Activities of Marco VALLI related to 2018/0060(COD)
Plenary speeches (1)
Minimum loss coverage for non-performing exposures (debate) IT
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on amending Regulation (EU) No 575/2013 as regards minimum loss coverage for non-performing exposures PDF (671 KB) DOC (70 KB)
Amendments (41)
Amendment 72 #
Proposal for a regulation
Recital 5
Recital 5
(5) The prudential backstop should not prevent competent authorities from exercising their supervisory powers in accordance with Directive 2013/36/EU. Where competent authorities ascertain on a case-by-case basis that, despite the application of the prudential backstop for NPEs established in this Regulation, the NPEs of a specific institution are not sufficiently covered, they may make use of the supervisory powers envisaged in Directive 2013/36/EU, including the powerapplication of the prudential backstop for NPEs established in this Regulation ensures that non-performing exposures are sufficiently covered. Therefore, competent authorities should not impose the additional own funds requirement referred to in Article 104(1)(d) of that Directive 2013/36/EU to cover losses on NPEs of specific institutions.
Amendment 86 #
Proposal for a regulation
Recital 7
Recital 7
(7) The longer an exposure has been non-performing, the lower the probability for the recovery of its value. Therefore, the portion of the exposure that should be covered by provisions, other adjustments or deductions should increase with time, following a pre-defined calendar. NPEs purchased by an independent institution should not be classified as non- performing for the purpose of this Regulation and should thus not be subject to the calendar provisioning.
Amendment 96 #
Proposal for a regulation
Recital 9
Recital 9
(9) A different calendar should be applied depending on whether the exposure is non-performing because the obligor is past due more than 90 days or if it is non- performing for other reasons. In the first case, the minimum coverage requirement should be higher as the institution has not received any payment from the obligor over a long period. In the second case, there should be no full coverage requirement as there is still some repayment or a higher probability of repayment. In order to ensure a sufficient coverage that is appropriate and proportionate to the institution's overall risk exposure, the applicable prudential minimum coverage requirement should be determined at portfolio level.
Amendment 104 #
Proposal for a regulation
Recital 11
Recital 11
(11) In order to ensure that the credit protection valuation of institutions' NPEs follows a prudent approach, EBA should consider the need for and, if necessary, develop a common methodology, in particular regarding assumptions pertaining to recoverability and enforceability, and possibly including minimum requirements for re-valuation in terms of timing. The prudential backstop should not lead to any changes in the loss given default estimates of institutions.
Amendment 106 #
Proposal for a regulation
Recital 12
Recital 12
(12) In order to facilitate a smooth transition towards this new prudential backstop, the new rules should not be applied in relation to exposures originated prior to 14 March 2018. The Commission has repeatedly made public its intention to introduce a prudential backstop for NPEs. As of the date of the legislative proposal there should be sufficient clarity for institutions and other stakeholders on how the prudential backstop envisaged by the Commission would applythe entry into force of this Regulation.
Amendment 117 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 1 – point a
Article 47a – paragraph 1 – point a
(a) a debt instrument, including a debt security, a loan, an advance, a cash balance at a central bank and any other and a demand deposit;
Amendment 126 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 2 – subparagraph 1
Article 47a – paragraph 2 – subparagraph 1
For the purposes of Article 36(1)(m), the exposure value of a debt instrument shall be its accounting value measured without taking into account any specific credit risk adjustments, additional value adjustments in accordance with Articles 34 and 105, amounts deducted in accordance with Article 36(1)(m) or other own funds reductions related to the exposure or partial write-offs made by the institution since the exposure was classified as non- performing.
Amendment 131 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 2 – subparagraph 2
Article 47a – paragraph 2 – subparagraph 2
For the purposes of Article 36(1)(m), the exposure value of a loan commitment given, a financial guarantee given or other commitments given shall be its nominal value, which shall represent the institution’s maximum exposure to credit the following percentage of its nominal value, in accordance with the risk categories as indicated in Annex I: (a) 100 % if it is a full-risk item; (b) 50% if it is a medium-risk without taking account of any funded or unfunded credit protection. In particular,em; (c) 20% if it is a medium/low-risk item; (d) 0% if it is a low-risk item.
