Activities of Vicky FORD related to 2012/0150(COD)
Plenary speeches (2)
Framework for the recovery and resolution of credit institutions and investment firms - Deposit guarantee schemes (debate)
Framework for the recovery and resolution of credit institutions and investment firms - Deposit guarantee schemes (debate)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directives 77/91/EEC and 82/891/EC, Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC and 2011/35/EC and Regulation (EU) No 1093/2010 PDF (1 MB) DOC (640 KB)
Amendments (137)
Amendment 178 #
Proposal for a directive
Recital 18 a (new)
Recital 18 a (new)
(18a) Financial institutions vary greatly in their structural complexity, especially when operating in multiple jurisdictions. There is also great variance in business risk given the diversity of business lines and the variety of European business models. It would therefore be appropriate for competent authorities to be able to take the individual specifications of the institution into account when assessing the capital and funding structure of the individual institution.
Amendment 181 #
Proposal for a directive
Recital 19
Recital 19
(19) RSupervisory and resolution authorities should have the power to require changes to the capital and legal structures and organization of institutions or groups in order to remove practical impediments to the application of resolution tools and ensure the resolvability of the entities concerned. Due to the potentially systemic nature of all institutions, it is crucial in order to maintain financial stability that authorities have the possibility to resolve any institution. In order to respect the right to conduct business laid down by Article 16 of the Charter of Fundamental Rights, the authorities’ discretion should be limited to what is necessary in order to simplify the structure and operations of the institution solely to improve its resolvability. In addition, any measure imposed for such purposes should be consistent with Union law. Measures should be neither directly nor indirectly discriminatory on ground of nationality, and be justified by the overriding reason of being conducted in the public interest in financial stability. To determine whether an action was taken in the general public interest, resolution authorities, acting in the general public interest, should be able to achieve their resolution objectives without encountering impediments to the application of resolution tools or their ability to exercise the powers conferred to them. Furthermore, an action should not go beyond the minimum necessary to attain the objectives. When determining the measures to be taken, resolution authorities should take into account the warnings and recommendations of the European Systemic Risk Board established under Regulation (EU) No 1092/2010 of the European Parliament and of the Council of 24 November 2010 on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board.
Amendment 198 #
Proposal for a directive
Recital 26
Recital 26
(26) Where an institution is failing or likely to fail, national authorities should have at their disposal a minimum harmonised set of resolution tools and powers. Their exercise should be subject to common conditions, objectives, and general principles. Once the resolution authority has taken the decision to put the institution under resolution, normal insolvency proceedings should be excluded. Member States should be able to confer onto the resolution authorities powers and tools in addition to those conferred onto them under this Directive. The use of these additional tools and powers, however, should comply with the resolution principles and objectives as set out in this Directive. In particular, the use of such tools or powers should not impinge on the effective resolution of cross-border groups and should ensure that shareholders bear losses. Any additional powers should only be available as a last resort. They should only be used in cases where the resolution powers in this Directive would not suffice to protect financial stability or to protect taxpayers’ funds.
Amendment 203 #
Proposal for a directive
Recital 29
Recital 29
(29) When applying resolutions tools and exercising resolution powers, resolution authorities should make sure that shareholders and creditors bear an appropriate share of the losses, that the managers are replaced, that the costs of the resolution of the institution are minimised, and that all creditors of an insolvent institution that are of the same class are treated in a similar manner. Resolution authorities may depart from the general principle of equal (pari passu) treatment of creditors within the same class where it is justified by reasons of public interest and in particular in order to underpin financial stability. When the use of the resolution tools involves the granting of State aid, interventions should have to be assessed in accordance with the relevant State aid provisions. State aid may be involved, inter alia, where resolution funds or deposit guarantee funds intervene to assist in the resolution of failing institutions.
Amendment 226 #
Proposal for a directive
Recital 49
Recital 49
(49) In general, resolution authorities should apply the bail-in tool in a way that respects the pari passu treatment of creditors and the statutory ranking of claims under the applicable insolvency law and the pari passu treatment of creditors, except to the extent a departure from the equitable treatment is justifiable on the grounds of public interest and in order to underpin financial stability. Losses should first be absorbed by regulatory capital instruments and should be allocated to shareholders either through the cancellation of shares or through severe dilution. Where those instruments are not sufficient, subordinated debt should be converted or written down. Finally, senior liabilities should be converted or written down if the subordinate classes have been converted or written down entirely.
Amendment 237 #
Proposal for a directive
Recital 67
Recital 67
(67) Cooperation should take place both with regard to subsidiaries of Union or third country groups and with regard to branches of Union or third country institutions. Subsidiaries of third country groups are enterprises established in the Union and therefore are fully subject to Union law, including the resolution tools provided for in this Directive. It is however necessary that Member States maintain the right to apply the resolution tools also to branches of institutions having their head office in third countries, when the recognition and application of third country proceedings related to a branch would endanger the financial stability in the Union or when Union depositors would not receive equal treatment with third country depositors. For this reasons, EBA should have the right, after consulting the national resolution authorities, to refuse recognition of third country proceedings with regard to Union branches of third countries institutions. If such unequal treatment of depositors is mandated by the banking, resolution or insolvency laws of the third country, Member States should have the right also to impose a prior subsidiarisation requirement on such branches.
