Activities of Jürgen KLUTE related to 2011/0202(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms PDF (2 MB) DOC (3 MB)
Amendments (46)
Amendment 150 #
Proposal for a regulation
Recital 12
Recital 12
(12) This Regulation does not prevent Member States from imposingMember States are encouraged to impose, where appropriate, equivalent requirements on undertakings that do not fall within itsthe scope of this Regulation.
Amendment 151 #
Proposal for a regulation
Recital 14
Recital 14
(14) This Regulation should not affect the ability of competent authorities to impose Competent authorities in the Member States are encouraged to impose, where appropriate, specific requirements under the supervisory review and evaluation process set out in Directive [inserted by OP.../.../EU of the European Parliament and of the Council of ... [on the access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms] that should be tailored to the specific risk profile of credit institutions and investment firms.
Amendment 157 #
Proposal for a regulation
Recital 16 a (new)
Recital 16 a (new)
(16a) Considering the devastating effects of the latest financial crisis the overall objectives of this regulation are to encourage economically useful banking activities that shall serve the general interest and to discourage unsustainable financial speculation without a real added value. This implies a comprehensive reform of the ways savings are channelled into productive investments. In order to safeguard a sustainable and diverse banking environment in Europe, competent authorities should be empowered to impose significantly higher capital requirements for systemically important institutions that are able, due to their business activities, to pose a threat to the global economy.
Amendment 158 #
Proposal for a regulation
Recital 18
Recital 18
(18) Since credit institutions and investment firms in the internal market are engaged in direct competition, monitoring requirements should be equivalent throughout the Union taking into account the different risk profiles of the institutions.
Amendment 164 #
Proposal for a regulation
Recital 26
Recital 26
(26) The capital requirements should be proportionate to the risks addressed. Low- risk institutions, with a particular focus on public and cooperative banks, should be treated differently than high-risk institutions. The latter should be obliged to fulfil higher capital requirements than the former. In particular the reduction in risk levels deriving from having a large number of relatively small exposures should be reflected in the requirements.
Amendment 171 #
Proposal for a regulation
Recital 43
Recital 43
Amendment 185 #
Proposal for a regulation
Recital 68
Recital 68
(68) A leverage ratio is a new regulatory and supervisory tool for the Union. In line with international agreements, it should be introduced first as an additional feature that can be applied on individual institutions at the discretion of supervisory authorities. Reporting obligations for institutions would allow appropriate review and calibration, with a view to migrating to a binding measure inin order to ensure the compulsory application of the leverage ratio from 20186.
Amendment 205 #
Proposal for a regulation
Recital 76 a (new)
Recital 76 a (new)
(76a) For the continuous provision of financial services to households and firms a stable funding structure is necessary. Therefore specific provisions requiring institutions to maintain stable funding should be introduced from 01.01.2018. As soon as the Basel Committee's proposals are finalised on liquid reserves and on limits to unstable funding, the Commission should propose legislation to define specific standards within a year of each specific recommendation.
Amendment 213 #
Proposal for a regulation
Recital 87
Recital 87
(87) TAfter recommendation of the ESRB and the EBA the Commission should also be empowered to adopt, by means of an urgency procedure, a temporary increase in the level of own funds, risk weights, liquidity and leverage requirements or any prudential requirements that is necessary to respond to market developments. Such provisions should be applicable for a period not exceeding 6 month2 years, unless the European Parliament or the Council has objected to the delegated act within a period of six weeks. The Commission should state the reasons for the use of the urgency procedure.
Amendment 220 #
Proposal for a regulation
Recital 89 a (new)
Recital 89 a (new)
(89a) When drafting technical standards according to this Directive, the European Banking Authority and the Commission have to ensure that those standards and their requirements can be applied by all different institutions concerned in a way that is proportionate to the scale and complexity of the institutions and their activities.
Amendment 221 #
Proposal for a regulation
Recital 90 a (new)
Recital 90 a (new)
(90a) Regarding the fact, that also social and environmental risks can increase the risk of default as for instance was the case of palm oil producers in Indonesia being criticised for environmental destruction, the Commission is asked to launch a study considering the possibility to include environmental and social criteria into the risk assessment to internalize such external effects.
Amendment 240 #
Proposal for a regulation
Article 4 – paragraph 1 – point 1
Article 4 – paragraph 1 – point 1
(1) ‘credit institution’ means an undertaking the business of which is to receive deposits or other repayable funds from the public and, to grant credits for its own account and to offer payment services;
Amendment 253 #
Proposal for a regulation
Article 4 – paragraph 1 – point 23 – point c
Article 4 – paragraph 1 – point 23 – point c
(c) Tier 2 capital that is equal to or less than 250 % of own funds;
Amendment 517 #
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) in case the special purpose entity is settled outside the EU it provides publicly accessible information about the jurisdiction in which it is based, its annual accounts and the amount of taxes paid.
