BETA

20 Amendments of Michael THEURER related to 2015/0270(COD)

Michael THEURER

Proposal for a regulation
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 to complete 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. Concrete steps in that direction shcould ~~alread~~only be taken a~~s a priority~~fter sufficient effective risk reducing measures have been undertaken, 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.

2016/12/20
Committee: ECON

Michael THEURER

Proposal for a regulation
Recital 17

(17) EDIS shcould 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 objectiven insurance scheme should all conditions prescribed in this regulation have been met. However, such risk sharing implied by steps to reinforce the Banking Union ~~must proceed in parallel with~~is possible only once sufficient risk reducing measures designed to break the bank- sovereign link more directly have been undertaken.

2016/12/20
Committee: ECON

Michael THEURER

Proposal for a regulation
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 three years, gradually progress into a co-insurance scheme and ultimately into a fully mutualised deposit insurance scheme.deleted

2016/12/20
Committee: ECON

Michael THEURER

Proposal for a regulation
Recital 27

(27) In principle, contributions should be collected from the industry 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.

2016/12/20
Committee: ECON

Michael THEURER

Proposal for a regulation
Recital 30

(30) Ensuring effective and sufficient financing of the Deposit Insurance Fund is of paramount importance to the credibility 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.

2016/12/20
Committee: ECON

Michael THEURER

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) 806/2014
Article -41 a (new)

Article -41a Entry into application of this Chapter 1. This Chapter shall apply from no earlier than the latest of the following dates: (a) the date of application, or, where relevant, the expiry of the transposition period of the international standard for Total Loss Absorbing Capacity (TLAC), for Global Systemically Important Banks (G-SIBs), and of revised rules in relation to a minimum requirement for own funds and eligible liabilities (MREL), for all credit institutions affiliated to the participating DGSs and after completion of the build-up of according buffers of sufficient level and quality (at least 8% of total liabilities) to allow for the effective, efficient and orderly resolution of a bank in line with the BRRD; (b) the date of application, or, where relevant, the expiry of the transposition period of an insolvency ranking for credit institutions, harmonised at Union level, in relation to subordinated debt; (c) the date of application, or, where relevant, the expiry of the transposition period of a minimum harmonization in the field of insolvency law, as a minimum a framework for business insolvency, harmonised at Union level, in relation to the early restructuring of companies and harmonized rules on the ranking of secured creditors in order to prevent and better handle the pressing issue of nonperforming loans; (d) the date of application, or, where relevant, the expiry of the transposition period of an act amending Regulation (EU) No 575/2013 and Directive 2013/36/EU, resulting in a binding leverage ratio requirement with additional requirements for G-SIBs. (e) the date of application or, where relevant, the expiry of the transposition period of the bank structural reform; (f) the date of application or, where relevant, the expiry of the transposition period of harmonised rules for moratorium tools that contribute to the stabilisation by the relevant authorities of an institution in the period before, and possibly after, an intervention. 2. The Commission shall submit to the European Parliament and the Council a report on the application or, where relevant, the transposition of the measures according to paragraph 1. The report shall verify the compliance with the adherence by all credit institutions to the minimum capital requirements in the baseline scenario of an Asset Quality Review (AQR) for all credit institutions affiliated to the participating DGSs. Based on this report, the European Parliament and the Council shall decide in accordance with the ordinary legislative procedure on the exact date of application of this Chapter.

2016/12/21
Committee: ECON

Michael THEURER

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 806/2014
Part IIa – title I – chapter 2

~~[...]~~Chapter 2 deleted Co-insurance

2016/12/21
Committee: ECON

Michael THEURER

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 806/2014
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 four years (‘co-insurance period’).~~deleted

2016/12/21
Committee: ECON

Michael THEURER

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 806/2014
Article 41d - paragraph 2

2. In case a participating DGS encounters a payout event or is used in resolution in accordance with Article 109 of Directive 2014/59/EU or Article 79 of this Regulation, it may claim funding from the DIF of a share of its liquidity need as defined in Article 41f of this Regulation. The share shall increase in accordance with Article 41e.deleted

2016/12/21
Committee: ECON

Michael THEURER

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 806/2014
Article 41d - paragraph 3

3. The DIF shall also cover a share of the loss of the participating DGS as defined by Article 41g. The share shall increase in accordance with Article 41e. The participating DGS shall repay the amount of funding it obtained under paragraph 2, less the amount of loss cover, in accordance with the procedure set out in Article 41o.deleted

2016/12/21
Committee: ECON

Michael THEURER

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 806/2014
Part IIa – title I – chapter 3 – title

Full insurance Insurance

2016/12/21
Committee: ECON

Michael THEURER

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 806/2014
Article 41h – paragraph -1 (new)

-1. This Chapter shall apply not before the date of application or, where relevant, the expiry of the transposition period of a risk adequate regulatory treatment of sovereign debt held by credit institutions and of a sovereign debt restructuring procedure that supports the prevention and facilitates the resolution of potential future cases of sovereign debt overhang.