Amendment 242 #
Proposal for a directive
Recital 70
Recital 70
Amendment 291 #
Proposal for a directive
Article 2 – paragraph 1 – point 19
Article 2 – paragraph 1 – point 19
(19) ‘resolution’ power’ means any power as referred to in Articles 56(1) to 63;
Amendment 301 #
Proposal for a directive
Article 2 – paragraph 1 – point 73
Article 2 – paragraph 1 – point 73
(73) ‘termination right’ means a right to terminate a contract on an event of default as defined in or for the purposes of the contract, and includes any related right to accelerate, or close out, set-off or net obligations or any related provision that suspends, modifies or extinguishes an obligation of a party to the contract to make a payment;
Amendment 331 #
Proposal for a directive
Article 3 – paragraph 5a (new)
Article 3 – paragraph 5a (new)
5a. Where the resolution authority designated in accordance with paragraph 1 is not the central bank, any decision of the resolution authority pursuant to this Directive shall be communicated to the central bank without delay.
Amendment 408 #
Proposal for a directive
Article 5 – paragraph 5
Article 5 – paragraph 5
5. The competent authorities shall ensure that institutions include in recovery plans appropriate conditions and procedures to ensure the timely implementation of recovery actions as well as a wide range of recovery options. CThe competent authorities shall ensure that firms test their recovery plans againstinstitutions' recovery plans would be robust in a range of scenarios of financial distress, varying in their severity including system wide events, legal-entity specific stress and group-wide stress.
Amendment 415 #
Proposal for a directive
Article 5 – paragraph 6 – subparagraph 1
Article 5 – paragraph 6 – subparagraph 1
Amendment 433 #
Proposal for a directive
Article 6 – paragraph 2 a (new)
Article 6 – paragraph 2 a (new)
2a. When assessing the appropriateness of the recovery plans, the competent authority should take into consideration the appropriateness of the institution's capital and funding structure to the level of complexity of the organisational structure and the risk profile of the institution.
Amendment 436 #
Proposal for a directive
Article 6 – paragraph 3
Article 6 – paragraph 3
3. Where competent authorities assess that there are material deficiencies in the recovery plan, or potential material impediments to its implementation, they shall notify the institution of their assessment and require the institution to submit, within threesix months, a revised plan demonstrating how those deficiencies or impediments have bewill be addressed within a reasonable timescale. Before requiring an institution to resubmit a recovery plan the competent addresseduthority shall give the institution the opportunity to state its opinion on that requirement.
Amendment 446 #
Proposal for a directive
Article 6 – paragraph 4 – point c
Article 6 – paragraph 4 – point c
(c) make changes to the firm strategy, for example the legal separation of certain particularly risky financial activities from deposit-taking banks within the banking group;
Amendment 453 #
Proposal for a directive
Article 6 – paragraph 4 a (new)
Article 6 – paragraph 4 a (new)
Amendment 549 #
Proposal for a directive
Article 9 – paragraph 4 – point n a (new)
Article 9 – paragraph 4 – point n a (new)
(na) and where applicable any opinion expressed by the institution in relation to the resolution plan;
Amendment 551 #
Proposal for a directive
Article 9 – paragraph 5 – subparagraph 1
Article 9 – paragraph 5 – subparagraph 1
EBA, in consultation with the ESRB, shall develop draft regulatory technical standards specifying a range of scenarios for the evthe contents of failure for the purposes of paragraph 2the resolution plan.
Amendment 566 #
Proposal for a directive
Article 11 – paragraph 1
Article 11 – paragraph 1
1. Member States shall ensure that resolution authorities draw up group resolution plans. Group resolution plans shall include both a plan for resolution at the level of the parent undertaking or institution subject to consolidated supervision pursuant to Article 125 and 126 of Directive 2006/48/EC and theor resolution of the group through break up and resolution of the subsidiary institutions. Resolution authorities may require that group resolution plans include, for information purposes only, any resolution plans for the individual subsidiary institutions drawn up in accordance with Article 9 of this Directive. The group resolution plans shall also include plans for the resolution of the companies referred to in points (c) and (d) of Article 1 and plans for the resolution of institutions with branches in other Member States in compliance with the provisions of Directive 2001/24/EC.
Amendment 586 #
Proposal for a directive
Article 11 – paragraph 3 a (new)
Article 11 – paragraph 3 a (new)
3a. The group resolution plan shall not have a disproportionate impact on any Member State. In particular, it shall have regard to the continuity of essential services, financial stability and the market share of any subsidiary in its Member State. The group resolution plan may only deviate from this principle where necessary to avoid significant adverse effects on financial stability in the Union.
Amendment 636 #
Proposal for a directive
Article 14 – paragraph 2
Article 14 – paragraph 2
2. Within four months of the date of receipt of a notification made in accordance with paragraph 1, the institution shall propose to the resolutioncompetent authority possible measures to address or remove ththe substantive impediments identified in the notification. The resolutioncompetent authorityies, in consultation with the competentresolution authorities, shall assess whether those measures effectively address or remove the impedimentssubstantive in question.
Amendment 642 #
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
3. Where the resolutioncompetent authority assesses that the measures proposed by an institution in accordance with paragraph 2 do not effectively reduce or remove the impediments in question, it shall, in consultation with the competent authorities, identifywhere necessary and proportionate, subject to paragraph 5 and in consultation with the resolution authority, require the institution to take alternative measures that may achieve that objective, and notify in writing those measures to the institution.