Amendment 583 #
Proposal for a regulation
Article 87 a (new)
Article 87 a (new)
Article 87a Own funds requirements for systemically important institutions 1. By way of derogation of Article 87 (1) competent authorities shall be empowered to apply (a) a Common Equity Tier 1 capital ratio of 10 %; (b) a Tier 1 capital ratio of 12 %; (c) a total capital ratio of 18 %; for systemically important institutions. 2. EBA shall define in close cooperation with national supervisors until 31.12.2013 what constitutes a systemically important institution, taking into account the following elements: a) exposure classes; b) complexity of business activities; c) deposit to loan ratio; d) share of KMU funding; e) trading on own account; f) share of public customers; g) funding of services of general interest; h) social and environmental impact of the project portfolio; i) respect of ethical and social standards; j) internal incentive structures; k) on and off balance sheet items; l) interconnectedness and systemic relevance leading to the too-big-to-fail problem.
Amendment 619 #
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 governments 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 629 #
Proposal for a regulation
Article 115 – paragraph 3 a (new)
Article 115 – paragraph 3 a (new)
Amendment 646 #
Proposal for a regulation
Article 118 – paragraph 1 – introductory part
Article 118 – paragraph 1 – introductory part
Exposures that comply with the following criteria shall be assigned a risk weight of 75 % * 0.7619:
Amendment 736 #
Proposal for a regulation
Article 145 – paragraph 1 – subparagraph 1 – point d – introductory part
Article 145 – paragraph 1 – subparagraph 1 – point d – introductory part
(d) exposures to central governments of the Member States and their regional governments, local authorities and administrative bodies in a Member State provided:
Amendment 794 #
Proposal for a regulation
Article 238 – paragraph 1 – introductory part
Article 238 – paragraph 1 – introductory part
1. The originator institution of a traditional securitisation may exclude 75% of the securitised exposures from the calculation of risk- weighted exposure amounts and expected loss amounts if either of the following conditions is fulfilled:
Amendment 797 #
Proposal for a regulation
Article 240 – paragraph 1 – point a
Article 240 – paragraph 1 – point a
(a) in the case of a traditional securitisation, exclude from its calculation of risk-weighted exposure amounts, and, as relevant, expected loss amounts, 75% of the exposures which it has securitised;
Amendment 799 #
Proposal for a regulation
Article 244 – paragraph 1
Article 244 – paragraph 1
In calculating risk-weighted exposure amounts for the securitised exposures, where the conditions in Article 239 are met, the originator institution of a synthetic securitisation shall, subject to Article 245, use the relevant calculation methodologies set out in this Section and not those set out in Chapter 2. For institutions calculating risk-weighted exposure amounts and expected loss amounts under Chapter 3, the expected loss amount in respect of such exposures shall be zero25% of the expected loss amount if the exposure has not been transferred.
Amendment 893 #
Proposal for a regulation
Article 394 – paragraph 1 – subparagraph 1
Article 394 – paragraph 1 – subparagraph 1
An institution, other than when acting as an originator, a sponsor or original lender, shall be exposed to the credit risk of a securitisation position in its trading book or non-trading book only if the originator, sponsor or original lender has explicitly disclosed to the institution that it will retain, on an ongoing basis, a material net economic interest which, in any event, shall not be less than 25 %.
Amendment 894 #
Proposal for a regulation
Article 394 – paragraph 1 – subparagraph 2 – introductory part
Article 394 – paragraph 1 – subparagraph 2 – introductory part
Only any of the following qualifies as retention of a material net economic interest of not less than 25%:
Amendment 895 #
Proposal for a regulation
Article 394 – paragraph 1 – subparagraph 2 – point a
Article 394 – paragraph 1 – subparagraph 2 – point a
(a) retention of no less than 25 % of the nominal value of each of the tranches sold or transferred to the investors;
Amendment 896 #
Proposal for a regulation
Article 394 – paragraph 1 – subparagraph 2 – point b
Article 394 – paragraph 1 – subparagraph 2 – point b
(b) in the case of securitisations of revolving exposures, retention of the originator's interest of no less than 25 % of the nominal value of the securitised exposures;
Amendment 897 #
Proposal for a regulation
Article 394 – paragraph 1 – subparagraph 2 – point c
Article 394 – paragraph 1 – subparagraph 2 – point c
(c) retention of randomly selected exposures, equivalent to no less than 25 % of the nominal amount of the securitised exposures, where such exposures would otherwise have been securitised in the securitisation, provided that the number of potentially securitised exposures is no less than 100 at origination;
Amendment 898 #
Proposal for a regulation
Article 394 – paragraph 1 – subparagraph 2 – point d
Article 394 – paragraph 1 – subparagraph 2 – point d
(d) retention of the first loss tranche and, if necessary, other tranches having the same or a more severe risk profile than those transferred or sold to investors and not maturing any earlier than those transferred or sold to investors, so that the retention equals in total no less than 25 % of the nominal value of the securitised exposures.
