BETA

Activities of Ashley FOX related to 2016/0360A(COD)

Shadow reports (1)

REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements and amending Regulation (EU) No 648/2012 PDF (2 MB) DOC (1 MB)

2016/11/22
Committee: ECON
Dossiers: 2016/0360A(COD)
Documents: PDF(2 MB) DOC(1 MB)

Amendments (63)

Caroline NAGTEGAAL, Wolf KLINZ, Lieve WIERINCK, Ashley FOX, Petr JEŽEK

Proposal for a regulation
Recital 54 a (new)

(54a) The main purpose of this regulation is promoting prudential behaviour of financial institutions. Before granting lower risk weights to green or social liabilities the European Commission should carry out an impact assessment that shows that lower risk weighting is justified by an overestimation of the risk over an entire economic cycle under the standard approach.

2018/02/02
Committee: ECON

Ashley FOX, Brian HAYES, Eva KAILI, Caroline NAGTEGAAL

Proposal for a regulation
Recital 56 a (new)

(56a) In line with the Fundamental Review of the Trading Book (FRTB) that the Basel Committee proposed in order to introduce the risk factor modellability assessment framework based on real price criteria, banks should be able to assess their required threshold for a risk factor based on reliable price data that reflects the market reality. Transaction data originated only from the bank may not suffice for a reliable risk assessment. This regulation should allow banks the use of data aggregators, that can also be provided by third parties, as an instrument that pools and sources real prices across the markets, broadens the view of the bank’s risk assessment and improves there liability of the data used to model the risk factor threshold.

2018/02/02
Committee: ECON

Proposal for a regulation
Recital 70 a (new)

(70a) In order to allow the Commission to consider the impact of capital requirement rules on smaller credit institutions, and whether application of rules designed for internationally active credit institutions are suitable for non- systemic firms, a review clause should be introduced that stipulates that the Commission will report on whether and how credit institutions which are not internationally-active or potentially systemically important, should comply with capital requirements obligations laid down in parts Two-Five and Eight of this Regulation. A proportionate framework that appropriately mitigates risk, while facilitating competition and diversity in banking, will aid financial stability and resilience by diversifying risk; support wider economic growth by increasing the sources of funding, improving productivity and creating jobs; and benefit citizens by making mortgages and other lending cheaper.

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 5

~~(5) In Article 7, paragraphs 1 and 2 are replaced by the following: [...]~~deleted

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 6

Regulation (EU) No 575/2013
Article 8

~~(6) Article 8 is replaced by the following: [...]~~deleted

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 7

Regulation (EU) 575/2013
Article 11 – paragraph 4 – subparagraph 1

EU parent institutions shall comply with Part Six on the basis of their consolidated situation, where the group comprises one or more credit institutions or investment firms that are authorised to provide the investment services and activities listed in points (3) and (6) of Section A of Annex I to Directive 2004/39/EC. Pending the report from the Commission referred to in Article 508(2) of this Regulation, and where the group comprises omainly investment firms, competent authorities may exempt the EU parent institutions from compliance with Part Six on a consolidated basis, taking into account the nature, scale and complexity of the investment firm's activities.

2018/02/02
Committee: ECON

Ashley FOX, Eva KAILI

Proposal for a regulation
Article 1 – paragraph 1 – point 14

Regulation (EU) No 575/2013
Article 36 – paragraph 1 – point b

~~"(b) intangible assets;" (http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=~~(14) In paragraph 1 of Article 36, point (b) is replaced by the following: "(b) intangible assets with the exception of software that has a market value. Institutions shall only deduct from CET1, the difference between the exposure value of the software calculated in accordance with article 111(1) and the market value, when the exposure value is higher than the market value. EBA shall develop draft regulatory technical standards to define the term "software" and to determine the methodology to calculate the market value referred to in this paragraph. EBA shall submit those draft regulatory technical standards to the Commission by xxx 201x; Power is conferred on the Commission to adopt the regulatory technical standards referred to in point b in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010." Or. en)

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 19 – point b

Regulation (EU) No 575/2013
Article 52 – paragraph 1 – point p

(b) point (p) is replaced by the following: "(p) the law or contractual provisions governing the instruments require that, upon a decision by the resolution authority to exercise the power referred to in Article 59 of Directive 2014/59/EU, the principal amount of the instruments is to be written down on a permanent basis or the instruments are to be converted to Common Equity Tier 1 instruments;";deleted