Amendment 650 #
Proposal for a directive
Article 14 – paragraph 4 – point b
Article 14 – paragraph 4 – point b
(b) requiring the institution to limit its maximum individual and aggregateor any member of its group to reduce its exposures;
Amendment 654 #
Proposal for a directive
Article 14 – paragraph 4 – point d
Article 14 – paragraph 4 – point d
(d) requiring the institution to divestsell specificed assets;
Amendment 656 #
Proposal for a directive
Article 14 – paragraph 4 – point e
Article 14 – paragraph 4 – point e
(e) requiring the institution to limit or cease specific existing or proposed activitierefrain from engaging in certain lines of business;
Amendment 658 #
Proposal for a directive
Article 14 – paragraph 4 – point f
Article 14 – paragraph 4 – point f
Amendment 662 #
Proposal for a directive
Article 14 – paragraph 4 – point g
Article 14 – paragraph 4 – point g
(g) requiring changes to legal or operational structures of the institution sto as to reduce complexity in order to ensure that critical functions may be legally and economically separated from other functions through the application ofsimplify or change its corporate structure to facilitate the separation of critical functions by applying the resolution tools;
Amendment 664 #
Proposal for a directive
Article 14 – paragraph 4 – point h
Article 14 – paragraph 4 – point h
Amendment 669 #
Proposal for a directive
Article 14 – paragraph 4 – point i
Article 14 – paragraph 4 – point i
Amendment 671 #
Proposal for a directive
Article 14 – paragraph 4 – point i a (new)
Article 14 – paragraph 4 – point i a (new)
(ia) requiring an institution to take steps to meet the minimum requirement for eligible liabilities parent undertaking, or a company referred to in point c and d of Article 1 to issue the debt instruments or loans referred to in Article 39.2
Amendment 675 #
Proposal for a directive
Article 14 – paragraph 5
Article 14 – paragraph 5
5. Resolution authorities shall not base a determination in accordance with paragraph 1 on impediments resulting from factors beyond the control of the institution, including: (a) the operational and financial capacity of the resolution authority and resolution financing arrangements; (b) impediments which exist or arise as a result of compliance with Union or national legislation or regulations; (c) the absence of agreements pursuant to Article 11 or agreements pursuant to Article 88 with relevant third country authorities.
Amendment 681 #
Proposal for a directive
Article 14 – paragraph 7
Article 14 – paragraph 7
7. Before indentifying any measure referred to in paragraph 3 as necessary and proportionate, resolution authorities shall duly consider the potential effect of those measures on the stability of the financial system in other Member Statingle market for financial services.
Amendment 686 #
Proposal for a directive
Article 14 – paragraph 8 – subparagraph 1
Article 14 – paragraph 8 – subparagraph 1
Amendment 691 #
Proposal for a directive
Article 15 – paragraph 1
Article 15 – paragraph 1
1. The group level resolution authorities and the resolution authorities of the subsidiaries, in consultationagreement with the relevant competent authorities, shall consult each other within the resolution college and shall take all reasonable steps to reach a joint decision in regards to the application of measures identified in accordance with Article 14(3).
Amendment 701 #
Proposal for a directive
Article 15 – paragraph 2
Article 15 – paragraph 2
2. The group level resolution authority, in cooperation with the consolidating supervisor and EBA in accordance with Article 25(1) of Regulation (EU) No 1093/2010, shall prepare and submit a report to the parent undertakings or institution subject to consolidated supervision and to the resolution authorities of the subsidiaries. The report shall be prepared in consultationagreement with the competent authorities, and shall analyse the substantive impediments to the effective application of the resolution tools and the exercising of the resolution powers in relation to the group. The report shall alsoconsider the impact on the institution's business model and recommend any measures that, in the authorities' view, are necessary or appropriate to remove those impediments.
Amendment 711 #
Proposal for a directive
Article 15 – paragraph 6 – subparagraph 1
Article 15 – paragraph 6 – subparagraph 1
In the absence of a joint decision within four months from the date of submission of the report referred to in paragraphs 1 or 2, the group level resolution authority, in cooperation with the consolidating supervisor, shall make its own decision on the appropriate measures to be taken in accordance with Article 14(3) in relation to the group as a whole.
Amendment 717 #
Proposal for a directive
Article 15 – paragraph 6 – subparagraph 2
Article 15 – paragraph 6 – subparagraph 2
The decision shall be set out in a document containing a full reasoningreasoned document and shall take into account the views and reservaany objections of the other competent authorities and resolution authorities expressed during the four months period. The decision shall be provided to the parent undertaking or institution whichIt shall give reasons for rejecting any proposals of the resolution authorities of the subsidiaries and an assessment of the expected impact of its subject to consolidated supervision by the group level resolution authoritydecision on the economy and financial stability in the Member State of the competent authorities where concerns have been raised.
