BETA

Activities of Marco VALLI 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 (41)

Proposal for a regulation
Recital 9

(9) The European Banking Authority (EBA) concluded in its report to the Commission19 that a Tier 1 capital leverage ratio calibrated at 3% for any type of credit institution would constitute a credible backstop function. A 3% leverage ratio requirement was also agreed upon at international level by the Basel Committee. ~~The leverage ratio requirement should therefore be calibrated at 3%.~~However, evidence shows that a leverage ratio of 3% would not be enough to prevent financial crises. The leverage ratio requirement should therefore be calibrated at 3% only for those institutions that do not pose a significant threat to financial stability because of their lower exposure in the derivative market. Institutions with larger derivatives exposure should be subject to the higher requirements of 6 % and 12%, depending on the size of their exposure; a stricter leverage ratio is essential to prevent the build-up of an excessive leverage by too-big-to-fail institutions and reduce the probability of new crises; __________________ 19 Report on the leverage ratio requirement of 3 August 2016 https://www.eba.europa.eu/documents/101 80/1360107/EBA-Op-2016- 13+(Leverage+ratio+report).pdf

2018/02/02
Committee: ECON

Proposal for a regulation
Recital 53

(53) Investments in sustainable infrastructure are essential to ~~strengthen Europe's competitiveness and to stimulate~~progress on social and environmental objectives and to achieve the EU long-term objectives of a smart, inclusive and sustainable economy, while stimulating quality job creation. The recovery and future growth of the Union economy depends largely on the availability of capital for strategic investments of European significance in useful and innovative infrastructure, notably broadband and energy networks, as well as sustainable and decarbonized transport infrastructure, particularly in industrial centres; education, research and innovation; and renewable energy and resources and energy efficiency. The Investment Plan for Europe aims at promoting additional funding to viable infrastructure projects through, inter alia, the mobilization of additional private source of finance. For a number of potential investors the main concern is the perceived absence of viable projects and the limited capacity to properly evaluate risk given their intrinsically complex nature.

2018/02/02
Committee: ECON

Proposal for a regulation
Recital 54

(54) In order to encourage private and public investments in fully sustainable infrastructure projects it is therefore essential to lay down a regulatory environment that is able to promote high quality, innovative and energy efficient infrastructure projects and reduce risks for investors. In particular capital charges for exposures to fully sustainable infrastructure projects should be reduced provided they ~~comply with a~~ present ~~of criteria able to reduce their risk profile and enhance predictability of cash flow~~a real added value for the society, the environment and the economy and are consistent with the EU climate and energy targets. The Commission should review the provision by [three years after the entry into force] in order to assess a) its impact on the volume of infrastructure investments by institutions and the quality of investments having regard to EU's objectives to move towards a low-carbon, climate-resilient and circular economy; and b) its adequacy from a prudential standpoint. The Commission should also consider whether the scope should be extended to infrastructure investments by corporates.

2018/02/02
Committee: ECON

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

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

(ca) In Article 52, paragraph 1, the following subparagraph 2 a is added: By way of derogation from paragraph 1, conditions (p), (q) and (r), shall not apply to instruments issued prior to [date of application of this Regulation]. Such items shall qualify as Additional Tier 1 instruments until the maturity date.

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point d a (new)

(da) In Article 63, the following new subparagraph 1 a is added: "By way of derogation from paragraph 1, conditions (n), (o) and (p) shall not apply to instruments issued prior to [date of application of this Regulation]. Such items shall qualify as Tier 2 instruments until the maturity date."

2018/02/02
Committee: ECON

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

Regulation (EU) No 575/2013
Article 72b – paragraph 4 a (new)

4a. By way of derogation from this paragraph and paragraphs 3 and 4 of this Article, instruments issued prior to [date of application of this Regulation] shall qualify as eligible liabilities instruments where they meet at least conditions laid down in points (a), (b), (c),(e) and (f) of this paragraph. Such instruments shall qualify as eligible liabilities instruments until the maturity date.

2018/02/02
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 39 – point a

Regulation 575/2013
Article 92 – paragraph 1 – point d

(d) a leverage ratio ~~of 3%..~~ requirement according to the following conditions: (i) 3 %, where the total value of the derivative positions of the institution is less or equal to 15 % of its total on- and off-balance sheet assets; (ii) 6 %, where the total value of the derivative positions of the institution is above 15 % of its total on- and off- balance sheet assets and less or equal to 30% of total exposure; (iii) 12 % , where the total value of the derivative positions of the institution is above 30 % of its total on- and off- balance sheet assets; For the purposes of point (d), institutions shall determine the size of their on-and off-balance sheet derivative exposure by including all their derivative positions except credit derivatives that are recognised as internal hedges against non-trading book credit risk exposures.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) No 575/2013
Article 99 – paragraph 7 – point e

(e) recommend amendments of Implementing Regulation (EU) No 680/2014 to reduce the reporting burden on institutions or specified categories of institutions where appropriate having regard to the objectives of this Regulation and Directive 2013/36/EU. The report shall, at a minimum, make recommendations on how to reduce the level of granularity of reporting requirements for small ~~institutions as defined in Article 430a~~and non-complex institutions can be reduced so that the expected average compliance costs shall be at least 20 % lower after the reduced reporting obligations have been applied.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 52 a (new)

Regulation (EU) No 575/2013
Article 123 – introductory part

(52a) The introductory part of Article 123 is replaced by the following: "Exposures that comply with the following criteria shall be assigned a risk weight of 750 %:" ~~(http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=~~Or. en)

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 52 a (new)

Regulation (EU) No 575/2013
Article 123 a (new)

(52a) The following Article 123a is inserted: "Article 123a Exposures to loans, which are secured through salary or pension payments and guaranteed by (i) mandatory insurance, which covers risks of death, inability to work or unemployment of the borrower; (ii) direct repayments by the employer or pension fund through direct deduction from the debtor’s salary or pension and (iii) monthly instalment which do not exceed 35% of the net monthly salary or net pension payment, shall be assigned a risk weighting of 35%."

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 52 a (new)

Regulation (EU) No 575/2013
Article 125 – paragraph 1 – point (a)

(52a) In paragraph 1 of Article 125, point (a) is replaced by the following: "(a) exposures or any part of an exposure fully and completely secured by mortgages on residential property which is or shall be occupied or let by the owner, or the beneficial owner in the case of personal investment companies, shall be assigned a risk weight of ~~35 %; (http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=~~20 % or 35 % depending on the conditions under paragraph 2;" Or. en)

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 52 d (new)

Regulation (EU) No 575/2013
Article 125 – paragraph 2 – point d

(52a) In paragraph 2 of Article 125, point (d) is replaced by the following: "(d) unless otherwise determined under Article 124(2), the part of the loan to which the 3520 % risk weight is assigned does not exceed 80 % of the market value of the property in question or 80 % of the mortgage lending value of the property in question in those Member States that have laid down rigorous criteria for the assessment of the mortgage lending value in statutory or regulatory provisions." (http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=; the part of the loan to which the 35% risk weight is assigned does exceed 80 % of the market value of the property in question or 80 % of the mortgage lending value of the property in question;" Or. en)

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 57 a (new)

Regulation (EU) No 575/2013
Article 178 – paragraph 1

(57a) In Article 178, paragraph 1 is replaced by the following: "1. A default shall be considered to have occurred with regard to a particular obligor when either or both of the following have taken place: (a) the institution considers that the obligor is unlikely to pay its credit obligations to the institution, the parent undertaking or any of its subsidiaries in full, without recourse by the institution to actions such as realising security; (b) the obligor is past due more than 90 days on any material credit obligation to the institution, the parent undertaking or any of its subsidiaries. Competent authorities may replace the 90 days with 180 days for exposures secured by residential or SME commercial real estate in the retail exposure class~~, as well as exposures to public sector entities~~). The 180 days shall not apply for the purposes of Article 127. In the case of retail exposures, institutions may apply the definition of default laid down in points (a) and (b) of the first subparagraph at the level of an individual credit facility rather than in relation to the total obligations of a borrower." In the case of ~~retail~~ exposures to public sector entities, institutions mashall only apply the definition of default laid down in points (a) and (b) of the first subparagraph at the level of an individual credit facility rather than in relation to the total obligations of a borrower." (http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=en)of this paragraph." Or. en

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~~Until [date of application of this Regulation + 5 years], 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

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

(ba) As from [five years after the date of application of this Regulation], institutions shall no longer be permitted to use the internal model approach for market risks set out in Chapter 1b of this Title and shall calculate the own funds requirements for market risks in accordance with the standardized approach for all their trading book positions;

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 104 – point -a (new)

Regulation No 575/2013/EU
Article 412 – paragraph 1 a (new)

(-a) the following new paragraph 1a is inserted: "1a. Institutions shall hold an additional amount of high quality liquid assets (HQLA) Level 1 to account for the risks arising from their exposure in illiquid assets. The stock of HQLA should be increased by the following percentages: (i) 0%, where the total value of the derivative positions of the institution is less or equal to 8% of its total on- and off- balance sheet assets; (ii) 7%, where the total value of the derivative positions of the institution is above 8 % but less or equal to 15% of its total on- and off-balance sheet assets; (iii) 9% where the total value of the derivative positions of the institution is above 15 % but less or equal to 25% of its total on- and off-balance sheet assets; (iv) 12%, where the total value of the derivative positions of the institution is above 25% of its total on- and off-balance sheet assets."

2018/02/05
Committee: ECON

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

Regulation (EU) No 575/2013
Article 428 h – paragraph 1 – introductory part

1. By way of derogation from Article 428g and from Chapters 3 and 4 of this Title, competent authorities ~~may on a case- by-case basis~~shall authorise institutions to apply a higher available stable funding factor or a lower required stable funding factor to assets, liabilities and committed credit or liquidity facilities where all of the following conditions are fulfilled:

2018/02/05
Committee: ECON

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

Regulation (EU) No 575/2013
Article 428 h – paragraph 1 – point b

(b) there are reasons to expect that the liability or committed credit or liquidity facility received constitutes a more stable source of funding or that the asset or committed credit or liquidity facility granted requires less stable funding within the one-year horizon of the net stable funding ratio than the same liability, asset or committed credit or liquidity facility with other counterparties;deleted

2018/02/05
Committee: ECON

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

Regulation (EU) No 575/2013
Article 428 h – paragraph 2

2. Where the institution and the counterparty are established in different Member States, competent authorities may waive the condition set out in point (d) of paragraph 1 where, in addition to the criteria set out in paragraph 1, the following criteria are fulfilled: (a) agreements and commitments between group entities regarding the liability, asset or committed credit or liquidity facility; (b) low funding risk profile; (c) funding receiver has been adequately taken into account in the liquidity risk management of the funding provider. The competent authorities shall consult each other in accordance with point (b) of Article 20(1) to determine whether the additional criteria set out in this paragraph are met.deleted there are legally binding the funding provider presents a the funding risk profile of the

2018/02/05
Committee: ECON

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

Regulation (EU) No 575/2013
Article 428 u – paragraph 2

2. For all netting sets of derivative contracts that are not subject to margin agreements under which institutions post variation margins to their counterparties, institutions shall apply a 120% 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 115

Regulation (EU) No 575/2013
Article 429 c – paragraph 4

4. For the purposes of paragraph 1 of this Article, institutions shall not include collateral received in the calculation of NICA as defined in point 12a of Article 272, except in the case of derivatives contracts with clients where those contracts are cleared by a QCCP.deleted

2018/02/05
Committee: ECON

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

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

5. For the purposes of paragraph 1 of this Article, institutions shall set the value of the multiplier used in the calculation of the potential future exposure in accordance with Article 278(1) to one~~, except in the case of derivatives contracts with clients where those contracts are cleared by a QCCP~~.

2018/02/05
Committee: ECON

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

Regulation (EU) No 575/2013
Article 430 a – point 4

(4) "small and non-complex institution" means an institution which fulfils all the following criteria: (a) the value of the assets of which is on average equal to or less than EUR 1.5 billion or less than 0.1 per cent of GDP of the Member State where it is established, over the four-year period immediately preceding the current annual disclosure period.; (b) the institution is not having significant cross-border activities; (c) the institution is not using internal model-based approach for managing risk weighted assets; (d) the size of the institution's on- and off- balance sheet trading book does not exceeds 5% of total assets; (e) the total value of its derivative positions is less than or equal to 2% of its total on- and off-balance sheet assets;

2018/02/05
Committee: ECON

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

Regulation (EU) No 575/2013
Article 431 – paragraph 1 a (new)

1a. By way of derogation from paragraph 1, small and non-complex institutions may decide not to publicly disclose the information referred to in Title III.

2018/02/05
Committee: ECON

Paul TANG, Jakob von WEIZSÄCKER, Udo BULLMANN, Marco VALLI

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

Regulation (EU) No 575/2013
Article 449 a (new)

Article 449a Disclosure of the climate-related risks 1. From... [3 years after entry into force of this Regulation], institutions disclose the following information on climate-related risks in accordance with Article 84a of Directive 2013/36/EU, and in alignment with the recommendations from the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD): (a) A description of the specific problems relating to climate, which could arise in the short, medium, or long-term and could have a material or financial impact on the institution, and whether these are physical or transition risks; (b) A description of the processes that are used to determine which risks could have a material or financial impact on the institution and how these are integrated into the overall risk management; (c) A description of significant concentrations of credit exposures against carbon-related assets, if these are material. This should include a forward- looking climate scenario analysis assessing how the lending portfolio aligns with the Paris Agreement’ objective of limiting global warming well below 2°C, as recommended by the TCFD (d) A description of the impact of climate-related risks on the business, strategy and financial planning of the institution, if these are material; (e) A description of the processes that the institution uses to identify, evaluate and manage risks; (f) The parameters and metrics that the institution used to evaluate the impact of short-, medium- and long-term climate- related risks on lending and financial intermediary services, if these are material; (g) A description of the role of the board with regard to the evaluation and management of climate-related risks. 2. The management body, as defined in article 88 of 2013/36/EU, will sign for the correctness of the information on climate-related risks described in this article. 3. For the purpose of implementing the definition referred to in this article the EBA may prepare draft technical regulatory standards.

2018/02/05
Committee: ECON

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

Regulation (EU) No 575/2013
Article 449 a (new)

Article 449a Disclosure of ESG-related risks 1. From [3 years after entry into force of this Regulation], institutions disclose the following information on material risks relating to environmental, social and governance factors (ESG), as referred to in the Principles for Responsible Investment supported by the United Nations, including climate-related risks in accordance with the recommendations of the FSB Task Force on Climate-related Financial Disclosures: (a) A description of the risks relating to the environment, use of resources, climate change, as well as social and governance risks, which could arise in the short, medium, or long-term and could have a material or financial impact on the institution; (b) A description of the processes that are used to identify, evaluate and manage those risks and how these are integrated into the institution's overall risk management; (c) A description of significant concentrations of credit exposures against carbon-related assets; (d) A description of the impact of environmental, climate, social and governance-related risks on the business, strategy and financial planning of the institution; (f) A description of the metrics used by the institution to assess and manage relevant ESG-risk, where these are material;

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 126

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

Risk-weighted exposure amounts for exposures to SMEs shall be ~~adjusted in accordance with the following formulae:~~multiplied by the factor 0,7619.

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 126

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

~~(i) if E' <= EUR 1 500 000, RW* = RW0.7612;~~deleted

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 126

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

~~(ii) if E' > EUR 1 500 000, RW* = min {RW; EUR 1 500 000}0.7612 + max {0; RW – 1 500 000}0.85;~~deleted

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 126

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

where: RW* = adjusted risk weighted exposure amount for an exposure to an SME; E' = the total amount owed to the institution and parent undertakings and its subsidiaries, including any exposure in default, by the obligor client or group of connected clients, but excluding claims or contingent claims secured on residential property collateral; RW = risk weighted exposure amount for an exposure to an SME calculated in accordance with Title II, part II and the present Article.deleted

2018/02/05
Committee: ECON

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

Regulation (EU) No 575/2013
Article 501 a – title

Article 501a Adjustment to capital requirements for credit risk for exposures to entities that operate or finance fully sustainable physical structures or facilities, systems and networks that provide or support essential public services

2018/02/05
Committee: ECON

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

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

(b) the exposure is to an entity which was created specifically to finance or operate fully sustainable physical structures or facilities, systems and networks that provide or support essential public services;

2018/02/05
Committee: ECON

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

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

1a. For the purpose of this Article, an infrastructure qualifies as a fully sustainable physical structure or facility, system and network which does not include any of the following: (i) fossil fuel infrastructures related to the use, transportation or storage of coal, oil and gas; (ii) high carbon-intensive transport infrastructures, such as airports and motorways; (iii) construction of nuclear power stations.

2018/02/05
Committee: ECON

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

Regulation (EU) No 575/2013
Article 501 d a (new)

Article 501da Support factor for green assets 1. Risk-weighted exposure amounts for green assets, used for a unit that exists or was created to finance, refinance or operate green assets as described in paragraph 2, shall be multiplied by a factor of 0.7612. 2. For the purpose of this Article, the following shall apply: Green assets are defined in accordance with the related European green taxonomy as recommended by the High Level Expert Group on Sustainable Finance. For the purpose of implementing the definition referred to in subparagraph 1, the EBA shall prepare draft technical regulatory standards. The EBA shall submit those draft regulatory technical standards to the Commission by ... [one year after entry into force of this Regulation] Power is conferred on the Commission to supplement this Regulation by adopting delegated acts in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010 with the regulatory technical standards specified in subparagraph 3 of this paragraph. 3. Institutions shall report the total amount of green assets, calculated in accordance with paragraph 2, to the relevant authorities every three months. 4. The EBA shall, [three years after entry into force of this regulation], report to the Commission on the impact of the own funds requirement on the financing of, and investment in, green assets. For the purposes of this article, the EBA report to the Commission shall include the following: (a) An analysis of the developments in financing and investments in green assets over the period specified in subparagraph 1 of this article; (b) An analysis of the effective risk profile of green assets over an entire economic cycle; (c) Any additional points which the EBA regards as important in this report. 5. The Commission shall submit this report to the European Parliament and the Council, accompanied by a legislative proposal if considered necessary. 6. The Green Support Factor cannot be combined with the SME support factor referred to in Article 501, the infrastructure support factor referred to in Article 501a or the support factor for social enterprises referred to in Article 501db.

2018/02/05
Committee: ECON

Paul TANG, Udo BULLMANN, Marco VALLI

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

Regulation (EU) No 575/2013
Article 501 d a (new)

Article 501da Support factor for green assets 1. Risk-weighted exposure amounts for green exposures to corporates, used for a unit that exists or was created to finance, refinance or operate green assets as described in paragraph 3, and which meet the prudential criteria as set out in Article 501a(1)(c)-(n) and Article 501a(2), shall be adjusted in accordance with the following formulae: (i) if E' <= EUR 1 500 000, RW* = RW 0.7612; (ii) if E' > EUR 1 500 000, RW* = min {RW; EUR 1500 000} * 0.7612 + max {0; RW – 1 500 000} * 0.85; where: RW* = adjusted risk-weighted exposure amount for green exposure; E' = the total amount in green exposures owed to the institution and parent undertakings and its subsidiaries, including any exposure in default, by the obligor client or group of connected clients, but excluding claims or contingent claims secured on residential property collateral; RW= risk-weighted exposure amount for green exposure, calculated in accordance with Part II, Title II and this Article. 2. For the purpose of this Article, the following shall apply: The Commission is empowered supplement this Regulation by adopting delegated acts in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010 to define a carbon footprint methodology, in order to compile a list of exposures that are defined as green exposures. For the purpose of implementing the definition referred to in this paragraph and the compilation of the green exposures list, the EBA shall prepare draft technical regulatory standards. The EBA shall submit those draft regulatory technical standards to the Commission by ... [two years after entry into force of this Regulation]. 4. Institutions shall report the total amount of green assets, calculated in accordance with paragraph 2, to the relevant authorities every three months. 5. The EBA shall, [three years after entry into force of this regulation], report to the Commission on the impact of the own funds requirement on the financing of, and investment in, green assets. For the purposes of this article, the EBA report to the Commission shall include the following: (a) An analysis of the developments in financing and investments in green assets over the period specified in in this paragraph; (b) An analysis of the effective risk profile of green assets over an entire economic cycle; (c) Any additional points which the EBA regards as important in this report. 6. The Commission shall submit this report to the European Parliament and the Council, accompanied by a legislative proposal if considered necessary. 7. The Green Support Factor cannot for the same assets be combined with the SME support factor referred to in Article 501, the infrastructure support factor referred to in Article 501a or the support factor for social enterprises referred to in Article 501db.

2018/02/05
Committee: ECON

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

Regulation (EU) No 575/2013
Article 501 d a (new)

Article 501da Capital surcharge for carbon intensive assets 1. Risk-weighted exposure amounts for carbon intensive assets, used for a unit that exists or was created to finance, refinance or operate carbon intensive assets as described in paragraph 2, shall be multiplied by a factor of 1.25. 2. For the purpose of this Article: Carbon intensive assets are defined in accordance with the relevant European taxonomy as recommended by the recommendations of the High Level Expert Group on Sustainable Finance. For the purpose of implementing the definition referred to in subparagraph 1, the EBA shall prepare draft technical regulatory standards. The EBA shall submit those draft regulatory technical standards to the Commission by ... [one year after entry into force of this Regulation] Power is conferred on the Commission to supplement this Regulation by adopting delegated acts in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010 with the regulatory technical standards specified in subparagraph 3 of this paragraph. 3. Institutions shall report the total amount of carbon intensive assets, calculated in accordance with paragraph 2, to the relevant authorities every three months. 4. The EBA shall, [three years after entry into force of this regulation], report to the Commission on the impact of the own funds requirement on the financing of, and investment in, carbon-related assets. For the purposes of this article, the EBA report to the Commission shall include the following: (a) An analysis of the reduction in financing and investments in carbon intensive assets over the period specified in subparagraph 1 of this article; (b) An analysis of the effective risk profile of carbon intensive assets over an entire economic cycle; (c) Any additional points which the EBA regards as important in this report. 5. The Commission shall submit this report to the European Parliament and the Council, accompanied by a legislative proposal if considered necessary.

2018/02/05
Committee: ECON

Paul TANG, Jakob von WEIZSÄCKER, Udo BULLMANN, Marco VALLI

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

Regulation (EU) No 575/2013
Article 501 d a (new)

Article 501da Penalising factor for brown assets 1. Risk-weighted exposure amounts for brown exposures, used for a unit that exists or was created to finance, refinance or operate brown assets as described in paragraph 2, shall be adjusted in accordance with the following formulae: (i) if E' <= EUR 1 500 000, RW** = RW 1.15; (ii) if E' > EUR 1 500 000, RW* = min {RW; EUR 1500 000} * 1.15 + max {0; RW – 1 500 000} * 1.2388; where: RW** = adjusted risk-weighted exposure amount for brown exposure; E' = the total amount owed in brown exposures to the institution and parent undertakings and its subsidiaries, including any exposure in default, by the obligor client or group of connected clients, but excluding claims or contingent claims secured on residential property collateral; RW= risk-weighted exposure amount for brown exposure, calculated in accordance with Part II, Title II and this Article. 2. For the purpose of this Article, the following shall apply: The Commission is empowered supplement this Regulation by adopting delegated acts in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010 to define a carbon footprint methodology, in order to compile a list of exposures that are defined as brown exposures, taking into account the transition of institutions to a low carbon strategy. For the purpose of implementing the definition referred to in this paragraph and the compilation of the brown exposures list, the EBA shall prepare draft technical regulatory standards. The EBA shall submit those draft regulatory technical standards to the Commission by ... [two years after entry into force of this Regulation]. 3. Institutions shall report the total amount of brown assets, calculated in accordance with paragraph 2, to the relevant authorities every three months. 4. The EBA shall, [three years after entry into force of this regulation], report to the Commission on the impact of the own funds requirement on the financing of, and investment in, brown assets. For the purposes of this article, the EBA report to the Commission shall include the following: (a) An analysis of the developments in financing and investments in brown assets over the period specified in this paragraph; (b) An analysis of the effective risk profile of brown assets over an entire economic cycle; (c) Any additional points which the EBA regards as important in this report. 6. The Commission shall submit this report to the European Parliament and the Council, accompanied by a legislative proposal if considered necessary.

