42 Amendments of Sven GIEGOLD related to 2018/0060(COD)
Amendment 61 #
Proposal for a regulation
Recital 1
Recital 1
(1) The establishment of a comprehensive strategy to address the issue of non-performing exposures (NPEs) is a priority for the Unionn important goal for the Union in its attempt to make the financial system more resilient. While addressing NPEs is primarily the responsibility of banks and Member States, there is also a clear Union dimension to reduce current stocks of NPEs, as well as to prevent any excessive build-up of NPEs in the future. Given the interconnectedness of the banking and financial systems across the Union where banks operate in multiple jurisdictions and Member States, there is significant potential for spill-over effects for Member States and the Union at large, both in terms of economic growth and financial stability.
Amendment 64 #
Proposal for a regulation
Recital 2
Recital 2
(2) An integrated financial system will enhance the resilience of the European Monetary Union to adverse shocks by facilitating private cross-border risk- sharing, while at the same time reducing the need for public risk-sharing. In order to achieve these objectives, the Union should complete the Banking Union and further develop a Capital Markets Union. Addressing high stocks of NPEs and their possible future accumulation is essential to completing the Banking Union as it is essential for ensuring competition in the banking sector, preserving financial stability and encouraging lending so as to create jobs and growth within the Union.
Amendment 68 #
Proposal for a regulation
Recital 3 a (new)
Recital 3 a (new)
(3 a) To a large extent, the existing stock of NPEs is a legacy of the big financial crisis that began in 2007 and the emergence of housing bubbles in various Member States. The banking sector contributed to this through imprudent lending practices. Another contributing factor was the way in which the Late Payments Directive (Directive 2011/7/EU) was transposed and implemented at national level. It had the unfortunate side effect of preventing some small and medium-sized enterprises from collecting trade receivables effectively when payment of those was delayed, so that, in turn, they could not pay their bank loans on time. Therefore, the Union's comprehensive strategy for addressing the NPE issue ensures that mortgage borrowers and SME debtors do not bear the brunt of the necessary adjustment.
Amendment 88 #
Proposal for a regulation
Recital 7 a (new)
Recital 7 a (new)
(7 a) Partial write-offs should be taken into account when calculating the specific credit risk adjustments. The original exposure value prior to the partial write- off has to be used, in order to avoid any double counting of the write-off. The inclusion of partial write-offs in the list of items that can be used to meet the requirements of the backstop should encourage institutions to timely recognise write-offs.
Amendment 94 #
Proposal for a regulation
Recital 9
Recital 9
(9) AFor the secured parts of non- performing exposures, different calendars should be appliedy depending on whether the exposure is non-performing because the obligor is past due more than 90 days or if it is non- performing for other reasons. In the first case, the minimum coverage requirement should be higher as the institution has not received any payment from the obligor over a long period. In the second case, there should be no full coverage requirement as there is still some repayment or a higher probability of repaymentsecured by immovable property or other types of movable collateral. This reflects the fact that NPE sthat are secured by immovable collateral and residential loans guaranteed by an eligible protection provider as defined in Regulation (EU) No. 575/2013 remain valuable after having been classified as non-performing longer than NPEs that are secured by other types of collateral. For the former, a schedule is introduced that requires 100% coverage after seven years of having been non-performing. NPEs secured by movable and other types of collateral, on the other hand, will have to be fully provisioned for after six years.
Amendment 100 #
Proposal for a regulation
Recital 10 a (new)
Recital 10 a (new)
(10 a) This Regulation creates an incentive for banks to grant forbearance measures to debtors in arrears because it rewards such measures by delaying the annual increase of the provisioning factor. An NPE that is subject to forbearance measures continues to be classified as non-performing, but the applicable provisioning factor remains stable for one additional year. Thus, the factor that applies during the year in which the forbearance measure is granted becomes applicable for two years, instead of one. If the NPE is still non-performing after the additional year, the applicable factor should be determined as if no forbearance measure had been granted, taking into account the date when the exposure was originally classified as non- performing. To prevent banks from taking advantage of this possibility, it should only be permitted in respect of the first forbearance measure that was granted since the classification of the exposure as non-performing. Furthermore, the one- year period during which the coverage factor remains unchanged should not lead to the extension of the provisioning calendar. Consequently, any forbearance measure granted in the second year after the classification as NPE for unsecured exposures, or, in the sixth or seventh year after the classification as NPE for exposures secured respectively by movable or immovable collateral, should not delay the full coverage of the NPE.
Amendment 108 #
Proposal for a regulation
Recital 12
Recital 12
(12) In order to facilitate a smooth transition towards this new prudential backstop, the new rules should not be applied in relation to exposures originated prior to 14 Marchthat were classified as non-performing before 1st of April 2018 . The Commission has repeatedly made public its intention to introduce a prudential backstop for NPEs. As of the date of the legislative proposal there should be sufficient clarity for institutions and other stakeholders on how the prudential backstop envisaged by the Commission would apply.
Amendment 125 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 2 – subparagraph 1
Article 47a – paragraph 2 – subparagraph 1
For the purposes of Article 36(1)(m), the exposure value of a debt instrument shall be its accounting value measured without taking into account any specific credit risk adjustments, additional value adjustments in accordance with Articles 34 and 105, amounts deducted in accordance with Article 36(1)(m) or other own funds reductions related to the exposure or partial write-offs made by the institution since the last time the exposure was classified as non-performing.
Amendment 142 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 3 – subparagraph 2
Article 47a – paragraph 3 – subparagraph 2
For the purpose of point (a), where an institution has on-balance sheet exposures to an obligor that are past due by more than 90 days and that represent more than 20% of all on-balance sheet exposures to that obligor, all on- and off-balance sheet exposures to that obligor shall be considered as past due by more than 90 daysnon-performing.
Amendment 189 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 1 – subparagraph 1 – point b – point iv a (new)
Article 47c – paragraph 1 – subparagraph 1 – point b – point iv a (new)
(iv a) amounts written-off by the institution since the exposure was classified as non-performing.
Amendment 207 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 2 – point a
Article 47c – paragraph 2 – point a
(a) 0.35 for the unsecured part of a non-performing exposure to be applied during the period between one year and two years following its classification as non-performing, where the obligor is past due more than 90 days;
Amendment 209 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 2 – point b
Article 47c – paragraph 2 – point b
Amendment 223 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 2 – point c
Article 47c – paragraph 2 – point c
(c) 1 for the unsecured part of a non- performing exposure to be applied as of the first day of the second year following its classification as non-performing, where the obligor is past due more than 90 days;
Amendment 226 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 2 – point d
Article 47c – paragraph 2 – point d
Amendment 236 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point a
Article 47c – paragraph 3 – point a
(a) 0.05 for the secured part of a non- performing exposure that is secured by movable property or other eligible collateral within the meaning of this Regulation to be applied during the period between one year and twohree years following its classification as non- performing, where the obligor is past due more than 90 days;
Amendment 238 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point a a (new)
Article 47c – paragraph 3 – point a a (new)
(a a) 0 for the part of a non-performing exposure secured by immovable property pursuant to Title II of Part Three or that is a residential loan guaranteed by an eligible protection provider referred to in Article 201, to be applied during the period between one year and three years following its classification as non- performing;
Amendment 239 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point b
Article 47c – paragraph 3 – point b
Amendment 250 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point c
Article 47c – paragraph 3 – point c
(c) 0.125 for the secured part of a non- performing exposure that is secured by movable property or other eligible collateral within the meaning of this Regulation to be applied during the period between twohree and threefour years following its classification as non- performing, where the obligor is past due more than 90 days;
Amendment 252 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point c a (new)
Article 47c – paragraph 3 – point c a (new)
(c a) 0.15 for the part of a non- performing exposure secured by immovable property pursuant to Title II of Part Three or that is a residential loan guaranteed by an eligible protection provider referred to in Article 201, to be applied during the period between three and four years following its classification as non-performing;
Amendment 256 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point d
Article 47c – paragraph 3 – point d
Amendment 262 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point e
Article 47c – paragraph 3 – point e
(e) 0.175 for the secured part of a non- performing exposure that is secured by movable property or other eligible collateral within the meaning of this Regulation to be applied during the period between threefour and fourive years following its classification as non- performing, where the obligor is past due more than 90 days;
Amendment 266 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point e a (new)
Article 47c – paragraph 3 – point e a (new)
(e a) 0.3 for the part of a non- performing exposure secured by immovable property pursuant to Title II of Part Three or that is a residential loan guaranteed by an eligible protection provider referred to in Article 201, to be applied during the period between four and five years following its classification as non-performing;
Amendment 268 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point f
Article 47c – paragraph 3 – point f
Amendment 275 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point g
Article 47c – paragraph 3 – point g