Amendment 133 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 2 – subparagraph 2 – point a
Article 47a – paragraph 2 – subparagraph 2 – point a
Amendment 135 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 2 – subparagraph 2 – point b
Article 47a – paragraph 2 – subparagraph 2 – point b
Amendment 140 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 3 – subparagraph 2
Article 47a – paragraph 3 – subparagraph 2
Amendment 143 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 3 – subparagraph 2 a (new)
Article 47a – paragraph 3 – subparagraph 2 a (new)
For the purposes of this paragraph, where an institution has on-balance sheet exposures to an obligor that were purchased through a market transaction and are classified as non-performing, additional exposures to that obligor by the same institution shall not be classified as non-performing, provided that appropriate due diligence policies and procedures have been put in place.
Amendment 145 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 3 a (new)
Article 47a – paragraph 3 a (new)
3 a. For the purposes of Article 36(1)(m), exposures that have been purchased through a market transaction by independent institutions and that were non-performing at the time of purchase shall not be classified as non-performing.
Amendment 172 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 1 – subparagraph 1 – introductory part
Article 47c – paragraph 1 – subparagraph 1 – introductory part
For the purposes of Article 36(1)(m), institutions shall determine the applicable amount of insufficient coverage for the overall amount of non- performing exposures to be deducted from Common Equity Tier 1 items by subtracting the amount determined in point (b) from the amount determined in point (a):
Amendment 178 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 1 – subparagraph 1 – point b – introductory part
Article 47c – paragraph 1 – subparagraph 1 – point b – introductory part
(b) the sum of the following items provided they relate to a specific non- performing exposure:
Amendment 188 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 1 – subparagraph 1 – point b – point iv a (new)
Article 47c – paragraph 1 – subparagraph 1 – point b – point iv a (new)
(iv a) amounts written-off by the institution since the exposure was classified as non-performing, as applicable;
Amendment 202 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 2 – point a
Article 47c – paragraph 2 – point a
Amendment 214 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 2 – point b
Article 47c – paragraph 2 – point b
Amendment 217 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 2 – point c
Article 47c – paragraph 2 – point c
(c) 1 for the unsecured part of a non- performing exposure to be applied as of the first day of the secondixth year following its classification as non-performing, where the obligor is past due more than 90 days;
Amendment 227 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 2 – point d
Article 47c – paragraph 2 – point d
Amendment 233 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point a
Article 47c – paragraph 3 – point a
Amendment 241 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point b
Article 47c – paragraph 3 – point b
Amendment 249 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point c
Article 47c – paragraph 3 – point c
Amendment 253 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point d
Article 47c – paragraph 3 – point d
Amendment 265 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point e
Article 47c – paragraph 3 – point e
(e) 0.175 for the secured part of a non- performing exposure to be applied during the period between three andas of the first day of the fourth years following its classification as non- performing, where the obligor is past due more than 90 days;
Amendment 273 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point f
Article 47c – paragraph 3 – point f
(f) 0.1407 for the secured part of a non- performing exposure to be applied during the period between three andas of the first day of fourth years following its classification as non- performing, where the obligor is not past due more than 90 days;
Amendment 278 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point g
Article 47c – paragraph 3 – point g
(g) 0.2715 for the secured part of a non- performing exposure to be applied during the period between four and fiveas of the first day of the fifth years following its classification as non- performing, where the obligor is past due more than 90 days;
Amendment 286 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph – point h
Article 47c – paragraph – point h
(h) 0.212 for the secured part of a non- performing exposure to be applied during the period between four and fiveas of the first day of the fifth years following its classification as non- performing, where the obligor is not past due more than 90 days;
Amendment 292 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point i
Article 47c – paragraph 3 – point i
(i) 0.422 for the secured part of a non- performing exposure to be applied during the period between five andas of the first day of the sixth years following its classification as non- performing, where the obligor is past due more than 90 days;
Amendment 300 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point j
Article 47c – paragraph 3 – point j
