Activities of Luděk NIEDERMAYER related to 2023/0111(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 806/2014 as regards early intervention measures, conditions for resolution and funding of resolution action
Amendments (19)
Amendment 61 #
Proposal for a regulation
Recital 2
Recital 2
(2) Several years into its implementation, the Union resolution framework as currently applicable does not deliver as intended with respect to some of those objectives. In particular, while institutions and entities have made significant progress towards resolvability and have dedicated significant resources to that end, in particular through the build-up of the loss absorption and recapitalisation capacity and the filling-up of resolution financing arrangements, the Union resolution framework is seldom resorted to. Failures of certain smaller and medium- sized institutions and entities are instead mostly addressed through unharmonised national measures. Taxpayer money is used rather than resolution financing arrangements. That situation appears to arise from inadequate incentives. Those inadequate incentives result from the interplay of the Union resolution framework with national rules, whereby the broad discretion in the public interest assessment is not always exercised in a way that reflects how the Union resolution framework was intended to apply. At the same time, the Union resolution framework saw little use due to the risks for depositors of deposit-funded institutions to bear losses to ensure that those institutions can access external funding in resolution, in particular in the absence of other bail-inable liabilities. Finally, the fact that there are less stringent rules on access to funding outside resolution than in resolution has discouraged the application of the Union resolution framework in favour of other solutions, which often entail the use of taxpayers’ money instead of the own resources of the institution or entity or industry-funded safety nets. That situation in turn generates risks of fragmentation, risks of suboptimal outcomes in managing institutions and entities’ failures, in particular in the case of smaller and medium-sized institutions and entities, and opportunity costs from unused financial resources. It is therefore necessary to ensure a more effective and coherent application of the Union resolution framework and to ensure that it can be applied whenever that is in the public interest, including for smaller and medium- sized institutions primarily funded through deposits and without sufficient other bail- inable liabilities other than deposits .
Amendment 169 #
Proposal for a regulation
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Regulation (EU) No 806/2014
Article 13 – paragraph 1 – point a – point ii
Article 13 – paragraph 1 – point a – point ii
(ii) the ECB deems that remedial actions other than early intervention measures are inot sufficient to address the problems due inter alia to a rapid and significant deterioration of the financial condition of the entity;
Amendment 172 #
Proposal for a regulation
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
The ECB may determine, where there is a rapid deterioration of conditions, adverse circumstances or new information about an entity is obtained, that the condition referred to in the first subparagraph, point (a)(ii), is met without having previously taken other remedial actions, including the exercise of the powers referred to in Article 104 of Directive 2013/36/EU or in Article 16(2) of Regulation (EU) No 1024/2013.
Amendment 173 #
Proposal for a regulation
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Regulation (EU) No 806/2014
Article 13 – paragraph 2 – point c
Article 13 – paragraph 2 – point c
(c) the requirement for the management body of the entity to draw up an action plan, in accordance with the recovery plan where applicable, for negotiation on restructuring of debt with some or all of its creditors;
Amendment 176 #
Proposal for a regulation
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Regulation (EU) No 806/2014
Article 13 – paragraph 3
Article 13 – paragraph 3
3. The ECB shall choose the appropriate and timely early intervention measures based on what is proportionate to the objectives pursued, having regard to the seriousness of the infringement or likely infringement and the speed of the deterioration in the financial situation of the entity, among other relevant information.
Amendment 178 #
Proposal for a regulation
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Regulation (EU) No 806/2014
Article 13 – paragraph 5 – subparagraph 2
Article 13 – paragraph 5 – subparagraph 2
Where a group includes entities established in participating Member States and subsidiaries established, or significant branches located, in non-participating Member States, the ECB shall communicate any decisions or measures referred to in Articles 13 to 13c relevant to the group to the competent authorities or the resolution authorities of the non- participating Member States, as appropriate in a timely manner.;
Amendment 179 #
Proposal for a regulation
Article 1 – paragraph 1 – point 16
Article 1 – paragraph 1 – point 16
The ECB shall make public the appointment of any temporary administrator, except where the temporary administrator does not have the power to represent or make decisions on behalf of the entity.
Amendment 180 #
Proposal for a regulation
Article 1 – paragraph 1 – point 16
Article 1 – paragraph 1 – point 16
Regulation (EU) No 806/2014
Article 13b – paragraph 2
Article 13b – paragraph 2
2. The ECB shall specify the powers of the temporary administrator at the time of his or her appointment, based on what is proportionate in the circumstances. Such powers may include some or all of the powers of the management body of the entity, under the statutes of the entity and under national law, including the power to exercise some or all of the administrative functions of the management body of the entity. The powers of the temporary administrator in relation to the entity shall comply with the applicable company law. Such powers may be adjusted upon the change in circumstances by the ECB.
Amendment 181 #
Proposal for a regulation
Article 1 – paragraph 1 – point 16
Article 1 – paragraph 1 – point 16
Regulation (EU) No 806/2014
Article 13b – paragraph 6
Article 13b – paragraph 6
6. At the request of the ECB, the temporary administrator shall draw up reports on the financial position of the entity and on the acts performed in the course of his or her appointment, at intervals set by the ECB, at least once after the first six months , and in any case at the end of his or her mandate.
Amendment 182 #
Proposal for a regulation
Article 1 – paragraph 1 – point 16
Article 1 – paragraph 1 – point 16
Regulation (EU) No 806/2014
Article 13b – paragraph 7
Article 13b – paragraph 7
7. The temporary administrator shall be appointed for maximum 1 year. That period may be exceptionally renewed once, if the conditions for appointing the temporary administrator continue to be met. The ECB shall determine those conditions and shall justify any renewal of the appointment of the temporary administrator to the shareholders.
