Activities of Luděk NIEDERMAYER related to 2023/0115(COD)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council amending Directive 2014/49/EU as regards the scope of deposit protection, use of deposit guarantee schemes funds, cross-border cooperation, and transparency
Amendments (22)
Amendment 84 #
Proposal for a directive
Recital 1 a (new)
Recital 1 a (new)
(1a) The target levels of the resolution financing arrangements and the DGSs were determined in 2014 to withstand severe adverse shocks to the banking system given the loss absorption capacity of the system at the time. As a result of the reforms undertaken since 2014, the loss absorption capacity of European banks has significantly improved, with the increase of capital and liquidity ratios, the build-up of high MREL buffers, and the halving of the level of non-performing loans. As a result, the same target level of the various funds now enables to withstand a much more severe economic shocks.
Amendment 103 #
Proposal for a directive
Recital 18
Recital 18
(18) Pursuant to Article 10(2) of Directive 2014/49/EU, Member States are to ensure that by 3 July 2024, the available financial means of a DGS reach a target level of 0,8 % of the amount of the covered deposits of its members. TIn order to objectively assess whether DGSs fulfil that requirement, a clear reference period should be set to determine the amount of covered deposits and DGSs’ available financial means.
Amendment 108 #
Proposal for a directive
Recital 22
Recital 22
(22) It is necessary to enhance depositor protection, while avoiding the need for a fire sale of the assets of a DGS and limiting possible negative pro-cyclical effects over the banking industry caused by the collection of extraordinary contributions. DGSs should therefore be allowed to use alternative funding arrangements that enable them to obtain at any time short- term funding from sources other than contributions, including before using their available financial means and funds collected through extraordinary contributions. Because credit institutions should primarily bear the cost and responsibility for financing DGSs, alternative funding arrangements from public funds should only be used as a last resortin extraordinary cases of systemic nature.
Amendment 115 #
Proposal for a directive
Recital 24 a (new)
Recital 24 a (new)
(24a) It is essential that any involvement of the DGS in any scenario must be conducted with a stringent focus on cost- effectiveness and transparency. This approach is essential to avoid distorting the level playing field and ensuring that it does not confer unfair advantages to specific market participants. Transparency and cost-efficiency are fundamental principles that underpin the integrity and equitable functioning of the DGS.
Amendment 121 #
Proposal for a directive
Recital 28
Recital 28
(28) To avoid detrimental effects on competition and on the internal market, it is necessary to lay down that in the case of alternative measures in insolvency, relevant bodies representing a credit institution in the context of national insolvency proceedings (liquidator, receiver, administrator or other) should make arrangements for the marketing of the business of the credit institution or part of it in an open, transparent and non- discriminatory process, while aiming to maximise, as far as possible, the sale price. The credit institution or any intermediary acting on behalf of the credit institution should apply rules that are adequate for the marketing of assets, rights and liabilities that are to be transferred to potential purchasers. In any event, the use of State resources should remain subject to the relevant State aid rules under the Treaty, where applicable. State resources should only be used in extraordinary circumstances when an event occurs of a systemic nature or pertaining to very large economic turmoil, as it imposes a significant burden on public finances and disrupts the level playing field in the internal market.
Amendment 129 #
Proposal for a directive
Recital 37
Recital 37
(37) The merger of a credit institution or the conversion of subsidiary into branch or vice versa might affect the key features of depositor protection. To avoid adverse impacts on depositors that would have deposits in both merging banks and whose claim to deposit coverage would be reduced because of changes to DGS affiliation, all depositors should be informed about such changes and. Depositors should have the right to withdraw their funds without incurring a penalty up to an amount equal to the lost coverage of deposits.
Amendment 162 #
Proposal for a directive
Article 1 – paragraph 1 – point 6 – point b
Article 1 – paragraph 1 – point 6 – point b
Directive 2014/49/EU
Article 7 – paragraph 7 – subparagraph 1a (new)
Article 7 – paragraph 7 – subparagraph 1a (new)
In cases where interest rates on certain deposits significantly exceed the prevailing market interest rate, as determined and based on transparent and publicly available data, the DGS shall have the authority to adjust the reimbursed interest to reflect the prevailing market rate at the time of determination or ruling. This adjustment shall be made to prevent moral hazard. The criteria and methodology for defining 'significantly exceed' and for the adjustment, shall be established in a transparent manner, in accordance with guidelines developed by the European Banking Authority (EBA) and subject to the approval of the competent national authority.
Amendment 170 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/49/EU
Article 8b – paragraph 3
Article 8b – paragraph 3
3. Member States shall ensure that DGSs repayment of covered deposits is made either to the account holder for the benefit of each client, or to the client directly.