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 19 – point c

Regulation (EU) No 575/2013
Article 52 – paragraph 1 – point q

(q) the instruments may only be issued under, or be otherwise subject to the laws of a third country where, under those laws,: i) the exercise of the write down and conversion power referred to in Article 59 of Directive 2014/59/EU is effective and enforceable based on statutory provisions or legally enforceable contractual provisions that recognise resolution or other write-down or conversion actions; or ii) when the issuer is a resolution entity on which the local competent authority is empowered with similar write down and/or conversion powers as the ones referred in article 59 of Directive 2014/59/EU.

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 19 a (new)

Regulation (EU) No 575/2013
Article 54 – paragraph 1 – point a –

(19a) In Article 54, paragraph 1, point (a) is replaced by the following: "(a) a trigger event occurs when the Common Equity Tier 1 capital ratio of the institution referred to in point (a) of Article 92(1) falls below either of the following: (i) 5,125 %; (ii) a level higher than 5,125 %, where determined by the institution and specified in the provisions governing the instrument;~~" (http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=en)~~ The trigger will be eligible if it meets one of the following conditions: The trigger must be calculated under CRR or equivalent regulation. A regulatory equivalence decision will be provided by the Commission, however for the interim period prior to Commission decision, equivalence may be based on regulatory assessments conducted by other authorities. The trigger will be eligible if under local rules, the conversion trigger is set at a level that is equivalent or higher to the 5,125% trigger calculated under EU rules." Or. en

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point c

Regulation (EU) No 575/2013
Article 63 – point n

(c) point (n) is replaced by the following: ‘(n) the law or contractual provisions governing the instruments require that, upon a decision by the resolution authority to exercise the power referred to in Article 59 of Directive 2014/59/EU, the principal amount of the instruments is to be written down on a permanent basis or the instruments are to be converted to Common Equity Tier 1 instruments; ’deleted

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 27

Regulation (EU) No 575/2013
Article 72b – paragraph 2 – point d – point ii

(ii) the law governing the liabilities specifies that in the event of normal insolvency proceedings as defined in point 47 of Article 2(1) of Directive 2014/59/EU, the claim on the principal amount of the instruments ranks below claims arising from any of the excluded liabilities referred to in Article 72a(2); or

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 27 (new)

Regulation (EU) No 575/2013
Article 72b – paragraph 2 – point d – point ii a (new)

(iia) the instruments are issued by a resolution entity which does not have on its balance sheet any excluded liabilities as referred to in Article 72s(2) that rank pari passu or junior to eligible liabilities instruments;

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 27

Regulation (EU) No 575/2013
Article 72b – paragraph 2 – point e

(e) the instruments are issued by a resolution entity which does not have on its balance sheet any excluded liabilities as referred to in Article 72a(2) that rank pari passu or junior to eligible liabilities instruments;deleted

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 27

Regulation (EU) No 575/2013
Article 72b – paragraph 2 – point g

(g) the liabilities are not subject to ~~any~~ set off arrangements or netting rights that would undermine their capacity to absorb losses in resolution;

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 27

Regulation (EU) No 575/2013
Article 72b – paragraph 2 – point h

(h) the provisions governing the liabilities do not include any incentive for their principal amount to be called, redeemed, repurchased prior to their maturity or repaid early by the institution, as applicable except for the situation referred to in paragraph 2a of Article 72c;

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 27

Regulation (EU) No 575/2013
Article 72b – paragraph 2 – point k

(k) subject to paragraphs 2 and 2a of Article 72c, the liabilities may only be called, redeemed, repurchased or repaid early where the conditions laid down in Articles 77 and 78 are met;

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 27

(l) the provisions governing the liabilities do not indicate explicitly or implicitly that the liabilities would or might be called, redeemed, repurchased or repaid early, as applicable by the resolution entity other than in case of the insolvency or liquidation of the institution and the institution does not otherwise provide such an indication;deleted

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 27

Regulation (EU) No 575/2013
Article 72b – paragraph 2 – point m

(27) In Article 72b, paragraph 2, point (m) is replaced by the following: "(m) the provisions governing the liabilities do not give the holder the right to accelerate the future scheduled payment of interest or principal, other than in(i) in the case of the insolvency or liquidation of the resolution entity; or (ii) in the case that the holder does not receive payment on the instrument (interest or principal) when due that continues for at least 30 days;"