Amendment 185 #
Proposal for a regulation
Article 1 – paragraph 1 – point 16
Article 1 – paragraph 1 – point 16
Regulation (EU) No 806/2014
Article 13c – paragraph 2 – subparagraph 2
Article 13c – paragraph 2 – subparagraph 2
After having received the notification referred to in the first subparagraph, the Board shall assess, in close cooperation with the ECB or the relevant national competent authority, what constitutes a reasonable timeframe for the purposes of the assessment of the condition referred to in Article 18(1), point (b), taking into account the speed of the deterioration of the conditions of the entity, the potential impact on the financial system and protection of depositors and client funds, the need to implement effectively the resolution strategy and any other relevant considerations. The Board shall communicate that assessment to the ECB or to the relevant national competent authority as early as possible.
Amendment 197 #
Proposal for a regulation
Article 1 – paragraph 1 – point 17
Article 1 – paragraph 1 – point 17
Regulation (EU) No 806/2014
Article 14 – paragraph 2 – point d
Article 14 – paragraph 2 – point d
(d) to protect depositors while minimising losses for deposit guarantee schemes, by allowing cost-effective involvement of the DGS and to protect investors covered by Directive 97/9/EC;;
Amendment 210 #
Proposal for a regulation
Article 1 – paragraph 1 – point 19 – point a
Article 1 – paragraph 1 – point 19 – point a
Regulation (EU) No 806/2014
Article 18 – paragraph 2
Article 18 – paragraph 2
2. Without prejudice to cases where the ECB has decided to exercise directly supervisory tasks relating to credit institutions pursuant to Article 6(5), point (b) of Regulation (EU) No 1024/2013, in the event of receipt of a communication pursuant to paragraph 1 in relation to an entity or group as referred to in Article 7(3), the Board shall communicate its assessment as referred to paragraph 1, fourth subparagraph, to the ECB or the relevant national competent authority without any delay and in a timely manner.
Amendment 225 #
Proposal for a regulation
Article 1 – paragraph 1 – point 19 – point c
Article 1 – paragraph 1 – point 19 – point c
Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 2
Article 18 – paragraph 5 – subparagraph 2
When carrying out the assessment referred to in the first subparagraph, the Board, based on the information available to it at the time of that assessment, shall considerevaluate and compare all extraordinary public financial support that can reasonably be expected to be granted to the entity, both in the event of resolution and in the event of winding up in accordance with the applicable national law.’;
Amendment 234 #
Proposal for a regulation
Article 1 – paragraph 1 – point 20
Article 1 – paragraph 1 – point 20
Regulation (EU) No 806/2014
Article 18a – paragraph 1 – point a – introductory part
Article 18a – paragraph 1 – point a – introductory part
(a) where, to remedy a serious disturbance in the economy of a Member State of an exceptional or systemic nature or to preserve financial stability, the extraordinary public financial support takes any of the following forms:
Amendment 237 #
Proposal for a regulation
Article 1 – paragraph 1 – point 20
Article 1 – paragraph 1 – point 20
Regulation (EU) No 806/2014
Article 18a – paragraph 1 – point b
Article 18a – paragraph 1 – point b
(b) where the extraordinary public financial support takes the form of an cost - effective intervention by a deposit guarantee scheme to preserve the financial soundness and long-term viability of the credit institution in compliance with the conditions set out in Articles 11a and 11b of Directive 2014/49/EU, provided that none or of the circumstances referred to in Article 18(4) are present;
Amendment 238 #
Proposal for a regulation
Article 1 – paragraph 1 – point 20
Article 1 – paragraph 1 – point 20
Regulation (EU) No 806/2014
Article 18a – paragraph 1 – point c
Article 18a – paragraph 1 – point c
(c) where the extraordinary public financial support takes the form of an cost - effective intervention by a deposit guarantee scheme in the context of the winding up of an institution pursuant to Article 32b of Directive 2014/59/EU and in accordance with the conditions set out in Article 11(5) of Directive 2014/49/EU;
Amendment 245 #
Proposal for a regulation
Article 1 – paragraph 1 – point 20
Article 1 – paragraph 1 – point 20
Regulation (EU) No 806/2014
Article 18a – paragraph 2 – subparagraph 2
Article 18a – paragraph 2 – subparagraph 2
For the purposes of the first subparagraph, point (a), an entity shall be deemed to be solvent where the ECB or the relevant national competent authority have concluded that under current economic conditions, no breach has occurred, or is likelyforeseeable to occur in the 12 following months, of any of the requirements referred to in Article 92(1) of Regulation (EU) No 575/2013, Article 104a of Directive 2013/36/EU, Article 11(1) of Regulation (EU) 2019/2033, Article 40 of Directive (EU) 2019/2034 or the relevant applicable requirements under national or Union law.
Amendment 262 #
Proposal for a regulation
Article 1 – paragraph 1 – point 22 – point a
Article 1 – paragraph 1 – point 22 – point a
Regulation (EU) No 806/2014
Article 20 – paragraph 1
Article 20 – paragraph 1
1. Before determining whether the conditions for resolution, or the conditions for write down or conversion of capital instruments and eligible liabilities as referred to in Article 21(1) are met, the Board shall ensure that a fair, prudent and realistic valuation of the assets and liabilities of an entity as referred to in Article 2 is carried out by a person with appropriate expertise that is independent from any public authority, including the Board and the national resolution authority, and from the entity concerned.;’