(j) 0.3217 for the secured part of a non- performing exposure to be applied during the period between five andas of the first day of the sixth years following its classification as non- performing, where the obligor is not past due more than 90 days;
Amendment 305 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point k
Article 47c – paragraph 3 – point k
(k) 0.535 for the secured part of a non- performing exposure to be applied during the period between six andas of the first day of the seventh years following its classification as non- performing, where the obligor is past due more than 90 days;
Amendment 314 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point l
Article 47c – paragraph 3 – point l
(l) 0.4427 for the secured part of a non- performing exposure to be applied during the period between six andas of the first day of the seventh years following its classification as non- performing, where the obligor is not past due more than 90 days;
Amendment 321 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point m
Article 47c – paragraph 3 – point m
(m) 0.75 for the secured part of a non- performing exposure to be applied during the period between seven andas of the first day of the eight years following its classification as non- performing, where the obligor is past due more than 90 days;
Amendment 328 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47 c – paragraph 3 – point n
Article 47 c – paragraph 3 – point n
(n) 0.64 for the secured part of a non- performing exposure to be applied during the period between seven andas of the first day of the eight years following its classification as non- performing, where the obligor is not past due more than 90 days;
Amendment 335 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point o
Article 47c – paragraph 3 – point o
(o) 10.7 for the secured part of a non- performing exposure to be applied as of the first day of the eighninth year following its classification as non-performing, where the obligor is past due more than 90 days;
Amendment 342 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47 c – paragraph 3 – point p
Article 47 c – paragraph 3 – point p
(p) 0.855 for the secured part of a non- performing exposure to be applied as of the first day of the eighninth year following its classification as non-performing, where the obligor is not past due more than 90 days.
Amendment 345 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 3 – point p a (new)
Article 47c – paragraph 3 – point p a (new)
(p a) 0.7 for the secured part of a non- performing exposure to be applied as of the first day of the tenth year following its classification as non-performing, where the obligor is not past due more than 90 days.
Amendment 360 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 4 a (new)
Article 47c – paragraph 4 a (new)
4 a. By way of derogation from paragraphs 2 and 3, where the exposure turns non-performing after 30 June, the calendar shall run from 1 January of the following year.
Amendment 368 #
Proposal for a regulation
Article 1 – paragraph 7
Article 1 – paragraph 7
Regulation (EU) No 575/2013
Article 469 a a (new)
Article 469 a a (new)
Reporting and review Two years after the date of entry into force of this Regulation, the Commission shall report to the European Parliament and the Council on the application of the provisions of this Regulation from a macro-prudential and socio-economic perspective. That report shall, if appropriate, be accompanied by a legislative proposal and shall, in particular, assess the following points: (a) the impact of the calendar provisioning on the sale and pricing of NPLs and the competition effects on the level playing field between buyers and sellers; (b) the development of truly efficient, competitive and transparent secondary markets for NPLs; (c) the impact on financial stability of Member States' banking sector, in particular any impact on economic losses and capital shortfalls resulting from the sales of NPLs to third parties at lower prices than their book value; (d) the effects on the real estate market of Member States; (e) the impact on the financing of the real economy, in particular on access to credit to households, SMEs and start-ups; (f) the social and economic impact on the availability of restructuring processes, in particular of viable SMEs, and any adverse effect on firms' bankruptcies and unemployment; (f) the impact on the diversity of banking models.
Amendment 369 #
Proposal for a regulation
Article 1 – paragraph 7
Article 1 – paragraph 7
Regulation (EU) No 575/2013
Article 469a – subparagraph 1
Article 469a – subparagraph 1
By way of derogation from Article 36(1)(m), institutions shall not deduct from Common Equity Tier 1 items the applicable amount of insufficient coverage for non performing exposures where the exposure was incurred prior to 14 March 2018the date of entry into force of this Regulation.
Amendment 375 #
Proposal for a regulation
Article 1 – paragraph 7
Article 1 – paragraph 7
Regulation (EU) No 575/2013
Article 469 a – subparagraph 2
Article 469 a – subparagraph 2
Where the terms and conditions of an exposure which was incurred prior to 14 March 2018the date of entry into force of this Regulation are modified by the institution in a way that increases the institution's exposure to the obligor, the exposure shall be considered as having been incurred on the date when the modification applies and shall cease to be subject to the derogation provided in the first subparagraph..