Amendment 722 #
Proposal for a directive
Article 15 – paragraph 6 – subparagraph 3
Article 15 – paragraph 6 – subparagraph 3
Amendment 724 #
Proposal for a directive
Article 15 – paragraph 6 – subparagraph 4
Article 15 – paragraph 6 – subparagraph 4
Amendment 730 #
Proposal for a directive
Article 15 – paragraph 6 a (new)
Article 15 – paragraph 6 a (new)
Amendment 731 #
Proposal for a directive
Article 15 – paragraph 6 b (new)
Article 15 – paragraph 6 b (new)
6b. The resolution authority of each Member State where a subsidiary is located may propose additional action in relation to a subsidiary in their Member State if it considers it necessary to ensure continuity of critical functions or to avoid significant adverse effects on financial stability, and provided that it does not interfere with the actions to be taken according to the group resolution authority in respect of the group as a whole. It must provide its proposal to the consolidating supervisor, group resolution authority and members of the resolution college. Within two months, these authorities may raise any concerns or objections. In the absence of any objections, the resolution authority may take the proposed action. Where the group resolution authority or other member of the college has raised an objection, the resolution authority must duly consider those objections and concerns and may then make a decision. The decision shall be set out in a reasoned document and shall take into account any objection of the other competent authorities and resolution authorities expressed during the four-month period. It shall give reasons for rejecting any proposals of the resolution authorities of the subsidiaries and an assessment of the expected impact of its decision on the economy and financial stability in the Member State of the authorities where concerns have been raised.
Amendment 732 #
Proposal for a directive
Article 15 – paragraph 6 c (new)
Article 15 – paragraph 6 c (new)
Amendment 733 #
Proposal for a directive
Article 16
Article 16
Amendment 747 #
Proposal for a directive
Article 17
Article 17
Amendment 749 #
Proposal for a directive
Article 17 – paragraph 1
Article 17 – paragraph 1
1. The parent undertakings and institutions which are subject to consolidated supervision pursuant to Articles 125 and 126 of Directive 2006/48/EC shall submit to the consolidating supervisor an application for authorisation of any proposed group financial support agreement proposed pursuant to Article 16. The application shall contain the text of the proposed agreement and identify the group entities that propose to be parties.
Amendment 752 #
Proposal for a directive
Article 17 – paragraph 4 – subparagraph 1 a (new)
Article 17 – paragraph 4 – subparagraph 1 a (new)
After reaching a joint decision by all interested competent authorities, the consolidating supervisor shall grant the authorisation if the terms of the proposed agreement are consistent with the conditions for financial support set out in Article 19.
Amendment 758 #
Proposal for a directive
Article 17 – paragraph 6
Article 17 – paragraph 6
Amendment 762 #
Proposal for a directive
Article 18
Article 18
Amendment 772 #
Proposal for a directive
Article 19
Article 19
Amendment 774 #
Proposal for a directive
Article 19 – paragraph 1 – introductory part
Article 19 – paragraph 1 – introductory part
1. Financial support pursuant to Article 16 may only be provided in accordance with a group financial support agreement if the following conditions are met:
Amendment 781 #
Proposal for a directive
Article 20
Article 20
Amendment 785 #
Proposal for a directive
Article 21
Article 21
Amendment 792 #
Proposal for a directive
Article 21 – paragraph 4
Article 21 – paragraph 4
Amendment 797 #
Proposal for a directive
Article 22
Article 22
Amendment 809 #
Proposal for a directive
Article 23 – paragraph 1 – introductory part
Article 23 – paragraph 1 – introductory part
1. Where a competent authority judges that an institution does not meet or is likely to breach the requirements of Directive 2006/48/EC, Member States shall ensure that competent authorities, , have at their disposal, in addition to the measures referred to in Article 136 of Directive 2006/48/EC where applicable, in particular, the following measures:
Amendment 837 #
Proposal for a directive
Article 23 – paragraph 2
Article 23 – paragraph 2
Amendment 874 #
Proposal for a directive
Article 25 – paragraph 3
Article 25 – paragraph 3
3. EBA may on its own initiativeat the request of the consolidating supervisor assist the competent authorities in reaching an agreement in accordance with Article 19 of Regulation (EU) No 1093/2010.
Amendment 898 #
Proposal for a directive
Article 26 – paragraph 3
Article 26 – paragraph 3
3. Subject to different provisions of this Directive, the resolution objectives are ofResolution authorities shall accord equal significance, and to the resolution authoriobjectives shalland balance them as appropriate to the nature and circumstances of each case.
Amendment 910 #
Proposal for a directive
Article 27 – paragraph 1 – point a
Article 27 – paragraph 1 – point a
(a) the competent authority or resolution authority determines that the institution is failing or likely to fail;
Amendment 917 #
Proposal for a directive
Article 27 – paragraph 2 – subparagraph 1 – point a
Article 27 – paragraph 2 – subparagraph 1 – point a
(a) the institution is in breach or there are objective elements to support a determination that the institution will be in breach, in the near future, of the capital requirements for continuing authorisation in a way that would justify the withdrawal of the authorisation by the competent authority because the institution has incurred or is likely to incur in losses that will deplete all or substantially all of its own funds;
Amendment 922 #
Proposal for a directive
Article 27 – paragraph 2 – subparagraph 1 – point c
Article 27 – paragraph 2 – subparagraph 1 – point c
(c) the institution is or there are objective elements to support a determination that the institution will be, in the near future,is likely to be unable to pay its obligations as they fall due;
Amendment 932 #
Proposal for a directive
Article 27 – paragraph 4
Article 27 – paragraph 4
Amendment 936 #
Proposal for a directive
Article 27 – paragraph 5
Article 27 – paragraph 5
Amendment 947 #
Proposal for a directive
Article 29 – paragraph 1 – point b
Article 29 – paragraph 1 – point b
(b) creditors of the institution under resolution bear losses after the shareholders in accordance with the order of priority of their claims pursuant to Article 43 of this Directive;
Amendment 961 #
Proposal for a directive
Article 29 – paragraph 1 – point f a (new)
Article 29 – paragraph 1 – point f a (new)
(fa) claims of depositors with deposits that are guaranteed in accordance with Directive 94/19/EC are adequately protected on insolvency of the credit institution.