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 27

Regulation (EU) No 575/2013
Article 72b – paragraph 2 – point o

(o) the contractual provisions governing the liabilities require that, where the resolution authority exercises write down and conversion powers in accordance with Article 48 of Directive 2014/59/EU, the principal amount of the liabilities be written down on a permanent basis or the liabilities be converted to Common Equity Tier 1 instruments.deleted

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 27

Regulation (EU) No 575/2013
Article 72b – paragraph 3 – subparagraph 2

A~~n institution may decide not~~ resolution authority may permit an institution to include in eligible liabilities items the liabilities referred to in the first subparagraph.

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 27

Regulation (EU) No 575/2013
Article 72b – paragraph 4 – introductory part

4. Where a resolution authority permits an institution to takes a decision to count liabilities as referred to in the second subparagraph of paragraph 3, liabilities shall qualify as eligible liabilities instruments in addition to the liabilities referred to in paragraph 2, provided that:

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 27

The decision referred to in the second sub-paragraph of paragraph 3 shall specify whether the institution intends either to include the liabilities referred to in paragraph 4 in eligible liabilities items or not to include any of the liabilities referred to inA resolution authority may permit an institution to use the exemption in paragraph 3 or paragraph~~s 3 and~~ 4. An institution may not ~~decide to~~ include liabilities referred to in both paragraphs 3 and 4 in eligible liabilities items.

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 27

Regulation (EU) No 575/2013
Article 72b – paragraph 6

6. The ~~competent~~resolution authority shall consult the ~~resolution~~competent authority when examining whether the conditions of this Article are fulfilled.

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 27

Regulation (EU) No 575/2013
Article 72c – paragraph 2 a (new)

2 a. For the purposes of paragraph 1, where an eligible liabilities instrument includes an incentive for the issuer to call, redeem, repay or repurchase the instrument prior to the original stated maturity of the instrument, the maturity of the instrument shall be defined as the earliest possible date on which the issuer can exercise the redemption option and request redemption or repayment of the instrument.

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 32

Regulation (EU) 575/2013
Article 77 – heading

Article 77 Conditions for reducing own funds ~~and eligible liabilities~~

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 32

Regulation (EU) No 575/2013
Article 77 – point b

(b) effect the call, redemption, repayment or repurchase of Additional Tier 1~~, Tier 2 or eligible liabilities~~ or Tier 2 instruments as applicable, prior to the date of their contractual maturity..

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – title

Article 78 Supervisory permission for reducing own funds ~~and eligible liabilities~~

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 1 – introductory part

The competent authority shall grant permission for an institution to reduce, repurchase, call or redeem Common Equity Tier 1, Additional Tier 1, Tier 2 ~~or eligible liabilities instruments~~ where either of the following conditions is met:

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 1 – point a

(a) earlier than or at the same time as the action referred to in Article 77, the institution replaces the instruments referred to in Article 77 with own funds ~~or eligible liabilities instruments~~ of equal or higher quality at terms that are sustainable for the income capacity of the institution;

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 1 – point b

(b) the institution has demonstrated to the satisfaction of the competent authority that the own funds ~~and eligible liabilities~~ of the institution would, following the action in question, exceed the requirements laid down in this Regulation, in, Directive 2013/36/EU ~~and in Directive 2014/59/EU~~ by a margin that the competent authority considers necessary.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 1 – subparagraph 2

~~The competent authority shall consult the resolution authority before granting that permission.~~deleted

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 1 – subparagraph 3

Where an institution provides sufficient safeguards as to its capacity to operate with own funds above the amount of the requirements laid down in this Regulation, in Directive 2013/36/EU and in Directive 2014/59/EU, the resolution authority, after consulting the competent authority, may grant a general prior permission to that institution to effect calls, redemptions, repayments or repurchases of eligible liabilities instruments, subject to criteria that ensure that any such future actions will be in accordance with the conditions laid down in points (a) and (b) of this paragraph. This general prior permission shall be granted only for a certain time period, which shall not exceed one year, after which it may be renewed. The general prior permission shall only be granted for a certain predetermined amount, which shall be set by the resolution authority. Resolution authorities shall inform the competent authorities about any general prior permission granted.deleted

