27 Amendments of Sven GIEGOLD related to 2011/0202(COD)
Amendment 222 #
Proposal for a regulation
Recital 91 a (new)
Recital 91 a (new)
(91a) The Commission is invited to assess by June 2013 the impact of a binding leverage ratio of 2% by January 2019 and of 3% by January 2021, specifically on institutions covered by this regulation, with a business model which is based on low risk activities and low profit margins.
Amendment 223 #
Proposal for a regulation
Recital 91 b (new)
Recital 91 b (new)
(91b) In reference to Article 345 TFEU, which states that the Treaties shall in no way prejudice the rules in Member States governing the system of property ownership, the provisions of this Regulation shall neither favour nor discriminate types of ownership, which are in the scope of this Regulation.
Amendment 224 #
Proposal for a regulation
Recital 91 c (new)
Recital 91 c (new)
(91c) Among financial instruments covered bonds have played an increasingly important role since the aftermath of the financial crisis. A financial institution, which issues this bond uses a certain ratio of its assets to cover these instruments. As a consequence, in the case of insolvency, assets linked in the aforementioned way to covered bonds are not available to cover the liabilities of the institution. This point is specifically relevant for a financial institution, which on the one hand issues covered bonds to a large extent and on the other hand takes in deposits. Facing solvency problems, this institutions will use a considerable part of their assets, most likely those of the highest value, to shield its covered bonds. Under such constraints, less assets will be left to cover the remaining liabilities, such as the deposits of these institutions. Usually external deposit guarantee schemes will be drawn in to cover the deposits of the bank in trouble. Likewise, the role of deposit guarantee schemes creates an incentive, especially for financial institutions issuing covered bonds, to use the best assets to cover these financial instruments and to transfer the risk related to liabilities in the form of deposits to the respective schemes. In order to avoid such actions, it is necessary to include a structure in the framework of CRD IV, which creates a disincentive for high issuance of covered bonds, specifically for institutions, which also take deposits. Therefore, financial institutions covered by this regulation and which also issue covered bonds and take in deposits should create an internal deposit reserve. This capital cushion must adequately reflect the ratio of covered bonds issued by a financial institution, which exceeds the threshold established through Article 124(5a) of this Regulation.
Amendment 366 #
Proposal for a regulation
Article 24 – paragraph 4
Article 24 – paragraph 4
4. EBA shall draft regulatory technical standards to establish, maintain and publish a binding list of the forms of capital instrument insuitable for each Member State that qualify as Common Equity Tier 1 instruments. EBA shall establish and publish this list by 1 January 2013submit those draft regulatory technical standards to the Commission by 1 January 2013. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1093/2010. Those technical standards have to be reviewed regularly and adjusted when necessary. Drafting the standards diversity within the banking system shall be taken into account by applying the principal of proportionality .
Amendment 518 #
Proposal for a regulation
Article 78 – paragraph 1 – subparagraph 1 – point d a (new)
Article 78 – paragraph 1 – subparagraph 1 – point d a (new)
(da) the special purpose entity provides publicly accessible information about the jurisdiction in which it is based, its annual accounts and the amount of taxes paid.
Amendment 587 #
Proposal for a regulation
Article 88 – paragraph 2
Article 88 – paragraph 2
2. Institutions that were already in existence on 1 January 1993, the own funds of which do not attain the amount of initial capital required may continue to carry on their activities. In that event, the own funds of those institutions may not fall below the highest level reached with effect from 22 December 1989, except when the cause for falling below this level is, that certain capital instruments, qualifying as own funds under Directive 2006/48/EC, do not qualify as own funds under this Regulation, or that there are new deduction rules.
Amendment 596 #
Proposal for a regulation
Article 95 – paragraph 2 – subparagraph 1
Article 95 – paragraph 2 – subparagraph 1
EBA shall develop draft implementing technical standards to specify the definitions, classification criteria, uniform formats, frequencies and dates of reporting and the IT solutions to be applied in the Union for such reporting. Regarding the financial information, the scope of the implementing technical standard shall be limited to institutions that are subject to article 4 in Regulation (EC) No. 1606/2002. The reporting formats and frequency shall be proportionate to the nature, scale and complexity of the activities of the institutions. EBA shall consult the ESRB on the development of draft implementing technical standards related to the information referred to in paragraph 1a(b).