Amendment 967 #
Proposal for a directive
Article 29 – paragraph 2
Article 29 – paragraph 2
Amendment 969 #
Proposal for a directive
Article 29 – paragraph 2 a (new)
Article 29 – paragraph 2 a (new)
2a. In order to give effect to paragraph 1(g), Member States shall ensure that: (i) claims of depositors with deposits that are guaranteed in accordance with Directive 94/19/EC are granted a preferential claim so as to have a higher priority ranking over the claims of ordinary unsecured, non-preferred creditors in the event of insolvency of the credit institution; (ii) the depositor guarantee scheme subrogating to the rights of depositors with deposits that are guaranteed in accordance with Directive 94/19/EC is granted a preferential claim corresponding to the higher priority ranking than depositors pursuant to point (i), but only so far as concerns payments made to depositors up to the amount of their guaranteed deposits under the scheme.
Amendment 978 #
Proposal for a directive
Article 30 – paragraph 1
Article 30 – paragraph 1
1. Before taking resolution action and in particular, for the purposes of Articles 31, 34, 36, 41, 42 and 65,42 resolution authorities shall ensure that a fair and realistic valuation of the assets and liabilities of the institution is carried out by a person independent from any public authority, including the resolution authority, and the institution. The resolution authority shall endorse that valuation. Where independent valuation is not possible due to the urgency in the circumstances of the case, resolution authorities may carry out the valuation of the assets and liabilities of the institution.
Amendment 989 #
Proposal for a directive
Article 30 – paragraph 4
Article 30 – paragraph 4
Amendment 991 #
Proposal for a directive
Article 30 – paragraph 5
Article 30 – paragraph 5
Amendment 994 #
Proposal for a directive
Article 30 – paragraph 6
Article 30 – paragraph 6
Amendment 995 #
Proposal for a directive
Article 30 – paragraph 7 – subparagraph 1 – introductory part
Article 30 – paragraph 7 – subparagraph 1 – introductory part
EBA shall develop draft regulatory technical standardguidelines to specify the following criteria for the purposes of paragraphs 1 and 2 of this Article, and for the purposes of Article 66:
Amendment 997 #
Proposal for a directive
Article 30 – paragraph 7 – subparagraph 1 – point c
Article 30 – paragraph 7 – subparagraph 1 – point c
Amendment 1011 #
Proposal for a directive
Article 31 – paragraph 7 a (new)
Article 31 – paragraph 7 a (new)
7 a. Any additional powers may be used only where the Member State has determined the existence of a systemic crisis and one of the following conditions is met: (a) the competent ministry, in consultation with the resolution authority and competent authority, determine that the application of the resolution tools in paragraph 2 of this Article would not be likely to avoid significant adverse effects on financial stability; or the competent ministry determines that the application of the resolution tools would not suffice to protect the public interest where extraordinary public support or extraordinary liquidity assistance from the central bank has previously been given to the institution.
Amendment 1053 #
Proposal for a directive
Article 36 – paragraph 12
Article 36 – paragraph 12
Amendment 1063 #
Proposal for a directive
Article 37 – paragraph 3 – subparagraph 1
Article 37 – paragraph 3 – subparagraph 1
Member States shall ensure that resolution authorities may apply the bail-in tool for the purpose referred to in point (a) of paragraph 2 only if there is a realistic prospect that the application of that tool, in conjunction with measures implemented in accordance with the business reorganisation plan required by Article 47 will, in addition to achieving relevant resolution objectives, restore the institution in question to financial soundness and long-term viabilityachieve the resolution objectives.
Amendment 1077 #
Proposal for a directive
Article 38 – paragraph 2 – subparagraph 1 – point a
Article 38 – paragraph 2 – subparagraph 1 – point a
Amendment 1106 #
Proposal for a directive
Article 38 – paragraph 2 – subparagraph 1 – point d
Article 38 – paragraph 2 – subparagraph 1 – point d
(d) liabilities with an original maturity of less than one month or less;
Amendment 1132 #
Proposal for a directive
Article 38 – paragraph 3
Article 38 – paragraph 3
3. Where resolution authorities apply the bail-in tool, they may exclude liabilities from the application of the write-down and conversion powers liabilities arising from derivatives that do not fall within the scope of point (d) of paragraph 2, if that exclusion is necessary or appropriate to achieve the objectives specified in points (a) and (b) of Article 26(2), if that exclusion is necessary to reduce a serious threat to financial stability.
Amendment 1153 #
Proposal for a directive
Article 39 – paragraph 1
Article 39 – paragraph 1
1. Member States shall ensure that the institutions maintain, at all times, a sufficient aggregate amount of own funds and eligible liabilities expressed as a percentage of the total liabilities of the institution that do not qualify as own funds under Section 1 of Chapter 2 of Title V of Directive 2006/48/EC or under Chapter IV of Directive 2006/49/ECsubordinated debt and senior unsecured debt with at least 12 months remaining on its term that is clearly subject to the bail-in power expressed as a percentage of the risk-weighted assets of the institution.
