application of this Regulation and of Directive 2014/49/EU, be considered to be the relevant DGS in national insolvency proceedings.’
Amendment 337 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9 a (new)
Article 1 – paragraph 1 – point 9 a (new)
9a. in Article 34, paragraph 5 is replaced by the following: ‘5. The Board, the ECB, the national competent authorities and, the national resolution authorities and the national designated authorities may draw up memoranda of understanding with a procedure concerning the exchange of information. The exchange of information between the Board, the ECB, the national competent authorities, and the national resolution authorities and the national designated authorities shall not be deemed to infringe the requirements of professional secrecy.’
Amendment 340 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9 b (new)Regulation (EU) No 806/2014
Article 1 – paragraph 1 – point 9 b (new)Regulation (EU) No 806/2014
Article 38 – paragraph 2 – point c a (new)
9b. In Article 38(2), the following point (ca) is added: ‘(ca) where they intentionally or negligently fail to comply with decisions of the DGS to which they are affiliated, including a failure associated with the invoices on contributions, in accordance with Article 74e.’;'
Amendment 363 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) No 806/2014
Article 41a – paragraph 1
Article 41a – paragraph 1
1. As from the date of application set out in Article 99(5a), participating DGSs are reinsured by EDIS in accordance with this Chapter for a period of threewo years (‘reinsurance period’).
Amendment 415 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) No 806/2014
Article 41d – paragraph 1
Article 41d – paragraph 1
1. As from the end of the re-insurance period, the participating DGS shall be co- insured by EDIS in accordance with this Chapter for a period of fourthree years (‘co- insurance period’).
Amendment 450 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) No 806/2014
Article 41h a (new)
Article 41h a (new)
Article 41ha By way of derogation to Article 1(2) and Article 74c(4) the Commission may adopt a delegated act in accordance with Article 93 in order to supplement this Regulation by anticipating the date of application of this Chapter and its related pre-conditions as defined in Articles 41e and 41j in case the legislative proposals presented by the Commission on 23rd November 2016 (e.g. the "EU banking reform" package) have been officially adopted.
Amendment 456 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) No 806/2014
Article 41i – paragraph 1
Article 41i – paragraph 1
1. A participating DGS shall not be covered by EDIS in the reinsurance, co- insurance or full insurance phase, if the Commission, acting on its own initiative or upon a request of the Board or a participating Member State, decides and informs the Board accordingly that at least one of the following disqualifying conditions is met: The Commission and the Board shall monitor the ability of DGSs to meet their obligations under the relevant legislation on a continuous basis. The Commission and the Board shall monitor in particular compliance with Articles 4(8), 4(9), 4(10), 4(11), 5, 6 8(1), 8(2), 8(6) and 10 of Directive 2014/49/EU and with Articles 41j and 41p of this Regulation. 1a. If the Commission or Board identifies instances of non-compliance with any or all of its obligations under paragraph 1, it shall inform the other and the DGS concerned. 1b. The Board, based on the information of the Commission or acting on its own initiative, may issue a recommendation to the DGS to comply with those obligations within a maximum period of 3 months. That recommendation shall include remedial actions and may also include technical assistance from the SRB. 1c. If a DGS fails to comply with a recommendation of the Commission within the specified time frame, the Commission may decide that the funding from EDIS in the case of a payout event or a resolution action shall be provided as a loan subject to the conditions in paragraph 1d. If EDIS has already provided funds and the DGS arrangements are inadequate for a payout event or a resolution action and do not comply with the obligations under paragraph 1, the Commission may decide to convert the funding provided by EDIS into a loan up to a period of [3 year] following the payout event or the resolution action and subject to the conditions in paragraph 1d. Any future payout event or resolution action shall also be provided as a loan as long as the DGS continues to fail to comply with the instructions. 1d. EDIS shall grant a loan under the following conditions: (a) the DGS must fully deplete its available financial means; (b) the DGS has committed to comply with the instruction of the Commission; (c) the rate of interest of the loan shall not be less than 1% above the 12 month EURIBOR rate; unless the Commission, after consulting the Board, decides otherwise in its instruction on the grounds of proportionality, including the non- punitive nature of the loan. The DGS shall calculate the ex-post contributions for the national banking system to pay the interest; (d) the maturity of the loan shall not exceed [3] years; (e) the loan shall not exceed the amount of liquidity support that the DGS would have received. 1e. The Commission shall decide that a participating DGS shall not be covered by EDIS if it continues to fail to comply with its obligations under paragraph 1 and following the steps set out in this article. If a participating DGS is not covered by EDIS it shall repay the loan within [1 year]. The participating DGS concerned shall notify the Commission on the fulfilment of its obligations. The Commission should upon the notification re-evaluate the decision on the loss of cover of the participating DGS and, if appropriate, issue a recommendation that the DGS re- qualifies for EDIS coverage. (a) the participating DGS has failed to comply with the obligations under this Regulation or Articles 4, 6, 7 or 10 of Directive 2014/49/EU; (b) the participating DGS, the relevant administrative authority within the meaning of Article 3 of Directive 2014/49/EU, or any other relevant authority of the respective Member State have, in relation to a particular request for coverage by EDIS, acted in a way that runs counter to the principle of sincere cooperation as laid down in Article 4(3) of the Treaty on European Union.