Amendment 900 #
Proposal for a regulation
Article 394 – paragraph 4 – point b a (new)
Article 394 – paragraph 4 – point b a (new)
(ba) German covered bonds
Amendment 915 #
Proposal for a regulation
Article 400 – paragraph 1 – point 2
Article 400 – paragraph 1 – point 2
(2) ‘Retail deposit’ means a liability to a natural person or to a small and medium sized enterprise where the aggregate liability to such clients or group of connected clients is less than 1 million EUR. Deposits of corporates' can be considered as retail deposits when their annual turnover is less than 50 Mio. Euro.
Amendment 930 #
Proposal for a regulation
Article 402 – paragraph 1
Article 402 – paragraph 1
Where a credit institution does not meet, or is expected not to meet the requirement set out in Article 401(1), it shall immediately notify the competent authorities and shall submit without undue delay to the competent authority a plan for the timely restoration of compliance with Article 401. Until such compliance has been restored, the credit institution shall report the items daily by the end of each business day unless the competent authority authorises a lower frequency and a longer delay. Competent authorities shall only grant such authorisations based on the individual situation of a credit institution and taking into account the scale and complexity of the institution's activities. They shall monitor the implementation of the restoration plan and shall require a more timely restoration if appropriate.
Amendment 1011 #
Proposal for a regulation
Article 404 – paragraph 2 – point a – point iii a (new)
Article 404 – paragraph 2 – point a – point iii a (new)
(iii a) the issuer of transferable assets and the investing institution are both part of the same institutional protection scheme referred to in 108(7)(b), provided that they meet all the conditions laid down in Article 108(7).
Amendment 1280 #
Proposal for a regulation
Article 416 – paragraph 6 – subparagraph 1
Article 416 – paragraph 6 – subparagraph 1
Institutions shall determine the exposure value of items listed in Annex II and of credit derivatives in accordance with either the Mark-to-Market Method set out in Article 269 or the Original Exposure Method set out in Article 270 without taking into account derivatives netting agreements. Institutions may use the Original Exposure Method to determine the exposure value of items listed in Annex II and of credit derivatives only if they also use this method for determining the exposure value of these items for the purposes of meeting the own funds requirements set out in Article 87.
Amendment 1281 #
Proposal for a regulation
Article 416 – paragraph 6 – subparagraph 2
Article 416 – paragraph 6 – subparagraph 2
Amendment 1294 #
Proposal for a regulation
Article 417 – paragraph 1 – subparagraph 1 a (new)
Article 417 – paragraph 1 – subparagraph 1 a (new)
Competent authorities shall publicly disclose the leverage ratio of supervised institutions on a quarterly basis as of 1 January 2014.
Amendment 1383 #
Proposal for a regulation
Article 443 a (new)
Article 443 a (new)
Article 443a Application of stricter prudential requirements by national authorities 1. National authorities, either on their own initiative or based on an ESRB recommendation pursuant to Regulation (EU) No 1092/2010, may impose stricter prudential requirements on institutions where macro-prudential risks are identified as posing a threat to financial stability at national level in the following areas: (a) the level of own funds laid, down in Article 87(1) and Article 87a (new); (b) the requirements for large exposures, laid down in Article 381 and Articles 384 to 392; (c) the liquidity requirements and the leverage ratio. 2. At least five working days before the introduction of stricter prudential requirements national authorities shall notify the ESRB in accordance with paragraph 1(a) to (c) in view of the identified macroprudential risks to financial stability. In accordance with Regulation (EU) No 1092/2010 and taking into account confidentiality requirements, the ESRB shall play a coordination role by assessing, upon request of the Commission or of at least three Member States, the financial stability concerns and possible unintended consequences and spill over effects on other Member States that could result from the imposition of the stricter requirements. 3. The ESRB shall inform the national authorities of other Member States about the initiative of the Member State that is planning to introduce stricter prudential requirements. 4. Where the ESRB determines that the identified macro-prudential risks to financial stability, as assessed in accordance with paragraph 2, that led to stricter prudential requirements cease to exist, the national authorities may repeal the stricter requirements and the original provisions of this Regulation shall apply. 4. The ESRB may, in accordance with Regulation (EU) No 1092/2010, recommend the extension of the list of prudential requirements specified in paragraph 1.'
