9 Amendments of Jakob von WEIZSÄCKER related to 2016/0360A(COD)
Amendment 192 #
Proposal for a regulation
Recital 13
Recital 13
(13) The Basel Committee is currently considering the introduction of a leverage ratio surcharge for globally systemically important banks (G-SIBs). The final outcome of the Basel Committee's calibration workFor institutions that are designated globally systemically important institutions (G-SIIs) because of their size, interconnectedness, complexity, irreplaceable nature or global relevance, a leverage ratio surcharge should be introduced, on account of the too-big-to- fail problem. European legislation should take into account the strict leverage ratios which already exist in other jurisdictions in order to effectively counteract these negative externalities. Furthermore, a surcharge of this kind for G-SIIs is readily implementable since G-SIIs in the Union already significantly exceed a leverage ratio of 3%1a. The leverage ratio for G-SIIs should givbe raised to a discussion on the appropriate calibration of the leverage ratio for stotal of 5%. __________________ 1a Basel Committee on Banking Supervision, Basel III Monitoring Report, February 2017: http://www.bis.org/bcbs/publ/d397.pdf (p.49). Economic Governance Support Unit (EGOV) of the European Parliament, Briefing: Global Systemically iImportant EU institutions. Banks in Europe (PE 574.406): http://www.europarl.europa.eu/RegData/e tudes/BRIE/2016/574406/IPOL_BRI(201 6)574406_EN.pdf (p.7).
Amendment 196 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
(13a) To prevent an institution from paying out own funds, even though its capital position is weak, a buffer on top of the prescribed leverage ratio should be met. Should the institution fail to meet this buffer, the institution is prohibited from distributing its own capital to shareholders and management, until the capital position meets the minimum leverage ratio plus the leverage ratio buffer requirement (LRBR).
Amendment 241 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3 – point j
Article 1 – paragraph 1 – point 3 – point j
Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 144 a (new)
Article 4 – paragraph 1 – point 144 a (new)
(144a) ‘small and non-complex institution’ means an institution which fulfils all of the following criteria: (a) the total value of the assets at the consolidated level, or, in the case of institutions controlled by a parent undertaking, a financial holding company or a mixed financial holding company, the total value of assets of the parent entity at the consolidated level is less than or equal to EUR 1,5 billion; (b) the resolution assessment in accordance with Articles 15 and 16 of Directive 2014/59/EU concludes that the liquidation of the institution in normal insolvency proceedings is feasible and credible; (c) the institution is not a large institution within the meaning of Article 4(1) point 144b; (d) its trading activities are classified as low within the meaning of Article 94; (e) the total value of its derivative exposures is less than or equal to 2% of its total on- and off-balance sheet assets, where only derivatives which qualify as positions held with trading intent are included in calculating the derivative exposures; (f) the institution does not use internal models for calculating own funds requirements; (g) the institution has not communicated to the competent authority an objection to being classified as a small and non- complex institution; (h) the competent authority has not decided that the institute is not to be considered a small and non-complex institution based on an analysis of its size, connectivity, complexity or risk profile. Within the Single Supervisory Mechanism the threshold in point (a) can be adjusted upward or downward for an institution, taking into consideration the total value of assets of the parent entity at the consolidated level in relation to the GDP of the member state of the institution.
Amendment 480 #
Proposal for a regulation
Article 1 – paragraph 1 – point 39 – point a
Article 1 – paragraph 1 – point 39 – point a
Regulation (EU) No 575/2013
Article 92 – paragraph 1 – point d
Article 92 – paragraph 1 – point d
(d) a leverage ratio of 35%..
Amendment 483 #
Proposal for a regulation
Article 1 – paragraph 1 – point 39 – point a a (new)
Article 1 – paragraph 1 – point 39 – point a a (new)
Regulation (EU) No 575/2013
Article 92 – paragraph 1 – point d a (new)
Article 92 – paragraph 1 – point d a (new)
(aa) in paragraph 1, the following point (d a) is added: "(da) By way of derogation from point d, a leverage ratio of 5% for institutions which are G-SIIs or part of a G-SII;"
Amendment 486 #
Proposal for a regulation
Article 1 – paragraph 1 – point 40
Article 1 – paragraph 1 – point 40
Regulation (EU) No 575/2013
Article 92 -a (new)
Article 92 -a (new)
(40) The following Article 92 -a is inserted: Article 92 -a 1. An institution that fails to keep a leverage ratio of at least 5%, the leverage ratio buffer requirement (LRBR), shall be prohibited from making a distribution in connection with its own funds to an extent that would decrease its leverage ratio. 2. Institutions that fail to meet the leverage ratio buffer requirement (LRBR) shall notify the competent authority and any such institution is prohibited from undertaking any of the following actions before it has fulfilled the requirement of paragraph 1: (a) make a distribution of its own funds that would decrease its leverage ratio; (b) pay variable remuneration or discretionary pension benefits; (c) make payments on own funds instruments. 3. The restrictions imposed by this Article shall only apply to payments that result in a reduction of own funds or in a reduction of profits, and where a suspension of payment or failure to pay does not constitute an event of default or a condition for the commencement of proceedings under the insolvency regime applicable to the institution. 4. Where an institution fails to meet the leverage ratio buffer requirement (LRBR) and still intends to distribute any of its distributable profits or undertake an action referred to in points (a), (b) and (c) of the second subparagraph of paragraph 2, it shall first obtain permission from the competent authority and provide the following information: (a) the amount of capital maintained by the institution, subdivided as follows: (i) Common Equity Tier 1 capital, (ii) Additional Tier 1 capital, (iii) Tier 2 capital; (b) the amount of its interim and year- end profits; (c) the amount of distributable profits it intends to allocate between the following: (i) dividend payments, (ii) share buy backs, (iii) payments on Additional Tier 1 instruments, (iv) the payment of variable remuneration or discretionary pension benefits. 5. Institutions shall maintain arrangements to ensure that the leverage ratio buffer is calculated accurately, and shall be able to demonstrate that accuracy to the competent authority on request. 6. For the purposes of paragraphs 1 and 2, a distribution in connection with its own funds shall include the following: (a) a payment of cash dividends; (b) a distribution of fully or partly paid bonus shares or other capital instruments referred to in Article 26(1)(a) of this Regulation; (c) a redemption or purchase by an institution of its own shares or other capital instruments referred to in Article 26(1)(a) of this Regulation; (d) a repayment of amounts paid up in connection with capital instruments referred to in Article26(1)(a) of this Regulation; (e) a distribution of items referred to in points (b) to (e) of Article 26(1) of this Regulation.
Amendment 527 #
Proposal for a regulation
Article 1 – paragraph 1 – point 42
Article 1 – paragraph 1 – point 42
(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 technical standards and guidelines can create uniform reporting formats to reduce the level of granularity of reporting requirements for small and non-complex institutions as defined in Article 430a.
Amendment 984 #
Proposal for a regulation
Article 1 – paragraph 1 – point 116
Article 1 – paragraph 1 – point 116
Regulation (EU) No 575/2013
Article 449 a (new)
Article 449 a (new)
Amendment 1064 #
Proposal for a regulation
Article 1 – paragraph 1 – point 127
Article 1 – paragraph 1 – point 127
Regulation (EU) No 575/2013
Article 501 d a (new)
Article 501 d a (new)