Amendment 636 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34
Article 1 – paragraph 1 – point 34
Regulation (EU) No 806/2014
Article 74 b – paragraph 5 a (new), 5 b (new), 5 c (new), 5 d (new)
Article 74 b – paragraph 5 a (new), 5 b (new), 5 c (new), 5 d (new)
5a. In all phases, the coverage level for the aggregate deposits of each depositor is EUR 100 000 in the event of deposits being unavailable. 5b. In addition to paragraph 5a, EDIS shall ensure that the following deposits are protected up to EUR 400 000 for at least six months once the amount has been credited or from the moment when such deposits become legally transferable: (a) deposits resulting from real estate transactions relating to private residential properties; (b) deposits that serve social purposes laid down in this Regulation and are linked to particular life events of a depositor such as marriage, divorce, retirement, dismissal, redundancy, invalidity or death; (c) deposits that serve purposes laid down in this Regulation and are based on the payment of insurance benefits or compensation for criminal injuries or wrongful conviction. The Commission shall be empowered to adopt a delegated act in accordance with Article 93 in order to establish conditions for enlarging the coverage included in points (a), (b) and (c) of this paragraph. 5c. The amount referred to in paragraph 5a shall be reviewed periodically by the Commission and at least once every five years. If appropriate, the Commission shall submit to the European Parliament and to the Council a proposal for a Directive to adjust the amount referred to in paragraph 5a, taking account in particular of developments in the banking sector and the economic and monetary situation in the Union. The first review shall not take place before 3 July 2020 unless unforeseen events necessitate an earlier review. 5d. The Commission shall be empowered to adopt delegated acts in accordance with Article 93 in order to adjust the amounts referred to in paragraphs 5a and 5b at least every five years, in accordance with inflation in the Union on the basis of changes in the harmonised index of consumer prices published by the Commission since the previous adjustment.
Amendment 744 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34
Article 1 – paragraph 1 – point 34
Regulation (EU) No 806/2014
Article 74 g – paragraph 1 a (new)
Article 74 g – paragraph 1 a (new)
1a. The board may raise loans as a mutualised credit line via the European Stability Mechanism regarding the immediate availability of additional financial means to be used where the amounts raised or available are not sufficient to meet the Funds' obligations. A common backstop shall be developed during the re-insurance period to facilitate borrowing by the DIF. The use of the common backstop shall be fiscally neutral in the long term.
Amendment 763 #
Proposal for a regulation
Article 1 – paragraph 1 – point 36
Article 1 – paragraph 1 – point 36
Regulation (EU) No 806/2014
Article 75 – paragraph 3
Article 75 – paragraph 3
3. The Board shall have a prudent and safe investment strategy that is provided for in the delegated acts adopted pursuant to paragraph 4 of this Article, and shall invest the amounts held in the SRF and the DIF in obligations of the Member States or intergovernmental organisations, or in highly liquid assets of high creditworthiness, taking into account the delegated act referred to in Article 460 of Regulation (EU) No 575/2013 as well as other relevant provisions of that Regulation. Investments shall be sufficiently sectorally, geographically and proportionally diversified. The return on those investments shall benefit the SRF and the DIF respectively, in strict proportion to the monies invested on behalf of each of those funds.
Amendment 774 #
Proposal for a regulation
Article 1 – paragraph 1 – point 37
Article 1 – paragraph 1 – point 37
Regulation (EU) No 806/2014
Article 77 a – paragraph 3 a (new)
Article 77 a – paragraph 3 a (new)
3a. The Board may allow the use of the DIF for alternative measures in order to prevent the failure of a credit institution provided that the conditions defined in the Article 11(3) of the Directive 2014/49/EU are met. The Board may decide that the available financial means may also be used to finance measures to preserve the access of depositors to covered deposits, including transfer of assets and liabilities and deposit book transfer, in the context of national insolvency proceedings, provided that the costs borne by the DIF do not exceed the net amount of compensating covered depositors at the credit institution concerned.