Amendment 1423 #
Proposal for a regulation
Article 448 a (new)
Article 448 a (new)
Article 448 a Own funds requirements for systemically important institutions 1. By way of derogation from points (a) and (b) of Article 87a (1) (new), systemically important institutions shall satisfy the following own funds requirements: (a) at all times during the period from 1 January 2013 to 31 December 2013: (i) a Common Equity Tier 1 capital ratio of a level that falls within a range with a lowest value of 3.5% and a highest value of 10%; (ii) a Tier 1 capital ratio of a level that falls within a range with a lowest value of 4.5% and a highest value of 12%; (b) at all times during the period from 1 January 2014 to 31 December 2014: (i) a Common Equity Tier 1 capital ratio of a level that falls within a range of 6 % to 10 %; (ii) a Tier 1 capital ratio of a level that falls within a range of 8 % to 12%. (c) at all times during the period from 1 January 2015 to 31 December 2015: (i) a Common Equity Tier 1 capital ratio of a level that falls within a range of 8% to 10%; (ii) a Tier 1 capital ratio of a level that falls within a range of 10% to 12%. 2. In the event that systemically important institutions are unable to fulfil the recapitalisation requirements on their own, national governments shall provide support. In this case national governments shall ensure that the institutions are able to meet the requirements defined in Art 87. 3. Competent authorities shall: (a) determine the levels of the Common Equity Tier 1 and Tier 1 capital ratios in the ranges specified in points (a) and (b) of paragraph 1 that institutions shall satisfy; (b) publish the determination made in accordance with point (a).
Amendment 1550 #
Proposal for a regulation
Article 481 – paragraph 3 – subparagraph 1
Article 481 – paragraph 3 – subparagraph 1
By 31 December 2015, EBA shall report to the Commission on whether and how it would be appropriate to ensure that institutions use stable sources of funding, including an assessment of the impact on the business and risk profile of Union institutions or on financial markets or the economy and bank lending, with a particular focus on lending to small and medium enterprises and on trade financing, including lending under official export credit insurance schemes.
Amendment 1553 #
Proposal for a regulation
Article 481 – paragraph 3 – subparagraph 2
Article 481 – paragraph 3 – subparagraph 2
By 31 December 2016, the Commission shall, on the basis of these reports, submit a report, and if appropriate a legislative proposal to the European Parliament and Council.
Amendment 1567 #
Proposal for a regulation
Article 482 – paragraph 1
Article 482 – paragraph 1
1. TIn line with Recital 68 the Commission shall submit by 31 December 2016 a report on the impact and effectiveness of the leverage ratio to the European Parliament and the Council. Where appropriate, the report shall be accompanied byto the European Parliament and the Council by 31 December 2014 a legislative proposal on the introduction of one or more levels for the leverage ratio for on and off-balance sheet items that institutions would be required to meet, suggesting an adequate calibration for those levels and any appropriate adjustments to the capital measure and the total exposure measure as defined in Article 416.
Amendment 1570 #
Proposal for a regulation
Article 482 – paragraph 2 – introductory part
Article 482 – paragraph 2 – introductory part
2. For the purposes of paragraph 1, the EBA shall report to the Commission and the European Parliament by 31 October 20164 on at least the following:
Amendment 1579 #
Proposal for a regulation
Article 482 – paragraph 2 – point g
Article 482 – paragraph 2 – point g
(g) whether 35% would be an appropriate level for the leverage ratio based on Tier 1 capital and, if not, what level would be the appropriate one;
Amendment 1583 #
Proposal for a regulation
Article 482 – paragraph 2 – point g a (new)
Article 482 – paragraph 2 – point g a (new)
(g a) whether there is scope for introducing a differentiated leverage cap for different business activities;
Amendment 1584 #
Proposal for a regulation
Article 482 – paragraph 2 – point g b (new)
Article 482 – paragraph 2 – point g b (new)
(g b) whether it is justified that public development institutions can operate under a higher leverage compared to for- profit institutions;
Amendment 1585 #
Proposal for a regulation
Article 482 – paragraph 2 – point g c (new)
Article 482 – paragraph 2 – point g c (new)
(g c) whether it can be justified to exempt exposures in the calculation of the leverage ratio which have an assigned risk weight of 5% or less.
Amendment 1591 #
Proposal for a regulation
Article 482 – paragraph 3 – introductory part
Article 482 – paragraph 3 – introductory part
3. The report referred to in paragraph 2 shall cover at least the period from 1 January 2013 until 30 June 20164 and shall take account of at least the following: