BETA

47 Amendments of Barbara KAPPEL related to 2016/0360B(COD)

Proposal for a regulation
Article 1 – paragraph 1 – point 7 (new)

Regulation (EU) No 575/2013
Article 11 – paragraph 6 a (new)

6a. By way of derogation to paragraph 1 and 2, the consolidating supervisor may allow that institutions comply, to the extent and in the manner prescribed in Article 18, with the obligations laid down in Parts Two to Four and Parts Six to Eight of this Regulation and in Title VII of Directive 2013/36/EU on a different consolidated basis. Specifically, on a case- by-case basis, the consolidating supervisor may not consider the parent financial holding company or the parent mixed financial holding company as parent institution for the group, provided the following conditions are met: a) The articles of association of the parent financial holding company or the parent mixed financial holding company explicates that the parent financial holding company or the parent mixed financial holding cannot undertake management and coordination functions of their subsidiaries b) The parent financial holding company or the parent mixed financial holding company does not have any other significant investment than the institution or credit institution set forth in the following subparagraph c) There is a direct subsidiary in the same Member State of the parent financial holding company or the parent mixed financial holding company that: i. is not controlled by any credit institution or investment firm ii. undertakes management and coordination functions of the group Should the consolidating supervisor not consider the parent financial holding company or the parent mixed financial holding company as parent institution for the group, the EU institution referred to subparagraph (c) shall be identified as the parent institution of the group.

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 575/2013
Article 18 – paragraph 4

4. The consolidating supervisor shall require the proportional consolidation according to the share of capital held of participations in institutions and financial institutions managed by an undertaking included in the consolidation or by the parent institutions, financial holding companies and mixed financial holdings together with one or more undertakings not included in the consolidation, where the liability of those undertakings is limited to the share of the capital they hold.

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 27 (new)

Regulation (EU) No 575/2013
Article 72a – paragraph 1 – point b a (new)

(ba) Minority interests related to Common Equity Tier 1, Additional Tier 1 and Tier 2 items not included in consolidated own funds.

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 48

Regulation (EU) No 575/2013
Article 104 – paragraph 2 – point e

(e) financial assets or liabilities ~~measured at fair value~~held as accounting trading assets or liabilities;

2017/06/23
Committee: ECON

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

Regulation (EU) No 575/2013
Article 155a (new)

(57a) The following Article 155a is inserted: “Article 155a 1.The risk-weighted exposure amount for investments in private equity in the form of units or shares in a Collective Investment Undertakings as resulting from art 128, 132, 152 and 155 complying with point 2 below, shall be adjusted, in accordance with the following formulae: Adjusted risk-weighted exposure amount = RW exposure value * 0,85 2.For the purpose of this Article, the exposures to private equity investments will comply with both the following criteria: (a) investments done in not listed with a turnover up to 150 million euros; this requirement will have to be specified in the fund’s rules; (b) each investment transaction can’t exceed 150 million euros; this target amount will have to be specified in the fund’s rules. 3.The Commission shall, by (three years after the entry into force) report on the impact of the requirement laid down in this Regulation on private equity investments and shall submit that report to the European Parliament and to the Council, together with a legislative proposal, if appropriate.”

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 83

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

1. An institution may calculate the own funds requirements for market risks with the approach referred to in point (c) of Article 325(1) provided that the size of the institution’s on- and off-balance sheet business subject to market risks is equal to or less than the higher of the following thresholds on the basis of an assessment carried out on a monthly basis:

2017/06/23
Committee: ECON

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

Regulation (EU) No 575/2013
Article 428f – paragraph 2 – subparagraph 1

2. Assets and liabilities directly linked to the following products or services shall be considered to meet the conditions of paragraph 1 and be considered a~~s interdependent~~ t both the individual and consolidated levels:

2017/06/23
Committee: ECON

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

Regulation (EU) No 575/2013
Article 428f – paragraph 2 – point c

(c) covered bonds as referred to in Article 52(4) of Directive 2009/65/EC; or that meet the eligibility requirements for the treatment set out in Article 129(4) or (5), and (7) of the Regulation (EU) No 575/2013;

2017/06/23
Committee: ECON

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

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

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:

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114 (new)

Regulation (EU) No 575/2013
Article 428h – paragraph 1 – point a – point va (new)

(va) the counterparty is located within the same Member State or in a different Member Statexxx

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114 Regulation (EU) No 575/2013

(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

2017/06/23
Committee: ECON

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

Regulation (EU) No 575/2013
Article 428h – 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) there are legally binding agreements and commitments between group entities regarding the liability, asset or committed credit or liquidity facility; (b) the funding provider presents a low funding risk profile; (c) the funding risk profile of the 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

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114 (new)

Regulation (EU) No 575/2013
Article 428q – paragraph 1 a (new)

1a. The residual maturity of assets with an undefined contractual end date is the date at which the contract allows the credit institution to withdraw or to request payment.

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114 (new)

Regulation (EU) No 575/2013
Article 428q – paragraph 1 b (new)

1b. Securities contractually hedging a derivative have the maturity of the derivative;

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114 (new)

Regulation (EU) No 575/2013
Article 428q – paragraph 5 a (new)

5a. When calculating the residual maturity of an asset with an early termination where the option to withdraw the money is exercisable at the discretion of both parts, the institution shall consider the asset at the maturity of the date in which the option can be exercised.

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114 (new)

Regulation (EU) No 575/2013
Article 428r – paragraph 1 – point aa (new)

(aa) assets that have a residual maturity of less than six months resulting from secured lending transactions and capital market-driven transactions as defined in Article 192(2) and (3), where those assets are collateralised by assets that qualify as Level 1 assets under Title II of Delegated Regulation (EU) 2015/61, excluding extremely high quality covered bonds referred to in point (f) of Article 10(1) of that Delegated Regulation , and where the institution would be legally entitled and operationally able to reuse those assets for the life of the transaction, regardless of whether the collateral has already been reused. Institutions shall take those assets into account on a net basis where Article 428e(1) of this Regulation applies; (ab) assets that have a residual maturity of less than six months resulting from secured lending transactions and capital market-driven transactions as defined in Article 192(2) and (3) with regulated financial customers, where the institution would be legally entitled and operationally able to reuse those assets for the life of the transaction, regardless of whether the collateral has already been reused. Institutions shall take those assets into account on a net basis where Article 428e(1) of this Regulation applies;

2017/06/23
Committee: ECON

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

Regulation (EU) No 575/2013
Article 428s – point b

(b) assets that have a residual maturity of less than six months resulting from secured lending transactions and capital market-driven transactions as defined in Article 192(2) and (3) with financial customers, where those assets are collateralised by assets that qualify as Level 1 assets under Title II of Delegated Regulation (EU) 2015/61, excluding extremely high quality covered bonds referred to in point (f) of Article 10(1) of that Delegated Regulation , and where the institution would be legally entitled and operationally able to reuse those assets for the life of the transaction, regardless of whether the collateral has already been reused. Institutions shall take those assets into account on a net basis where Article 428e(1) of this Regulation applies;deleted

2017/06/23
Committee: ECON

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

Regulation (EU) No 575/2013
Article 428s – point d

(d) all trade finance off-balance sheet related products as referred to in Article 111(1) of this Regulation ~~with a residual maturity of less than six months~~.

2017/06/23
Committee: ECON

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

Regulation (EU) No 575/2013
Article 428u – paragraph 1 – point d

~~(d) trade finance off-balance sheet related products as referred to in Article 111(1) with a residual maturity of minimum six months and less than one year.~~deleted

2017/06/23
Committee: ECON

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

Regulation (EU) No 575/2013
Article 428w – point b

~~(b) trade finance off-balance sheet related products as referred to in Article 111(1)with a residual maturity of one year or more.~~deleted

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114 (new)

Regulation (EU) No 575/2013
Article 428x – paragraph 3 a (new)

3a. trade finance on-balance sheet related products with a residual maturity of minimum six months and less than one year;

2017/06/23
Committee: ECON

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

Regulation (EU) No 575/2013
Article 428ac – point e

~~(e) trade finance on-balance sheet related products with a residual maturity of minimum six months and less than one year;~~deleted

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114 (new)

Regulation (EU) No 575/2013
Article 428ac – point g a (new)

(ga) those assets referred in Article 428af that have been purchased with the intent of being sold within one year;

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114 (new)

Regulation (EU) No 575/2013
Article 428ae – point b a (new)

(ba) any assets other than those referred to in Articles 428r to 428af, including loans to financial customers having a residual contractual maturity of one year or more when collateralized by Level 1 high quality liquid assets in accordance with Article 10 of Delegated Regulation (EU) 2015/61.

2017/06/23
Committee: ECON

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

Regulation (EU) No 575/2013
Article 428af – point f

(f) unencumbered exchange-traded equities that are not eligible as Level 2B assets in accordance with Article 12 of Delegated Regulation (EU) 2015/61 unless they have been purchased with the intent of being sold within one year;

2017/06/23
Committee: ECON

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

Regulation (EU) No 575/2013
Article 428af – point g

(g) physical traded commodities, including gold but excluding commodity derivatives, unless they have been purchased with the intent of being sold within one year.

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 114 (new)

Regulation (EU) No 575/2013
Article 428af – point g a (new)

(ga) any assets other than those referred to in Articles 428r to 428af, including loans to financial customers having a residual contractual maturity of one year or more when collateralized by Level 2 liquid assets in accordance with Article 10 of Delegated Regulation (EU) 2015/6.

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 119

Regulation (EU) No 575/2013
Article 473a – paragraph 1

1. Until ~~[date of application of this Article + 5 years]~~31 December 2022 institutions that prepare their accounts in conformity with the international accounting standards adopted in accordance with the procedure laid down in Article 6(2) of Regulation (EC) No 1606/2002 may add to their Common Equity Tier 1 capital the amount calculated in accordance with paragraph 2 of this Article multiplied by the applicable factor laid down in paragraph 3.

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 119

(a) 1 in the period from ~~[date of application of this Article] to [ date of application of this Article + 1 year - 1 day]~~1 January 2018 to 31 December 2018;

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 119

Regulation (EU) No 575/2013
Article 473a – paragraph 3 – point b

(b) ~~0,8~~1 in the period from ~~[date of application of this Article + 1 year] to [date of application of this Article + 2 years - 1 day]~~1 January 2019 to 31 December 2019;

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 119

Regulation (EU) No 575/2013
Article 473a – paragraph 3 – point c

(c) 0,68 in the period from ~~[date of application of this Article +2 years] to [date of application of this Article +3 years - 1 day]~~1 January 2020 to 31 December 2020;

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 119

Regulation (EU) No 575/2013
Article 473a – paragraph 3 – point d

(d) 0,46 in the period from ~~[date of application of this Article +3 years] to [date of application of this Article +4 years - 1 day]~~1 January 2021 to 31 December 2021;

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 119

Regulation (EU) No 575/2013
Article 473a – paragraph 3 – point e

(e) 0,24 in the period from ~~[date of application of this Article +4 years] to [date of application of this Article +5 years - 1 day].~~1 January 2022 to 31 December 2022;

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 120 – point b

Regulation (EU) No 575/2013
Article 493 – paragraph 4 – point a

(a) 1200% of the institution’s Tier 1 capital until 31 December 2018;

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 120 – point b

(b) 75150% of the institution’s Tier 1 capital until 31 December 2019;

2017/06/23
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 120 – point b

Regulation (EU) No 575/2013
Article 493 – paragraph 4 – point c

(c) 5100% of the institution’s Tier 1 capital until 31 December 2020.

2017/06/23
Committee: ECON

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

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

(b) the exposure is to an entity or – under specific conditions – to an affiliated holding company which was created specifically to finance or operate physical structures or facilities, systems and networks that provide or support essential public services; the entity can be an affiliated holding company structure if the sources, use and purpose of the loan is adequately fixed by contractual obligations and the cash-flows for repayment are adequately separated and controlled.

2017/06/23
Committee: ECON

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

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

(c) the primary source of repayment of the obligation is the income generated by or associated with the assets being financed (i.e. including concession based business), rather than the independent capacity of a broader commercial enterprise;

2017/06/23
Committee: ECON

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

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

(d) the obligor can meet its financial obligations even under ~~severely~~ stressed ~~condit~~scenarions that are relevant for the risk of the project;

2017/06/23
Committee: ECON

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

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

(i) where the revenues of the obligor are not funded by payments from a large number of users, the revenues are covered by law or the contractual arrangements shall include provisions that effectively protect lenders against losses resulting from the termination of the project by the party which agrees to purchase the goods or services provided by the obligor;

2017/06/23
Committee: ECON

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

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

(ii) the obligor has sufficient reserve funds fully funded in cash or other financial arrangements with ~~high~~adequately rated guarantors to cover the contingency funding and working capital requirements cover ~~lifetime~~ing a substantial tenor of the financing of the assets referred to in point b) of this paragraph. The guarantor should have an ECAI rating with a credit quality step of at least 3, or a corresponding internal rating, at the time of the financing. A credit quality step of 4 should be allowed when tariffs are fixed by law;

2017/06/23
Committee: ECON

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

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

(iii) the lenders have a substantial degree of control over the assets and the income generated by the obligor to be ensured by adequate contractual covenants;

2017/06/23
Committee: ECON

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

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

(v) equity is pledged to lenders ~~such that they are able~~or other measures (e.g. step-in rights) are agreed in order to ensure ability to take control of the entity upon default;

2017/06/23
Committee: ECON

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

Regulation (EU) No 575/2013
Article 507

(128) Article 507 is ~~replaced by the following:~~deleted.

2017/06/23
Committee: ECON

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

Regulation (EU) No 575/2013
Article 507

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) the number of large exposures exempted in each Member State; (b) the number of institutions that make use of the exemption in each Member State; (c) the aggregate amount of exposures exempted in each Member State.;deleted

2017/06/23
Committee: ECON

Proposal for a regulation
Article 3 – paragraph 2 – subparagraph 1 – point b a (new) Regulation (EU) No 575/2013

(ba) the provisions in point (126) concerning amendments to Article 501 to include an adjustment to SME exposures, which shall apply from the date of entry into force of this Regulation.

2017/06/23
Committee: ECON

Proposal for a regulation
Article 3 – paragraph 2 – subparagraph 1 – point b b (new) Regulation (EU) No 575/2013

(bb) the provisions on the introduction of an adjustment to capital requirements for credit risk for exposures to entities that operate or finance physical structures or facilities, systems and networks that provide or support essential public services pursuant to Article 501a, which shall apply from the date of entry into force of this Regulation.

2017/06/23
Committee: ECON