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 1 – subparagraph 4

Where an institution provides sufficient safeguards as to its capacity to operate with own funds above the amount of the requirements laid down in this Regulation, in Directive 2013/36/EU and in Directive 2014/59/EU, the competent authority, after consulting the resolution authority, may grant that institution a general prior permission to that institution to effect calls, redemptions, repayments or repurchases of eligible liabilities instruments, subject to criteria that ensure that any such future actions will be in accordance with the conditions laid down in points (a) and (b) of this paragraph. This general prior permission shall be granted only for a certain time period, which shall not exceed one year, after which it may be renewed. The general prior permission shall be granted for a certain predetermined amount, which shall be set by the competent authority. In case of Common Equity Tier 1 instruments, that predetermined amount shall not exceed 3% of the relevant issue and shall not exceed 10 % of the amount by which Common Equity Tier 1 capital exceeds the sum of the Common Equity Tier 1 capital requirements laid down in this Regulation, in Directive 2013/36/EU ~~and in Directive 2014/59/EU~~ by a margin that the competent authority considers necessary. In case of Additional Tier 1 instruments or Tier 2 instruments, that predetermined amount shall not exceed 10% of the relevant issue and shall not exceed 3 % of the total amount of outstanding Additional Tier 1 instruments or Tier 2 instruments, as applicable. ~~In case of eligible liabilities instruments, the predetermined amount shall be set by the by the resolution authority after it has consulted the competent authority.~~

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 2

2. When assessing under point (a) of paragraph 1 the sustainability of the replacement instruments for the income capacity of the institution, competent authorities shall consider the extent to which those replacement capital instruments ~~and liabilities~~ would be more costly for the institution than those they would replace.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 36

Regulation (EU) No 575/2013
Article 81 – paragraph 1 – introductory part

1. Minority interests shall comprise the sum of Common Equity Tier 1 ~~capital~~items where the following conditions are met:

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 36

Regulation (EU) No 575/2013
Article 81 – paragraph 1 – point a – point ii

(ii) an undertaking that is subject by virtue of applicable national law to the requirements of this Regulation and Directive 2013/36/EU or equivalent level of regulation and supervision;

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 36

Regulation (EU) No 575/2013
Article 81 – paragraph 1 – point a – point iii

(iii) an intermediate financial holding company in a third country that is subject to ~~the same rules as credit institutions of that third country and where the Commission has decided in accordance with Article 107(4) that those rules are at least equivalent to those of this Regula~~similar minimum prudential standards and level of supervision as an institution;

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 36

Regulation (EU) No 575/2013
Article 81 – paragraph 1 – point c

(c) the Common Equity Tier 1 ~~capital~~items, referred to in the introductory part of this paragraph, is owned by persons other than the undertakings included in the consolidation pursuant to Chapter 2 of Title II of Part One..

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 37

Regulation (EU) No 575/2013
Article 82 – point a – point ii

(ii) an undertaking that is subject by virtue of applicable national law to the requirements of this Regulation and Directive 2013/36/EU or equivalent level of regulation and supervision;

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 37

Regulation (EU) No 575/2013
Article 82 – point a – point iii

(iii) an intermediate financial holding company in a third country that is subject to the s~~ame rules as credit institutions of that third country and where the Commission has decided in accordance with Article 107(4) that those rules are at least equivalent to those of this Regula~~imilar minimum prudential standards and level of supervision as an institution;

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 55

Regulation (EU) No 575/2013
Article 132 a – paragraph 2 – subparagraph 2 a (new)

As part of this calculation, institutions should assume that a CIU increases leverage to the maximum extent allowed under its mandate or relevant legislation, where relevant.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 83

Regulation (EU) No 575/2013
Article 325 – paragraph 1 – point a

(a) from [~~date of applica~~two years after the adoption of th~~is R~~e regulat~~ion],~~ory technical standards referred to in Article 325 (8), Article 325k(3), Article 325v(5), Article 325x(8), and Article 325aq(3)] the standardised approach set out in Chapter 1a of this Title;