Amendment 1162 #
Proposal for a directive
Article 39 – paragraph 2 – point e
Article 39 – paragraph 2 – point e
(e) the instruments have an original remaining maturity of at least one year.
Amendment 1167 #
Proposal for a directive
Article 39 – paragraph 3 – introductory part
Article 39 – paragraph 3 – introductory part
3. The minimum aggregate amount pursuant to paragraph 1 shall be determined on the basis of at least the following criteria:
Amendment 1181 #
Proposal for a directive
Article 39 – paragraph 3 – subparagraph 1a (new)
Article 39 – paragraph 3 – subparagraph 1a (new)
Member States may specify additional criteria to which the relevant authority must have regard in determining the minimum aggregate amount.
Amendment 1191 #
Proposal for a directive
Article 39 – paragraph 6
Article 39 – paragraph 6
6. Resolution authorities shall inform EBA of the minimum amount they have determined for each institution under their jurisdiction. EBA shall assess the impact on institutions and report to the Commission by 1 January 2018 at the latest on the implementation of the requirement under paragraph 1. In particular EBA shall report to the Commission whether there are divergences regarding the implementation at national level of that requirement.
Amendment 1193 #
Proposal for a directive
Article 39 – paragraph 7
Article 39 – paragraph 7
Amendment 1211 #
Proposal for a directive
Article 41 – paragraph 2 a (new)
Article 41 – paragraph 2 a (new)
2 a. Where capital has been written down in accordance with Articles 51-55 and bail-in has been applied pursuant to article 37(2)(a) and the level of write- down based on the preliminary valuation per article 30 is found to exceed requirements when assessed against the definitive valuation per article 30(5), then a write-up mechanism should be applied to reimburse creditors and then shareholders to the extent necessary.
Amendment 1232 #
Proposal for a directive
Article 43 – paragraph 2
Article 43 – paragraph 2
2. When applying the write down and conversion powers in compliance with points (c) and (d) of paragraph 1, resolution authorities shall allocate the losses represented by the aggregate amount equally between liabilities of the same rank by reducing the principal amount of, or outstanding amount payable in respect of, those liabilities to the same extent pro rata to their value. Resolution authorities shall be entitled to allocate losses in a manner that does not result in the equal treatment of creditors of the same class to the extent the rationale for doing so is justifiable on the grounds of public interest or to maximise the value for the benefit of all creditors as a whole.
Amendment 1239 #
Proposal for a directive
Article 44 – paragraph 4 – subparagraph 1
Article 44 – paragraph 4 – subparagraph 1
EBA shall develop draft regulatory technical standardguidelines specifying methodologies and the principles referred to in points (a) and (b) of paragraph 3 on the valuation of liabilities arising from derivatives.:
Amendment 1269 #
Proposal for a directive
Article 49 – paragraph 3
Article 49 – paragraph 3
3. Member States shall require institutions to ensure that there are no procedural impediments to the conversion of liabilities to ordinary shares or other instruments of ownership existing by virtue of their instruments of incorporation or statutes, including pre- emption rights for shareholders or requirements for the consent of shareholders to an increase in capital.
Amendment 1271 #
Proposal for a directive
Article 50 – paragraph 1
Article 50 – paragraph 1
1. Member States shall require institutions to include in the contractual provisions governing any eligible liability, Additional Tier 1 instrument or Tier 2 instrument that is governed by the law of a jurisdiction that is not a Member State a term by which the creditor or party to the agreement creating the liability recognises that the liability may be subject to the write down and, conversion and powers to amend the maturity of debt instruments or vary interest payments, and agrees to be bound by any reduction of principal or outstanding amount due, conversion or cancellation that is effected by the exercise of the those powers by a resolution authority.
Amendment 1280 #
Proposal for a directive
Article 52 – paragraph 1 – subparagraph 1 – point b
Article 52 – paragraph 1 – subparagraph 1 – point b
(b) the principal amount of relevant capital instruments is reduced to zerothe extent necessary to absorb the loss;
Amendment 1302 #
Proposal for a directive
Article 61 – paragraph 2
Article 61 – paragraph 2
2. Any suspension under paragraph 1 shall not apply to: (a) eligible deposits within the meaning of Directive 94/19/EC; (b) payment and delivery obligations owed to systems or operators of systems designated for the purposes of Directive 98/26/EC, central counterparties, and central banks.
Amendment 1304 #
Proposal for a directive
Article 63 – paragraph 2
Article 63 – paragraph 2
Amendment 1305 #
Proposal for a directive
Article 63 – paragraph 3
Article 63 – paragraph 3
3. A person may exercise a termination right under a financial contract before the end of the period referred to in paragraph 1 if that person receives notice from the resolution authority that the rights and liabilities covered by the netting arrangement shall not be either (a) transferred to another entity or (b) remain with the institution under resolution upon which the resolution authority will be applying the bail in tool in accordance with Article 37(2) (a).