2016/12/21
Committee: ECON

Michael THEURER

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 806/2014
Article 41h – paragraph 1

1. As from the end of the core- insurance period, the participating DGS shall be ~~fully~~ insured by EDIS in accordance with this Chapter.

2016/12/21
Committee: ECON

Michael THEURER

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 806/2014
Article 41i – paragraph 1 - introductory part

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:

2016/12/21
Committee: ECON

Michael THEURER

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 806/2014
Article 41j – paragraph 1 – introductory part

1. A participating DGS shall only be reinsured~~, co-insured or fully~~ or insured by EDIS during the year following any of the dates set out below, if, by that date, its available financial means raised by contributions referred to in Article 10(1) of Directive 2014/49/EU amount to at least the following percentages of the total amount of covered deposits of all credit institutions affiliated to the participating DGS: - by 3 July 20178: 0.214%; ~~- - by 3 July 2019~~- date of entry into application of the reinsurance: 0.2815%; - ~~by 3 July 2020~~one year after entry into application of the reinsurance: 0.28%; - ~~by 3 July 2021~~two years after entry into application of the reinsurance: 0.265%; - ~~by 3 July 2022~~three years after entry into application of the reinsurance: 0.203%; - ~~by 3 July 2023~~four years after entry into application of the reinsurance: 0.1135%; - ~~by 3 July 2024: 0%.~~five years after entry into application of the reinsurance: 0.4%;

2016/12/21
Committee: ECON

Michael THEURER

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 806/2014
Article 41j – paragraph 1 a (new)

1a. By way of derogation from paragraph 1 the available financial means of institutional protection schemes as referred to in Article 113 (7) of Regulation (EU) No 575/2013 that are officially recognised as DGSs according to Article 4 (1) of Directive (EU) No 49/2014 shall amount to at least the following percentages of the total amount of covered deposits of all credit institutions affiliated to the recognised DGS: – date of entry into application of the reinsurance: 0.3%; – one year after entry into application of the reinsurance: 0.4%; – two years after entry into application of the reinsurance: 0.45%; – three years after entry into application of the reinsurance: 0.5%; – four years after entry into application of the reinsurance: 0.55%; – five years after entry into application of the reinsurance: 0.6%.

2016/12/21
Committee: ECON

Michael THEURER

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 806/2014
Article 41j – paragraph 2

2. The Commission, after consulting the Board and with the consent of the Council, which shall for this purpose act by simple majority, may approve a derogation from the requirements set out in paragraph 1 for ~~duly justified~~strictly necessary reasons linked to the business cycle in the respective Member State, the impact pro- cyclical contributions may have, or to a payout event which occurred at national level. Those derogations must be temporary and may be subject to the fulfilment of certain conditions. During this time the participating DGS shall not have access to the individual risk-based subfunds of the other participating DGSs.

2016/12/21
Committee: ECON

Michael THEURER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 b – paragraph 5 –introductory part

5. The ~~Commission shall be empowered to adopt delegated acts in accordance with Article 93 to specify the following:~~calculation of the contributions to the joint risk-based subfund shall be based on the amount of covered deposits and the degree of risk incurred by each participating DGS relative to all other participating DGSs. The Council and the European Parliament will adopt, in the ordinary legislative procedure, based on a legislative proposal by the Commission and at the latest together with the decision under Art. 41 aa (new) paragraph 2, provisions to further specify the calculation formula, specific indicators, risk classes for participating DGSs, thresholds for risk weights assigned to specific risk classes, and other necessary elements.

2016/12/21
Committee: ECON

Michael THEURER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 f - title

Article 74f Voluntary ~~lending to and~~ borrowing from non- participating DGS

2016/12/21
Committee: ECON

Michael THEURER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 f – paragraph 3

3. The Board may decide to lend to other deposit guarantee schemes within non-participating Member States upon request. Article 12 of Directive 2014/49/EU shall apply by analogy with respect to the borrowing conditions.deleted

2016/12/21
Committee: ECON