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 83

Regulation (EU) No 575/2013
Article 325 – paragraph 1 – point b

(b) from [~~date of application of this Regulatio~~two years after the adoption of the regulatory technical standards referred to in Article 325(8), Article 325ba(8) and (9), Article 325be(7), Article 325bg(9), Article 325bh(4), 325bk(4), 325bq(12), and the guidelines referred to in Article 325bn], the internal model approach set out in Chapter 1b of this Title only for those positions assigned to trading desks for which the institution has been granted a permission by competent authorities to use that approach as set out in Article 325ba;

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 83

(c) after [~~date of applica~~two years after the adoption of th~~is R~~e regulat~~ion]~~ory technical standards referred to in Article 325 (8), Article 325k(3), Article 325v(5), Article 325x(8), and Article 325aq(3)] , only institutions that meet the conditions defined in Article 325a(1) may use the simplified standardised approach referred to in paragraph 4 to determine their own funds requirements for market risks;

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 83

Regulation (EU) No 575/2013
Article 325 – paragraph 1 – point d

(d) until [date of application of this Regulation], the simplified internal model approach set out in Chapter 5 of this Title for those risk categories for which the institution has been granted the permission in accordance with Article 363 to use that approach in. After [date of application of this Regulatiotwo years after the adoption of the regulatory technical standards referred to in Article 325(8), Article 325ba(8) and (9), Article 325be(7), Article 325bg(9), Article 325bh(4), 325bk(4), 325bq(12), and the guidelines referred to in Article 325bn], the simplified internal model approach set out in Chapter 5 of this Title for those risk categories for which the institution has been granted the permission in accordance with Article 363 to use that approach in. After [two years after the adoption of the regulatory technical standards referred to in Article 325(8), Article 325ba(8) and (9), Article325be(7), Article 325bg(9), Article 325bh(4), 325bk(4), 325bq(12), and the guidelines referred to in Article 325bn], institutions shall no longer use the simplified internal model approach set out in Chapter 5 to determine the own funds requirements for market risks.

2018/02/05
Committee: ECON

Ashley FOX, Brian HAYES, Eva KAILI, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 1 – point 84

4. For the purposes of points (b) and (c) of paragraph 3, institutions may consider a price or a committed quote provided by a third party as a verifiable price, provided that the third party agrees to provide evidence of the transaction or a committed quote to competent authorities upon request. As evidence, the third party shall provide details of the transaction amount (needed to test that the transaction was not a negligible amount) and the transaction price (to assess the ‘realness’ of the transactions).

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 95 – point a

Regulation (EU) No 575/2013
Article 395 – paragraph 1 – subparagraph 4 a (new)

By way of derogation from the first subparagraph, an institution shall not incur aggregate exposure to non- investment grade sovereign bonds issued by any single Member State the value of which, after taking into account the effect of the credit risk mitigation in accordance with Articles 399 to 403, exceeds [50 %] of its Tier 1 capital, unless the institution applies a marginal risk weight add-on of [1%] to the excess exposure.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 s – point b

(b) assets that have a residual maturity of less than six months resulting from secured lending transactions and capital market-driven transactions as defined in Article 192(2) and (3) with financial customers, where those assets are collateralised by assets that qualify as Level 1 assets under Title II of Delegated Regulation (EU) 2015/61, excluding extremely high quality covered bonds referred to in point (f) of Article 10(1) of that Delegated Regulation , and where the institution would be legally entitled and operationally able to reuse those assets for the life of the transaction, regardless of whether the collateral has already been reused. Institutions shall take those assets into account on a net basis where Article 428e(1) of this Regulation applies;deleted

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 s – points d a (new)

(da) For all netting sets of derivative contracts subject to margin agreements under which institutions post variation margins to their counterparties, institutions shall apply a 5% required stable funding factor to the absolute market value of those netting sets of derivative contracts, gross of any collateral posted, where those netting sets have a negative market value.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 s – point d b (new)

(db) For all netting sets of derivative contracts that are not subject to a regular margin agreements under which institutions post variation margins to their counterparties but which are subject to contractual clauses which could lead to collateral to post, dependent on specific trigger events such as a downgrade for example, institutions shall apply a 5% required stable funding factor to the absolute market value of those netting sets of derivative contracts, gross of any collateral posted, where those netting sets have a negative market value. When exempt from such clauses, the netting sets that are not subject to variation margins agreement shall receive a 0% required stable funding factor.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 x – paragraph 3 – point a

(a) for all netting sets with negative market value, ~~gross~~net of collateral posted, and which are subject to a margin agreement under which the institution posts variation margin to its counterparty, the sum of all the risk category Addon(a) calculated in accordance with Article 278(1);

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 x – paragraph 3 – point b

(b) for all netting sets with positive market value, ~~gross~~net of collateral received, and which are subject to a margin agreement under which the institution receives variation margin from its counterparty, the sum of all the risk category Addon(a) calculated in accordance with Article 278(1).

