6 Amendments of Burkhard BALZ related to 2016/0363(COD)
Amendment 39 #
Proposal for a directive
Recital 3
Recital 3
(3) Member States should ensure that credit institutions and investment firms should have sufficient loss-absorbing and recapitalisation capacity to ensure smooth and fast absorption of losses and recapitalisation in resolution with a minimumhile avoiding an impact on financial stability and taxpayers. This should be achieved through constant compliance by credit institutions and investment firms with a TLAC minimum requirement as provided that will be implemented in Union law by amending Regulation (EU) No 575/2013 and a requirement for own funds and permisseligible liabilities as provided in Directive 2014/59/EU.
Amendment 47 #
Proposal for a directive
Recital 9
Recital 9
(9) In order to reduce to a minimum credit institutions and investment firms'the costs of compliance with the subordination requirement and any negative impact on their funding costs, this Directive should allow Member States to keep, where applicable, the existing class of ordinary unsecured senior debt, which has the highest insolvency ranking among debt instruments and is less costly for credit institutions and investment firms to issue than any other subordinated liabilities. Itn order to enhance the resolvability of institutions, this Directive should, nevertheless, require Member States to create a new asset class of 'non-preferred' senior debt that should only be bailed-in during resolution after other capital instruments, but before other senior liabilities. Credit institutions and investment firms should remain free to issue debt in both classes whilerank in insolvency before own funds, instruments and subordinated liabilities, but after other senior liabilities. Without prejudice to other options provided for in the TLAC standard to comply with the subordination requirement, institutions should remain free to issue debt in both senior and 'non-preferred' senior classes while, of those two classes, only the 'non- preferred' senior class should be eligible to meet the subordination requirement of Regulation (EU) No 575/2013 and of Directive 2014/59/EU. This should allow credit institutions and investment firms to use for their funding or any other operational reasons the less costly ordinary senior debt while issuing debt in the new 'non-preferred' senior class forto obtain funding while complianceying with the subordination requirement.
Amendment 52 #
Proposal for a directive
Recital 10
Recital 10
(10) To ensure that the new 'non- preferred' senior class of debt instruments meet the eligibility criteria of Regulation (EU) No 575/2013 and of Directive 2014/59/EU, Member States should ensureas described in the TLAC standard and as set out in Directive 2014/59/EU, thereby enhancing legal certainty, Member States should ensure that those debt instruments are not derivatives, have no embedded derivatives and that their initial contractual maturity spans one year, that they have no derivative features, and that the relevant contractual documentation related to their issuance explicitly refers to their ranking under normal insolvency proceedings. In particular, debt instruments with a variable interest, derived from a broadly used reference rate such as Euribor or Libor, should not be considered as debt instruments with embedded derivatives solely because of this feature.
Amendment 67 #
Proposal for a directive
Article 1 – paragraph 1 a (new)
Article 1 – paragraph 1 a (new)
Directive 2014/59/EU
Article 108 – paragraph 1 – point b – introductory part
Article 108 – paragraph 1 – point b – introductory part
1a. in Article 108, point (b) is replaced by the following: ‘(b) the following have the same priority ranking which is higher than the ranking provided for under point (a) and the ranking of all other liabilities, without prejudice to costs, expenses and other creditors of the insolvency estate:
Amendment 87 #
Proposal for a directive
Article 1 – paragraph 2
Article 1 – paragraph 2
Directive 2014/59/EU
Article 108 – paragraph 4 a (new)
Article 108 – paragraph 4 a (new)
4a. Where, after 31 December 2016 and before the [date of entry into force of this Directive], a Member State has adopted a national law governing the ranking in normal insolvency proceedings of unsecured claims resulting from debt instruments issued after the date of application of such national law, paragraph 4 shall not apply to claims resulting from debt instruments issued after the entry into force of that national law provided that it complies with the following: (a) that national law provides that, for entities referred to in points (a), (b), (c) and (d) of Article (1) 1, ordinary unsecured claims shall, in normal insolvency proceedings, have a higher priority ranking than that of unsecured claims resulting from debt instruments which meet the following conditions: (i) they are not derivatives, have no embedded derivatives and the initial contractual maturity spans one year; and (ii) the relevant contractual documentation and, where applicable, the prospectus, related to the issuance explicitly refers to the lower ranking under the applicable law; (b) that national law provides that unsecured claims resulting from debt instruments that meet the conditions laid down in point (a) of this paragraph shall, in normal insolvency proceedings, have a higher priority ranking than the priority ranking of claims resulting from instruments referred to in points (a) to (d) of Article 48 (1). On the date of entry into force of the measures under national law transposing this Directive the unsecured claims resulting from debt instruments referred to in point (b) shall have the same priority ranking as the one referred to in points (a), (b) and (c) of paragraph 2 and in paragraph 3.
Amendment 90 #
Proposal for a directive
Article 1 – paragraph 2
Article 1 – paragraph 2
4b. EBA shall develop draft regulatory technical standards to specify the condition referred to in point (b) of paragraph 2. EBA shall submit those draft regulatory technical standards to the Commission by [xxx]. The Commission is empowered to supplement this Directive by adopting the regulatory technical standards referred to in the first subparagraph in accordance with the Articles 10 to 14 of Regulation (EU) No 1093/2010.