2018/02/05
Committee: ECON

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

Regulation (EU) No 575/2013
Article 501 d a (new)

Article 501da Support factor for social enterprises 1. Risk-weighted exposure amounts for social enterprises, used for a unit that exists or was created to finance or refinance social enterprises as described in paragraph 2, shall be multiplied by the factor 0.60. 2. For the purposes of this Article: Irrespective of its legal form, a social enterprise is a company, as defined in the Communication from the Commission of 25 October 2011 on social business, which meets the following criteria: (a) The company agreement, company charter or any other documents required by law that found the company, provide for a measurable and positive improvement of social and societal impact as the main corporate objective; (b) The company offers services or products that generate social returns, or the company uses production methods for its services or products that are in line with the company’s social purpose; (c) Profit is principally and primarily used to achieve the social purpose of the company; (d) The company is managed in a responsible and transparent manner, in particular through the participation of employees, customers and other interest groups affected by the activities carried out by the social enterprise. 3. The EBA shall, [three years after entry into force of this regulation], report to the Commission on the impact of the own funds requirement on the financing of, and investment in, social enterprises. For the purposes of this article, the EBA report to the Commission shall include the following: (a) An analysis of the developments in financing and investments in social enterprises over the period specified in subparagraph 1 of this article; (b) An analysis of the effective risk profile of financing social enterprises over an entire economic cycle; (c) Any additional points which the EBA regards as important in this report. 4. The Commission shall submit this report to the European Parliament and the Council, accompanied by a legislative proposal if considered necessary. 5. The support factor for social enterprises cannot be combined with the SME support factor referred to in Article 501, the infrastructure support factor referred to in Article 501a or the green support factor referred to in Article 501ac

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 128

Regulation (EU) No 575/2013
Article 507

(128) Article 507 is replaced by the following: ‘Article 507 Large exposures The EBA shall monitor the use of exemptions set out in Article 390 (6) and Article 400 (1) and Article 400(2) and by [one year after entry into force of the amending Regulation] submit a report to the Commission assessing the quantitative impact that the removal of those exemptions or the setting of a limit on their use would have. The report shall assess, in particular, for each exemption provided for in those Articles: (a) exempted in each Member State; (b) make use of the exemption in each Member State; (c) exempted in each Member State.;’deleted the number of large exposures the number of institutions that the aggregate amount of exposures

2018/02/05
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 128

"Article 507 Large exposures By 31 December 2015, the Commission shall review and report on the application of Article 400(1)(j) and Article 400(2), including whether the exemptions set out in Article 400(2) is to be discretionary, and shall submit that report to the European Parliament and to the Council, together with a legislative proposal if appropriate. With respect to the potential elimination of the national discretion under Article 400(2)(c) and its potential application at the Union level, the review shall in particular take into account the efficiency of group risk management while ensuring that sufficient safeguards are in place to ensure financial stability in all Member States in which an entity belonging to a group is incorporated." (http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=en)(128a) Article 507 is deleted. deleted Or. en

2018/02/05
Committee: ECON

Proposal for a regulation
Article 3 – paragraph 2 – subparagraph 1 – point b a (new)

(ba) the provisions on the adjusted SME supporting factor as provided for in Article 501, which shall apply from the date of entry into force of this Regulation.

2018/02/05
Committee: ECON