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 115

Regulation (EU) No 575/2013
Article 429 – paragraphs 4 a, 4 b, 4 c, 4 d (new)

4a. By way of derogation from point (a) of Article 429(4), competent authorities may require institutions to exclude from the leverage ratio exposure measure all current and future, or all future, exposures to central banks. 4b. For the purpose of paragraph1a, exposures to central banks means exposures of an institution that are denominated in the domestic or regional currency of that central bank and that fall under one of the categories in points (i), (ii) or (iii): (i) coins or banknotes; (ii) reserves held by the institution in the central bank; and (iii) assets representing debt claims on the central bank with an initial maturity not exceeding 3 months. 4c. Where an institution is required to exclude exposures in accordance with paragraph 1a it shall do so up to an amount that does not exceed the total amount of deposits taken by the institution, where both the following conditions are met: (a) the deposits and the exposures are denominated in the same currency; and (b) the contractual maturity of the exposures does not exceed the contractual maturity of the deposits. 4d. When exposures are excluded in accordance with this Article, the requirement set out in Article92 (1)(d) shall be adjusted commensurately to offset the impact of exempting central bank reserves.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 115

Regulation (EU) No 575/2013
Article 429 – paragraph 5 – point a

(a) a derivative instrument that is considered an off-balance sheet item in accordance with point (d) of paragraph 4 but is treated as a derivative in accordance with the applicable accounting framework, shall be subject to the treatment set out in ~~point (b) of paragraph 4~~Article 429f;

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 116

Regulation (EU) No 575/2013
Article 439 – point d

(d) the amount of segregated and unsegregated collateral received and posted per type of collateral, further broken down between collateral used for derivatives and securities financing transactions, and the amount of collateral the institution would have to provide if its credit rating was downgraded; In Member States for which the relevant central bank provides liquidity assistance in the form of collateral swap transactions, the competent authorities should determine whether the application of point (d) could reveal the provision of emergency liquidity assistance. The requirements of point (d) shall not apply where, based on their activities, competent authorities consider it could reveal such assistance.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 116

~~The i~~1. Institutions using the standardised approach for the calculati~~ng their~~on of own funds requirements ~~in accordance wi~~for market risk shall disclose: (a) the objectives of the institution in undertaking trading activities, as well as the p~~oints (b) and (c) of Article 92(3) shall disclose those requirements separately for each risk referred to in those provisions. In addi~~rocesses implemented to identify, measure, monitor and control market risks; (b) the policies referred to in Article 104(1) for determining which position is to be included in the trading book in accordance with Article104; (c) a general description of the structure of the trading desks covered by the internal models referred to in the first subparagraph, including for each desk a broad description, of the ~~own funds requirement for specific interest rate risk of securitisation positions shall be disclosed separately. (http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=FR)~~desk's business strategy, the instruments permitted therein and the main risk types in relation to that desk; (d) a general overview of the trading book positions not covered by the internal models referred to in the first subparagraph; (e) the structure and organisation of the market risk management function and governance; Or. en

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 116

Regulation (EU) No 575/2013
Article 447 – point f

(f) the average or averages, as applicable, ~~for each quarter of~~over the pre~~levant disclosure period~~ceding twelve month of their liquidity coverage ratio as calculated in accordance with Delegated Regulation (EU) 2015/61~~, based on monthly figures~~;