Amendment 182 #
Proposal for a directive
Article 1 – paragraph 1 – point 11 – point d
Article 1 – paragraph 1 – point 11 – point d
Directive 2014/49/EU
Article 10 – paragraph 7
Article 10 – paragraph 7
7. Member State shall ensure that DGSs, designated authorities, or competent authorities set the investment strategy for the available financial means of DGSs, and that that investment strategy complies with the principle of diversification and investments in low-risk assets and provides liquidity necessary for a DGS to fulfil its role.;
Amendment 183 #
Proposal for a directive
Article 1 – paragraph 1 – point 11 – point e
Article 1 – paragraph 1 – point 11 – point e
Directive 2014/49/EU
Article 10 – paragraph 7a
Article 10 – paragraph 7a
7a. Member States shall ensure that DGSs may place all or part of their available financial means with their national central bank or national treasury, provided that it is a cost effective decision for DGS and those available financial means are kept on a segregated account and that they are readily available for use by the DGS in accordance with Articles 11 and 12.’;
Amendment 187 #
Proposal for a directive
Article 1 – paragraph 1 – point 11 – point g
Article 1 – paragraph 1 – point 11 – point g
Directive 2014/49/EU
Article 10 – paragraph 11
Article 10 – paragraph 11
11. Member States shall ensure that in the context of the measures referred to in Article 11(1), (2), (3) and (5), DGSs may use the funds originating from the alternative funding arrangements referred to in Article 10(9) which are not financed through public funds, before using the available financial means and before collecting the extraordinary contributions referred to in Article 10(8). Member States shall ensure that DGSs use alternative funding arrangements financed through public funds only as a last resort and are cost effective.
Amendment 191 #
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2014/49/EU
Article 11 – paragraph 1
Article 11 – paragraph 1
1. Member States shall ensure that DGSs use the available financial means referred to in Article 10 primarily to repaysecure repayments to depositors in accordance with Article 8 without prejudice to the use of additional financial means collected by DGSs for the fulfilment of mandates other than depositor protection under this Directive.
Amendment 207 #
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2014/49/EU
Article 11 – paragraph 3 – point b
Article 11 – paragraph 3 – point b
(b) the DGS has confirmed that the cost of the measure does not exceed the cost of repaying depositors as calculated in accordance with Article 11e or any other measure that would be considered equivalent to repaying depositors;
Amendment 223 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – point a
Article 11a – paragraph 1 – point a
(a) the request of a credit institution for the financing of such preventive measures is accompanied by a note committing to a restructuring plan to ensure or restore long-term viability and compliance with the supervisory requirements applicable to the institution concerned in accordance with Directive 2013/36/EU and Regulation (EU) No 575/2013, containing measures as referred to in Article 11b ;
Amendment 230 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – point f
Article 11a – paragraph 1 – point f
(f) the credit institution complies with its obligations under this Directive, has not already been subject to a preventive measure in the last 5 years and has fully reimbursed any other previous preventive measure. extraordinary financial support received in the last 10 years.
Amendment 235 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – point f a (new)
Article 11a – paragraph 1 – point f a (new)
(fa) the measures are confined to solvent institutions or entities, as confirmed by the competent authority;
Amendment 236 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – point f b (new)
Article 11a – paragraph 1 – point f b (new)
(fb) the measures are not used to offset losses that the institution or entity has incurred or is likely to incur in the near future.
Amendment 241 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – subparagraph 1a (new)
Article 11a – paragraph 1 – subparagraph 1a (new)
1a. For the purposes of the first subparagraph, point (fa), an institution or entity shall be deemed to be solvent where the competent authority has concluded that no breach has occurred, or is likely 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 Union or national law.
Amendment 253 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11b – paragraph 1
Article 11b – paragraph 1
1. Member States shall ensure that credit institutions which request a DGS to finance preventive measures in accordance with Article 11(3) present to the competent authority for consultation a note with measures that those credit institutions commit to undertake to ensure or restoreapproval a restructuring plan to ensure or restore long-term viability and compliance with the supervisory requirements applicable to the credit institution concerned and that are laid down inin accordance with Directive 2013/36/EU and Regulation (EU) No 575/2013.
Amendment 264 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11b – paragraph 5a (new)
Article 11b – paragraph 5a (new)
5a. It shall be ensured that the deposit guarantee scheme is properly remunerated for the preventive measure and that the beneficiary credit institution, its shareholders, its creditors or the business group to which it belongs, contribute significantly to the restructuring or liquidation costs from their own resources. Preventive measures to support liquidity provision shall be temporary, shall not be used to absorb losses and shall not become capital support. Proper remuneration shall be paid to the deposit guarantee scheme for the preventive measures granted to support liquidity provision.
Amendment 269 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11b – paragraph 6
Article 11b – paragraph 6
Amendment 274 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11b – paragraph 6a (new)
Article 11b – paragraph 6a (new)
6a. The competent authority shall have two weeks to approve the restructuring plan. When the competent authority deems the restructuring plan unsatisfactory, the envisaged preventive measure cannot be undertaken.