Amendment 620 #
Proposal for a regulation
Article 111 – paragraph 4
Article 111 – paragraph 4
4. Exposures to public-sector entities may be treated as exposures to the central government, regional government or local authority in whose jurisdiction they are established where there is no difference in risk between such exposures because of the existence of an appropriate guarantee by the central government, regional government or local authority.
Amendment 661 #
Proposal for a regulation
Article 119 – paragraph 1 – subparagraph 1 a (new)
Article 119 – paragraph 1 – subparagraph 1 a (new)
An exposure or any part of an exposure in the form of a foreign currency or variable interest rate loan fully secured by mortgage on residential property shall be assigned a risk weight of 50 %, even if the conditions on default experience of exposures and property market developments referred to in paragraph 2, are fulfilled.
Amendment 668 #
Proposal for a regulation
Article 119 – paragraph 2 – subparagraph 5 a (new)
Article 119 – paragraph 2 – subparagraph 5 a (new)
EBA on its own initiative or on request of the ESRB may, based on sound assessment of the default experiences and private and commercial immovable property market developments in a Member State, issue warnings to the relevant competent authorities and call for the introduction of stricter risk weights or stricter criteria. In case of non action EBA shall publish those warnings. EBA on its own initiative or on request of the ESRB may also call on the Council to take a decision in accordance with Article 18 Paragraph 2 of Regulation No. 1093/2010 of the European Parliament and of the Council. In this case EBA may take a decision in accordance to Art. 18 Paragraph 3 of Regulation No. 1093/2010 of the European Parliament and of the Council to implement stricter risk weights or stricter criteria for the affected markets
Amendment 676 #
Proposal for a regulation
Article 120 – paragraph 2 – point d
Article 120 – paragraph 2 – point d
(d) the part of the loan to which the 35% risk weight unless otherwise determined under Article 119(2) is assigned does not exceed 80% unless otherwise determined under Article 119(2) of the market value of the property in question or 80% of the mortgage lending value unlesa Loan to Value ratio of 100%, or a Loan to Value ratio of 90% in the case of a foreign currency or variable interest rate loan, and fulfils otherwise determin criteria provided under Article 119(2) of the property in question in those Member States that have laid down rigorous criteria for the assessment of the mortgage lending value in statutory or regulatory provisions.
Amendment 684 #
Proposal for a regulation
Article 121 – paragraph 2 – point d
Article 121 – paragraph 2 – point d
(d) The 50 % risk weight unless otherwise provided under Article 119(2) shall be assigned to the part of thea loan that does not exceed 50 % of the market value of the property or 60 % of the mortgage lending value unlesa Loan to Value ratio of 80%, or a Loan to Value ratio of 70% in the case of a foreign currency or variable interest rate loan, and fulfils otherwise criteria provided under Article 119(2) of the property in question in those Member States that have laid down rigorous criteria for the assessment of the mortgage lending value in statutory or regulatory provisions.
Amendment 714 #
Proposal for a regulation
Article 124 – paragraph 5 a (new)
Article 124 – paragraph 5 a (new)
5a. Issuances of covered bonds, which exceed 4% of total assets of a credit institution, also taking deposits, are subject to a financial transfer to an internal deposit reserve.
Amendment 765 #
Proposal for a regulation
Article 175 – paragraph 1 – subparagraph 1 – point a
Article 175 – paragraph 1 – subparagraph 1 – point a
(a) an institution's own estimates of the risk parameters PD, LGD, conversion factor and EL shall incorporate all relevant data, information and methods. The estimates shall be derived using both historical experience and empirical evidence, as well as dealing with perceived and identified deficiencies and areas needing improvement, amongst others material impacts of social and environmental risks, and not based purely on judgemental considerations. The estimates shall be plausible and intuitive and shall be based on the material drivers of the respective risk parameters. The less data an institution has, the more conservative it shall be in its estimation;
Amendment 800 #
Proposal for a regulation
Article 264 – paragraph 3 a (new)
Article 264 – paragraph 3 a (new)
3a. Institutions covered by this regulation shall not apply Geoscoring to determine the creditworthiness of clients.
