11 Amendments of Fulvio MARTUSCIELLO related to 2018/0060(COD)
Amendment 97 #
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. The prudential backstop should be applied at portfolio level. 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.
Amendment 110 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
Regulation (EU) No 575/2013
Article 36 – paragraph 1 – point m (new)
Article 36 – paragraph 1 – point m (new)
(m) other than the exposures purchased through a market transaction by a credit institution specialised in non- performing exposures purchasing which were non-performing at the time of the purchase, and exposures extended by a specialised credit institution towards an obligor whose other exposures on the institution balance sheets are in default and that were purchased through a market transaction, the applicable amount of insufficient coverage for non- performing exposures.;
Amendment 112 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
Regulation (EU) No 575/2013
Article 36 – paragraph 1 – point m (new)
Article 36 – paragraph 1 – point m (new)
(m) the applicable amount of insufficient coverage for non-performing exposures. other than exposures purchased by a specialised debt restructurer which were non-performing at the time of purchase;
Amendment 118 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 1 – point b
Article 47a – paragraph 1 – point b
(b) a loan commitment given, a financial guarantee given or any other commitment given, irrespective whether revocable or irrevocable except undrawn credit facilities which may be cancelled unconditionally at any time and without notice, or that effectively provide for automatic cancellation owing to deterioration in the borrower's creditworthiness. The following items are excluded from the definition of "exposure" for the purposes of Article 36(1)(m): (a) items that are held at fair value through profit; (b) items that were purchased from an independent third party and that were already classified as non-performing as of the purchase date. In case of NPEs' purchases, institutions shall inform the competent authorities on their scale, composition and price, and shall provide the Competent Authorities with regular informations regarding the status of the purchased items.
Amendment 155 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 7 a (new)
Article 47a – paragraph 7 a (new)
7a. For the purposes of Article 36(1)(m)(a), 'market transaction' shall mean the purchase of exposures in default where it complies with the following conditions: (i) it is carried out under market conditions; (ii) before exposing itself to the risks of the transaction, the institution is able to demonstrate to the competent authorities that it has implemented thorough and verifiable due diligence on the non- performing exposures purchased, including the value of the guarantees and whether or not they may be excluded, and its results have been taken into due consideration in determining the price of the transaction.
Amendment 157 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 7 a (new)
Article 47a – paragraph 7 a (new)
7 a. For the purpose of Article 36(m) "specialised debt restructurer" means an institution that, during the preceding financial year, complies with the following conditions : (i) the main activity of the institution is the purchase of exposures of other institutions and its management body has implemented a clear and effective internal decision process to this end; (ii) the book value of its own originated loans does not exceed 10 % of the aggregate book value, including purchased performing and non- performing exposures, of its loans;and (iii) its total assets do not exceed EUR 30,000,000,000.
Amendment 161 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 7 b (new)
Article 47a – paragraph 7 b (new)
7 b. EBA shall, taking into account the criteria set out in points (i) to (iii) of paragraph 1a, develop draft regulatory technical standards specifying the conditions under which an institution may be considered a specialised debt restructurer. EBA shall submit those draft regulatory technical standards to the Commission by [12 months after the date of entry into force of this amending Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 165 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47a – paragraph 7 b (new)
Article 47a – paragraph 7 b (new)
7b. For the purposes of Article 36(1)(m)(a), 'institution specialised in non-performing exposures purchasing' means an institution which meets the following conditions (on a consolidated basis if applicable): (i) it has implemented formal policies and processes that ensure clear and effective internal governance and risk management for the purchase of non- performing exposures, including - with reference to the assessment, management and recovery of non-performing exposures - an effective second-level internal monitoring system; (ii) it has implemented policies and authorisation processes in relation to the increase in exposure to obligors whose other exposures in the institution's balance sheet are in default and were purchased through a market transaction, based on due diligence processes which demonstrate the sustainability of the new funding, and the result of that process is confirmed by an independent third party; (iii) it has not been identified as a global systemically important institution (G-SII) or other systemically important institution (O-SII) pursuant to Article 131 of Directive 2013/36/EU.
Amendment 180 #
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 367 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c a (new)
Article 47c a (new)
Article 47d Transactions under market conditions 1.For the purposes of Article 47a a transaction shall be regarded as having been carried out under market conditions when the terms of the transaction are equivalent to those of a normal commercial transaction, namely where: (a) the parties had no relationship with each other (including, but not limited to, any special commitments or obligations and any opportunity to control or influence each other);and (b) each party: i. acted independently; ii.entered into the transaction of their own free will; iii. acted in their own interest;and iv. did not complete the transaction on the basis of considerations that were not directly linked to the transaction in question (external considerations which include, but are not limited to, the reduction of the scope of Article 36 (1)(m)). 2. During the assessment referred to in paragraph 1, due account shall be taken of the information available to each party at the time of entry into force of the transaction, not information which becomes available subsequently.
Amendment 380 #
Proposal for a regulation
Article 1 a (new)
Article 1 a (new)
Article 1 a Review By [six months after the entry into force of this amending Regulation] the Commission shall review and report on the interaction with Regulation (EU) 2017/2395 with a view to ensuring supervisory coherence. By [two years after entry into force of this amending Regulation], the Commission shall review and report on the impact, effectiveness and outcomes of this amending Regulation, and in particular on its interaction with the supervisory reporting framework, the other actions taken at national and EU level to tackle NPLs and develop a secondary market, and the institution-specific supervisory practices.