(g) 0.275 for the secured part of a non- performing exposure that is secured by movable property or other eligible collateral within the meaning of this Regulation to be applied during the period between fourive and fivesix years following its classification as non- performing, where the obligor is past due more than 90 days;
Amendment 280 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point g a (new)
Article 47c – paragraph 3 – point g a (new)
(g a) 0.50 for the part of a non- performing exposure secured by immovable property pursuant to Title II of Part Three or that is a residential loan guaranteed by an eligible protection provider referred to in Article 201, to be applied during the period between five and six years following its classification as non-performing;
Amendment 282 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point h
Article 47c – paragraph 3 – point h
Amendment 289 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point i
Article 47c – paragraph 3 – point i
(i) 0.41 for the secured part of a non- performing exposure that is secured by movable property or other eligible collateral within the meaning of this Regulation to be applied during the period between fivesix and sixeven years following its classification as non- performing, where the obligor is past due more than 90 days;
Amendment 294 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point i a (new)
Article 47c – paragraph 3 – point i a (new)
(i a) 0.75 for the part of a non- performing exposure secured by immovable property pursuant to Title II of Part Three or that is a residential loan guaranteed by an eligible protection provider referred to in Article 201, to be applied during the period between six and seven years following its classification as non-performing;
Amendment 297 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point j
Article 47c – paragraph 3 – point j
Amendment 302 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point k
Article 47c – paragraph 3 – point k
Amendment 308 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point k a (new)
Article 47c – paragraph 3 – point k a (new)
(k a) 1 for the part of a non-performing exposure secured by immovable property pursuant to Title II of Part Three or that is a residential loan guaranteed by an eligible protection provider referred to in Article 201, to be applied during the period between seven and eight years following its classification as non- performing;
Amendment 309 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point l
Article 47c – paragraph 3 – point l
Amendment 317 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point m
Article 47c – paragraph 3 – point m
Amendment 325 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point n
Article 47c – paragraph 3 – point n
Amendment 331 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph – point o
Article 47c – paragraph – point o
Amendment 339 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point p
Article 47c – paragraph 3 – point p
Amendment 364 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 5 – subparagraph 1
Article 47c – paragraph 5 – subparagraph 1
EBA shall assess the range of practices applied for the valuation of secured non- performing exposures and mayshall develop guidelinedraft regulatory standards to specify a common methodology, including possible minimum requirements for re-valuation in terms of timing and ad hoc methods, for the prudential valuation of eligible forms of funded and unfunded credit protection, in particular regarding assumptions pertaining to their recoverability and enforceability.
Amendment 365 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 5 – subparagraph 2
Article 47c – paragraph 5 – subparagraph 2
Amendment 366 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 5 a (new)
Article 47c – paragraph 5 a (new)
5 a. By way of derogation from paragraphs 2 and 3, where an exposure has been granted a forbearance measure within the meaning of Article47b(a)between one year and two years following its classification as non- performing, the factor applicable in accordance with paragraph 2 at the moment the forbearance measure is granted shall be applicable for an additional period of one year;(b)between two and six years following its classification as non-performing, the factor applicable in accordance with paragraph 3 at the moment the forbearance measure is granted shall be applicable for an additional period of one year. This provision may only apply in relation to the first forbearance measure granted in respect to a non-performing exposure.
Amendment 371 #
Proposal for a regulation
Article 1 – paragraph 7
Article 1 – paragraph 7
Regulation (EU) No 575/2013
Article 469a – subparagraph 1
Article 469a – subparagraph 1
By way of derogation from Article 36(1)(m), institutions shall not deduct from Common Equity Tier 1 items the applicable amount of insufficient coverage for non performing exposures where the exposure was incurredclassified as non- performing prior to 14 March April 2018.
Amendment 377 #
Proposal for a regulation
Article 1 – paragraph 7
Article 1 – paragraph 7
Regulation (EU) No 575/2013
Article 469a – subparagraph 2
Article 469a – subparagraph 2
Where the terms and conditions of an exposure which was incurredclassified as non- performing prior to 14 March April 2018 are modified by the institution in a way that increases the institution's exposure to the obligor, the exposure shall be considered as having been incurred on the date when the modification applies and shall cease to be subject to the derogation provided in the first subparagraph..
Amendment 379 #
Proposal for a regulation
Article 1 – paragraph 7
Article 1 – paragraph 7
Regulation (EU) No 575/2013
Article 469a – subparagraph 2 a (new)
Article 469a – subparagraph 2 a (new)
EBA shall develop draft regulatory technical standards to further specify the terms and conditions of an exposure referred to in the second subparagraph. EBA shall submit those draft regulatory technical standards to the Commission by [nine month from the date of entry into force of this Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.