Amendment 818 #
Proposal for a regulation
Article 345 – paragraph 1 – point a
Article 345 – paragraph 1 – point a
(a) at any time of the year it holds own funds for this risk which are not lower than50% above the average of own funds requirement for that risk estimated on a conservative basis for the coming year;
Amendment 819 #
Proposal for a regulation
Article 345 – paragraph 1 – point b
Article 345 – paragraph 1 – point b
(b) it estimates on a very conservative basis the expected volatility for the figure calculated under point (a), taking into account the higher volatility in years of crisis or unforeseen critical situations, using the precautionary principle regarding possible long-term exaggerative swings in world market prices of commodities;
Amendment 820 #
Proposal for a regulation
Article 345 – paragraph 1 – point c
Article 345 – paragraph 1 – point c
(c) its average own funds requirement for this risk does not exceed 2,5% of its own funds or 1 million500 000 EUR and, taking into account the volatility estimated in accordance with (b), the expected peak own funds requirements do not exceed 6.3,5% of its own funds;
Amendment 821 #
Proposal for a regulation
Article 345 – paragraph 1 – point d
Article 345 – paragraph 1 – point d
(d) The institution monitors on an ongoing basis whether the estimates carried out under points (a) and (b) still reflect the reality and whether its activities have an influence on world market prices and price volatility of commodities, especially on food agricultural commodities.
Amendment 828 #
Proposal for a regulation
Article 350 – paragraph 1 – introductory part
Article 350 – paragraph 1 – introductory part
Institutions mayshall use the minimum spread, carry and outright rates set out in the following table 2 instead of those indicated in Article 348 provided that the institutions:
Amendment 829 #
Proposal for a regulation
Article 350 – paragraph 1 – point b
Article 350 – paragraph 1 – point b
Amendment 830 #
Proposal for a regulation
Article 350 – paragraph 1 – point c
Article 350 – paragraph 1 – point c
Amendment 831 #
Proposal for a regulation
Article 350 – Table 2
Article 350 – Table 2
Amendment 872 #
Proposal for a regulation
Article 389 – paragraph 1 – subparagraph 1 – point c
Article 389 – paragraph 1 – subparagraph 1 – point c
(c) asset items constituting claims carrying the explicit guarantees of central governments, central banks, international organisations, multilateral development banks or public sector entities, where unsecured claims on the entity providing the guarantee would be assigned a 0 % risk weight under Part Three, Title II, Chapter 2; . The explicit guarantees of the aforementioned institutions shall be statistically measured and categorised as contingent liabilities as defined in article 14(3) of the Council Directive 2011/85/EU. Furthermore, the financial value in relation to the specific guarantee holders shall be statistically measured. The respective banks shall disclose in their business report the received guarantees of the aforementioned categories.
Amendment 875 #
Proposal for a regulation
Article 389 – paragraph 1 – subparagraph 1 – point d
Article 389 – paragraph 1 – subparagraph 1 – point d
(d) other exposures attributable to, or guaranteed by, central governments, central banks, international organisations, multilateral development banks or public sector entities, where unsecured claims on the entity to which the exposure is attributable or by which it is guaranteed would be assigned a 0 % risk weight under Part Three, Title II, Chapter 2;. The respective explicit guarantees of central governments or public sector entities shall be statistically measured and categorised as contingent liabilities as defined in article 14(3) of the Council Directive 2011/85/EU. Furthermore the total financial value in relation to the specific guarantee holders shall be statistically measured. The respective banks shall disclose in their business report the received guarantees of the aforementioned categories.
Amendment 877 #
Proposal for a regulation
Article 389 – paragraph 1 – subparagraph 1 – point e
Article 389 – paragraph 1 – subparagraph 1 – point e
(e) asset items constituting claims on regional governments or local authorities of Member States where those claims would be assigned a 0 % risk weight under Part Three, Title II, Chapter 2 and other exposures to or guaranteed by those regional governments or local authorities, claims on which would be assigned a 0 % risk weight under Part Three, Title II, Chapter 2;. The respective guarantees of regional governments or local authorities shall be statistically measured and categorised as contingent liabilities as defined in article 14(3) of the Council Directive 2011/85/EU. Furthermore, the financial value in relation to the specific guarantee holders shall be statistically measured. The respective banks shall disclose in their business report the received guarantees of the aforementioned categories.
Amendment 1004 #
Proposal for a regulation
Article 404 – paragraph 2 – point a – point iii
Article 404 – paragraph 2 – point a – point iii
(iii) the credit institution has been set up and is sponsored by a Member State central or regional government and the asset isat government has an obligation to protect the economic basis of the institution and maintain its viability throughout its lifetime; or the asset is explicitly guaranteed by that government; and the asset is exclusively used to fund promotional loans grantede that government’s public policy objectives on a non- competitive, not for profit basis in order to promote its public policy objectives;