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 127

Regulation (EU) No 575/2013
Article 501 b – paragraph 1

1. Until [date of application + 3 years], institutions that use the approaches set out in Chapters 1a and 1b, Title IV, Part Three to calculate the own funds requirement for market risks shall multiply their own funds requirements for market risks calculated under these approaches by ~~a factor of 65%.~~ the following factors: (a) 65% in the first year after [date of application]; (b) 75% in the second year after [date of application] and (c) 85% in the third year after [date of application]. The requirements of the first sub- paragraph shall not apply where an institution had determined it would be appropriate for the remainder of the three year period to calculate own funds requirements for market risk without applying the factors set out in points (a) to (c). Institutions shall notify the competent authorities in such cases. 1a. Where an institution calculates its own funds requirements in accordance with the first sub-paragraph of paragraph 1, it shall hold own funds for market risk that meet or exceed the higher of the amounts specified in points (a) and (b): (a) the own funds requirements calculated in accordance with paragraph 1; (b) the own funds requirements for market risk that the institution would be required to hold under Part Three of Regulation (EU) No 575/2013 as that Regulation stood prior to [date of entry into force]. 1b. EBA shall develop draft regulatory standards to specify conditions for the modellability of risk factors under Articles 325ba and 325bh and for the treatment of Profit &Loss attribution under Articles 325bf and 325bi. In doing so it shall take into account international developments. EBA shall submit those draft regulatory technical standards to the Commission [within 6 months of entry into force] of this Regulation.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 127

Regulation (EU) No 575/2013
Article 501b – paragraph 2

2. EBA shall monitor the appropriateness of the level of own funds requirement for market risks calculated in accordance with the approaches set out in Chapters 1a and 1b, Title IV, Part Three by institutions in the Union and report to the Commission on the opportunity to change the calibration of these approaches by [date of application + 2 years]. This report shall at least assess: (a) instruments assigned to the trading book of institutions in the Union, whether the level of own funds requirements for market risks calculated by institutions in accordance with the approach set out in Chapters 1a, Title IV, Part Three is excessive as compared to the own funds requirements for market risks calculated by institutions in accordance with the approach set out in point (a) of paragraph 1 of Article 325. (b) instruments assigned to the trading book of institutions in the Union, whether the level of own funds requirements for market risks calculated by institutions in accordance with the approach set out in Chapters 3, Title IV, Part Three is excessive as compared to the own funds requirements for market risks calculated by institutions in accordance with the approach set out Chapters 7, Title IV, Part 3. (c) instruments assigned to the trading book of institutions in the Union, whether the level of own funds requirement for market risks calculated by institutions in accordance with the approach set out in Chapters 2, Title IV, Part Three is excessive as compared to the level of own funds requirement for market risks calculated by institutions in accordance with the approach set out in Chapters 3, Title IV, Part Three.deleted for the most common financial for the most common financial for the most common financial

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 127

Regulation (EU) No 575/2013
Article 501 b – paragraph 3

3. Within the three years after the date of application of the approaches set out in Chapters 1a and 1b, Title IV, Part Three , the Commission shall be empowered to adopt a delegated act in accordance with Article 462 of this Regulation to prolong the application of the treatment referred to in paragraph 1 or amend the factor referred to in that paragraph, if considered appropriate and taking into account the report referred to in paragraph 2, international regulatory developments and the specificities of financial and capital markets in the Union.deleted

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 127

Regulation (EU) No 575/2013
Article 501 b – paragraph 4

~~4. In the absence of adoption of the~~ delegated ~~act referred to in the previous subparagraph within the specified timeframe, the treatment set out in paragraph 1 shall cease to apply.~~

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 131 a (new)

Regulation (EU) No 575/2013
Article 519 a a (new)

(131 a)The following Article 519a a is inserted: "Article 519a a Non-systemic credit institutions: capital requirements 1. [2 years after entry into force of the regulation], the Commission shall report on whether and how credit institutions which are not G-SIIs or O- SIIs identified in accordance with Article 131 (1), (2) or (3) of Directive 2013/36/EU should comply with the obligations laid down in Parts Two to Five and Eight of this Regulation and shall, after consulting the EBA, submit that report to the European Parliament and to the Council, together with a legislative proposal, if appropriate. 2. The report referred to in paragraph 1 shall take into account the proportionality of the compliance by the credit institutions referred to in paragraph 1 with the obligations referred to in that paragraph in light of: (a) Clause 12 of the Basel Committee on Banking Supervision Charter under which the Committee only requires full implementation of the Committee's standards be internationally active banks; and (b) the capital requirements imposed on non-systemic banks in other jurisdictions."

2018/02/05
Committee: ECON