Amendment 1306 #
Proposal for a directive
Article 63 – paragraph 4
Article 63 – paragraph 4
Amendment 1307 #
Proposal for a directive
Article 63 – paragraph 4 a (new)
Article 63 – paragraph 4 a (new)
4 a. Termination rights may be exercised upon expiry of the stay if there is a subsequent event of default (e.g. purchaser or bridge institution defaults), or earlier if a counterparty is notified that their contract has not been transferred or will not be kept in the bailed in institution per Article 63(3).
Amendment 1315 #
Proposal for a directive
Article 66 – paragraph 1
Article 66 – paragraph 1
For the purposes of Article 65, Member States shall ensure that a fair and realistic valuation is carried out by an independent person after the partial transfers or write down or conversion has been effected. That valuation shall be distinct from the valuation carried out under Article 30 unless it replaces a provisional valuation carried out under Article 30(5). The valuation may be carried out by the authority responsible for the normal insolvency proceedings under which the institution is wound up, within those proceedings or through separate proceedings in accordance with national law.
Amendment 1318 #
Proposal for a directive
Article 66 – paragraph 3 – introductory part
Article 66 – paragraph 3 – introductory part
3. The valuation shall be in accordance with the provisions and the methodology laid down in Article 30(1) toand (52), and shall:
Amendment 1320 #
Proposal for a directive
Article 66 – paragraph 3 a (new)
Article 66 – paragraph 3 a (new)
3 a. Member States may specify further assumptions for the purpose of the valuation.
Amendment 1381 #
Proposal for a directive
Article 82 – paragraph 2
Article 82 – paragraph 2
The group resolution authoritiesy shall communicate on requestordinate the flow of all relevant information between resolution authorities. In particular, the group level resolution authority shall provide the resolution authorities in other Member States with all the relevant information in a timely manner in view of facilitating the exercise of the tasks referred to in points (b) to (h ) of the second subparagraph of Article 80(1).
Amendment 1386 #
Proposal for a directive
Article 83 – paragraph 1 – introductory part
Article 83 – paragraph 1 – introductory part
1. Where a resolution authority decides, or is notified pursuant to Article 74(3), that an institution that is a subsidiary in a group is failing or likely to fail, that authority shall notify the following information without delay to the group level resolution authority and consolidating supervisor, if different, and to the resolution authorities that are members of the resolution college for the group in question:
Amendment 1394 #
Proposal for a directive
Article 83 – paragraph 4
Article 83 – paragraph 4
4. If the group level resolution authority, after consultation with the other resolution authorities in accordance with paragraph 2, assesses that the failure of the institution in question, or the resolution action or other measures notified in accordance with point (b) of paragraph 1, would have a detrimental impact on the group or on affiliated institutions in other Member States, the group level resolution authority shall, no later than 24 hours after receiving the notification under paragraph 1, propose a non-binding group resolution scheme and submit it to the resolution college.
Amendment 1396 #
Proposal for a directive
Article 83 – paragraph 5 – point a a (new)
Article 83 – paragraph 5 – point a a (new)
(a a) The group resolution scheme shall avoid having a disproportionate impact on any Member State that is a member of the resolution college. In particular, it should have regard to the continuity of essential services, financial stability and the market share of any subsidiary in its Member State. The group resolution scheme may only deviate from this principal where necessary to avoid significant adverse effects on financial stability in the Union.
Amendment 1399 #
Proposal for a directive
Article 83 – paragraph 5 a (new)
Article 83 – paragraph 5 a (new)
5 a. Any resolution authority that is a member of the resolution college may take action in addition to the group resolution scheme if it considers that this is necessary to protect financial stability or to protect the public interest. It shall notify all members of the resolution college of any action it plans to take.
Amendment 1400 #
Proposal for a directive
Article 83 – paragraph 6
Article 83 – paragraph 6
Amendment 1402 #
Proposal for a directive
Article 83 – paragraph 6
Article 83 – paragraph 6
6. If any member of the resolution college disagrees with the group resolution scheme proposed by the group level resolution authority and considers that it needs tomay take independent resolution actions or measures other than those proposed in the scheme in relation to an institution or group entity for reasons of financial stability, it may refer within 24 hours the matter to EBA in accordance with Article 19 of Regulation (EU) No 1093/2010established in its jurisdiction for reasons of financial, economic and social stability. It should notify the resolution college and all members of any planned action beyond what is outlined in the group resolution scheme, in accordance with Article 83(11).
Amendment 1404 #
Proposal for a directive
Article 83 – paragraph 7
Article 83 – paragraph 7
7. By way of derogation from Article 19 (2) of Regulation (EU) No 1093/2010, and subject to the safeguards in Article 38 of that Regulation, EBA shall take a decision within 24 hours. The subsequent action or measure of the resolution authority shall be in conformity with the decision of EBA.
Amendment 1417 #
Proposal for a directive
Article 89 – paragraph 2 – introductory part
Article 89 – paragraph 2 – introductory part
2. Where confidential information originates in another Member State, resolution authorities or, competent authorities and competent ministries may not disclose that information to relevant third country authorities unless the following conditions are met:
Amendment 1422 #
Proposal for a directive
Article 91 – paragraph 1
Article 91 – paragraph 1
1. Member States shall establish a financing arrangement or arrangements for the purpose of ensuring the effective application by the resolution authority of the resolution tools and powers. The financing arrangements shall be used only in accordance with the resolution objectives and the principles set out in Articles 26 and 29.
