23 Amendments of Nils TORVALDS related to 2014/0020(COD)
Amendment 102 #
Proposal for a regulation
Recital 3 a (new)
Recital 3 a (new)
(3 a) Since the proposal of the High-level Expert Group on reforming the structure of the Union’s banking sector, the Union has adopted a large amount of legislation (EMIR, MIFID2, CRR, CRD4, DGS, BRRD among others) reducing systemic risk, increasing capital requirements, safeguarding depositors and improving the tools for dealing with bank crises across the Union. As a result of these new rules and of new structures for supervision, the legal framework has been reinforced and the single rulebook in banking has created a new basis for financial markets in the Union, facilitating a single financial market and a working Capital Markets Union.
Amendment 120 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12 a) Through a risk-based approach, this Regulation should aim at providing financial stability, reducing systemic risk and maintaining a competitive European banking sector able to finance the economy.
Amendment 159 #
Proposal for a regulation
Recital 23
Recital 23
(23) If, when assessing the trading activities, the competent authority concludes that they exceed certain metrics in terms of relative size, leverage, complexity, profitability, associated market risk, as well as interconnectedness, and further deems that there is a threat to the financial stability of the core credit institution or to the whole or part of the Union financial system, taking into account the objectives of this Regulation, it should require their separation from the core credit institution unless the core credit institution can demonstrate to the satisfaction of the competent authority that those trading activities do not pose a threat to the financial stability of the core credit institution or to the Union financial system as a whole, taking into account the objectives set out in this Regulation.
Amendment 185 #
Proposal for a regulation
Recital 32 a (new)
Recital 32 a (new)
(32 a) In accordance with Article 1(5) and Article 22(2) of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), EBA shall pay particular attention to any systemic risk posed by financial institutions, the failure of which may impair the operation of the financial system or the real economy. EBA shall therefore develop guidance on the quantitative and the qualitative parameters.
Amendment 191 #
Proposal for a regulation
Recital 37 a (new)
Recital 37 a (new)
(37 a) For the purpose of carrying out its exclusive tasks, including the duties specified in this Regulation, the ECB has the sanctioning powers specified in Article 18 of Regulation (EU) No 1024/2013. For the purpose of carrying out its exclusive tasks, including the duties specified in this Regulation, the ECB has the sanctioning powers specified in Article 18 of Regulation (EU) No 1024/2013.
Amendment 200 #
Proposal for a regulation
Recital 44 a (new)
Recital 44 a (new)
(44 a) The conferral of supervisory tasks implies a significant responsibility for the ECB to safeguard financial stability in the Union, and to use its supervisory powers in the most effective and proportionate way. Any shift of supervisory powers from the Member State to the Union level should be balanced by appropriate transparency and accountability requirements. The ECB should therefore be accountable for the exercise of those tasks towards the European Parliament and the Council as democratically legitimised institutions representing the citizens of the Union and the Member States. That should include regular reporting, and responding to questions by the European Parliament in accordance with its rules of procedure, and by the Eurogroup in accordance with its procedures. Any reporting obligations should be subject to the relevant professional secrecy requirements.
Amendment 203 #
Proposal for a regulation
Recital 47 a (new)
Recital 47 a (new)
(47 a) As stated in the Liikanen report, "attention should be paid to the governance and control mechanisms of all banks". More attention should indeed be given by the competent authorities to the ability of management and boards to run and monitor large and complex banks as well as smaller ones as the crisis has shown that small banks represent a risk too. Complementary supervisory tools should be developed such as fit-and- proper tests applied when evaluating the suitability of management and board candidates.
Amendment 229 #
Proposal for a regulation
Article 2 – paragraph 1 – introductory part
Article 2 – paragraph 1 – introductory part
This Regulation lays down rules onfor a framework for the competent authorities' supervisory processes to properly assess the need for:
Amendment 279 #
Proposal for a regulation
Article 5 – paragraph 1 – point 4
Article 5 – paragraph 1 – point 4
4. ‘proprietary trading’ means using own capital or borrowed money to take positions in reaction to and with the motivation of exploiting actual or expected movements in market valuations, in any type of transaction to purchase, sell or otherwise acquire or dispose of any financial instrument or commodities for the sole purpose of making a profit for own account, and without any connection to actual or anticipated client activity or for the purpose of hedging the entity’s risk as result of actual or anticipated client activity, through the use of desks, units, divisions or individual tra. This definition includers specifically dedicated to such position taking and profit making, including through dedicated web-based proprietary trading platformsany such transaction undertaken with the aim of making profit, irrespective of whether such profit would be realised in the short term or in the longer term, or is in fact realised;
Amendment 287 #
Proposal for a regulation
Article 5 – paragraph 1 – point 12
Article 5 – paragraph 1 – point 12
12. ‘market making’ means a financial institution's commitment to provide market liquidity on a regular and on-going basis, by posting two-way quotes with regard to a certain financial instrument, or as part of its usual business, by fulfilling orders initiated by clients or in response to clients’ requests to trade, butor in both cases without bereasonable anticipation of potential client activity, and by hedging exposed to material market riitions arising from the fulfilment of these tasks;
Amendment 297 #
Proposal for a regulation
Article 5 – paragraph 1 – point 22 a (new)
Article 5 – paragraph 1 – point 22 a (new)
22 a. "concentration" means a concentration as determined in accordance with Council Regulation (EC) No 139/2004.
Amendment 436 #
Proposal for a regulation
Article 9 – paragraph 2 – point a
Article 9 – paragraph 2 – point a
(a) the relative sizerisk of trading assets, as measured by the risk weighted trading assets divided by totalhe total risk weighted assets;
Amendment 439 #
Proposal for a regulation
Article 9 – paragraph 2 – point a a (new)
Article 9 – paragraph 2 – point a a (new)
(a a) trading related risk exposures divided by total eligible liabilities for bail- in requirements as defined in Article 45 of Directive 59/2014/EU
Amendment 444 #
Proposal for a regulation
Article 9 – paragraph 2 – point c
Article 9 – paragraph 2 – point c
(c) the relative importance of counterparty credit risk to financial entities, as measured by the fair value of derivatives with financial entities divided by total trading assets;
Amendment 445 #
Proposal for a regulation
Article 9 – paragraph 2 – point c
Article 9 – paragraph 2 – point c
(c) the relative importance of counterparty credit risk to financial entities, as measured by the fair value of derivatives with financial entities as counterparty divided by total trading assets;
Amendment 448 #
Proposal for a regulation
Article 9 – paragraph 2 – point d
Article 9 – paragraph 2 – point d
Amendment 452 #
Proposal for a regulation
Article 9 – paragraph 2 – point e
Article 9 – paragraph 2 – point e
Amendment 455 #
Proposal for a regulation
Article 9 – paragraph 2 – point f
Article 9 – paragraph 2 – point f
(f) the relative importance of market risk, as measured by computing the difference between trading assets and liabilities in absolute value and dividing it by the simple average between trading assets and trading liabilitiesthe risk exposure amount for market risk divided by the total risk exposure amount;
Amendment 459 #
Proposal for a regulation
Article 9 – paragraph 2 – point h
Article 9 – paragraph 2 – point h
Amendment 517 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 2
Article 10 – paragraph 3 – subparagraph 2
Unless the core credit institution demonstrates, within the time limit referred to in the first subparagraph, to the satisfaction of the competent authority, that the reasons leading to the conclusions are not justified, the competent authority shall adopt a decision addressing the core credit institution and requiring it not to carry out the trading activities specified into reduce the risk that potential losses stemming from trading related activities are transferred to the core credit institution, by taking measures in accordance with Article 17 of the Directive 2014/59/EU to restore the resolvability of the credit institution. The core credit institution shall in the first instance propose measures to remove impediments to resolvability and only in a second instance, should the measures proposed by the core credit institution be regarded as inefficient, shall those conclusionssolidating supervisor take alternative measures in accordance with Article 17(5) of Directive 2014/59/EU. The competent authority shall state the reasons for its decision and publicly disclose it.
Amendment 676 #
Proposal for a regulation
Article 19 – paragraph 2 – subparagraph 1a (new)
Article 19 – paragraph 2 – subparagraph 1a (new)
A finding by the relevant resolution authority that there are no substantive impediments to resolvability shall not in itself be deemed sufficient indication that the conclusions referred to in Article 10(3) are not justified, as primary objectives of this Regulation focus on financial stability at large and not only on resolvability. Likewise, the competent authority shall not take a decision referred to in Article 10(3) for resolvability purposes, since the powers to change banking groups' structure, including by requiring a "holding company" structure are entrusted to the resolution authority in accordance with Article 17(5)(g) of Directive 2014/59/EU.
Amendment 680 #
Proposal for a regulation
Article 19 – paragraph 3 – subparagraph 1a (new)
Article 19 – paragraph 3 – subparagraph 1a (new)
In particular, the competent authority shall provide the resolution authority with all relevant information resulting from its risk assessment of trading activities so as to facilitate the update of resolution plans by the resolution authority.
Amendment 829 #
Proposal for a regulation
Article 34 – paragraph 1 a (new)
Article 34 – paragraph 1 a (new)
By*, the Commission, after consulting the ESRB, the EBA and the competent authorities, shall submit to the European Parliament and to the Council a report on the potential threats to financial stability, to the Single Market and to the competitiveness of the EU, covering inter alia: - the calibration of sovereign debt; - the governance and control mechanisms of the banks; - misaligned fiscal incentives, notably the preferential fiscal treatment of debt ; - the level of competition both inside the EU and at global level. If appropriate, the report should be accompanied by legislative proposals. * within 12 months of publication of this Regulation in the OJ.