Amendment 1428 #
Proposal for a directive
Article 91 – paragraph 2
Article 91 – paragraph 2
2. Member States shall ensure that the financing arrangements have access to adequate financial resources.
Amendment 1429 #
Proposal for a directive
Article 91 – paragraph 3 – introductory part
Article 91 – paragraph 3 – introductory part
3. For the purpose provided for in paragraph 2, financing arrangements shallmay in particular have:
Amendment 1432 #
Proposal for a directive
Article 91 – paragraph 3 a (new)
Article 91 – paragraph 3 a (new)
3 a. For the purpose provided for in paragraph 2, financing arrangements shall in particular have: (a) the power to raise ex post extraordinary contributions as specified in Article 95, and (b) the power to contract borrowings and other forms of support as specified in Article 96.
Amendment 1436 #
Proposal for a directive
Article 91 – paragraph 3 – point b
Article 91 – paragraph 3 – point b
Amendment 1437 #
Proposal for a directive
Article 91 – paragraph 3 – point c
Article 91 – paragraph 3 – point c
Amendment 1449 #
Proposal for a directive
Article 93
Article 93
Amendment 1468 #
Proposal for a directive
Article 94 – paragraph 1
Article 94 – paragraph 1
1. In order to reach the target level specified in Article 93Where appropriate, Member States shall ensure that contributions are raised at least annually from the institutions authorised in their territory.
Amendment 1528 #
Proposal for a directive
Article 95 – paragraph 1
Article 95 – paragraph 1
1. Where the available financial means are not sufficient to cover the losses, costs or other expenses incurred by the use of the financing arrangements, Member States shall ensure that extraordinary ex post contributions are raised from the institutions authorised in their territory, in order. The amount of extraordinary ex post contributions shall be determined by the competent authority subject to a limit set by the competent ministry which may be less than the amount required to cover the additional amounts. These extraordinary contributions shall be allocated between institutions in accordance with the rules set out in Article 94(2).
Amendment 1536 #
Proposal for a directive
Article 97
Article 97
Amendment 1568 #
Proposal for a directive
Article 98
Article 98
Amendment 1569 #
Proposal for a directive
Article 98 – paragraph 1
Article 98 – paragraph 1
Amendment 1570 #
Proposal for a directive
Article 98 – paragraph 2
Article 98 – paragraph 2
Amendment 1575 #
Proposal for a directive
Article 98 – paragraph 3
Article 98 – paragraph 3
Amendment 1576 #
Proposal for a directive
Article 98 – paragraph 3 – subparagraph 1 – point a
Article 98 – paragraph 3 – subparagraph 1 – point a
Amendment 1577 #
Proposal for a directive
Article 98 – paragraph 3 – subparagraph 1 – point b
Article 98 – paragraph 3 – subparagraph 1 – point b
Amendment 1578 #
Proposal for a directive
Article 98 – paragraph 3 – subparagraph 2
Article 98 – paragraph 3 – subparagraph 2
Amendment 1581 #
Proposal for a directive
Article 98 – paragraph 4
Article 98 – paragraph 4
Amendment 1584 #
Proposal for a directive
Article 98 – paragraph 5
Article 98 – paragraph 5
Amendment 1585 #
Proposal for a directive
Article 98 – paragraph 6
Article 98 – paragraph 6
Amendment 1587 #
Proposal for a directive
Article 98 – paragraph 7
Article 98 – paragraph 7
Amendment 1590 #
Proposal for a directive
Article 98 – paragraph 8
Article 98 – paragraph 8
Amendment 1591 #
Proposal for a directive
Article 98 – paragraph 8 – point a
Article 98 – paragraph 8 – point a
Amendment 1592 #
Proposal for a directive
Article 98 – paragraph 8 – point b
Article 98 – paragraph 8 – point b
Amendment 1593 #
Proposal for a directive
Article 98 – paragraph 8 – point c
Article 98 – paragraph 8 – point c
Amendment 1594 #
Proposal for a directive
Article 98 – paragraph 8 – point d
Article 98 – paragraph 8 – point d
Amendment 1599 #
Proposal for a directive
Article 99 – paragraph 1
Article 99 – paragraph 1
1. Member States shall ensure that, where the resolution authorities take resolution action, and provided that this action ensures that depositors continue having access to their deposits, the deposit guarantee scheme to which the institution is affiliated is liable, up to the amount of covered deposits, for the amount of losses covered deposits would have had to bear if they had not been excluded from the bail- in tool, however not exceeding the amount that it would have had to bear if the institution had been wound up under normal insolvency proceedings.
Amendment 1607 #
Proposal for a directive
Article 99 – paragraph 2
Article 99 – paragraph 2
2. Member States shall ensure that, under the national law governing normal insolvency proceedings, the deposit guarantee schemes rank at least pari passu with unsecured non- preferred claims.
Amendment 1649 #
Proposal for a directive
Article 113 – paragraph 1
Article 113 – paragraph 1
EBA shall create a permanent internal committee pursuant to Article 41 of Regulation (EU) No 1093/2010 for the purpose of preparing the EBA decisions provided for in this Directive, which must conform to the framework established by Regulation N° 1093/2010, in particular in accordance with Article 38.1 of that Regulation, the EBA shall ensure that no decision impinges in any way on the fiscal responsibilities of Member States. That internal committee shall be at least composed of the resolution authorities referred to in Article 3 of this Directive.