[ParlTrack]

Proposal for a regulation
Title 1

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 806/2014 in order to establish a European Deposit Insurance Scheme and amending Directive 2014/49/EU

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Title 1

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 806/2014 in order to establish a European ~~Deposit Insurance Scheme~~Liquidity Assistance Scheme (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 5

(5) In June 2015, the Five Presidents Report on Completing Europe’s Economic and Monetary Union pointed out that a single banking system can only be truly single if confidence in the safety of bank deposits is the same irrespective of the Member State in which a bank operates. This requires single bank supervision, single bank resolution and single deposit insurance. The Five Presidents report therefore proposed to complete the Banking Union by establishing a European Deposit Insurance Scheme (EDIS), the third pillar of a fully-fledged Banking Union alongside bank supervision and resolution. Concrete steps in that direction should already be taken as a priority, with a re-insurance system at the European level for the national deposit guarantee schemes as a first step towards a fully mutualised approach. The scope of this reinsurance system should coincide with that of the SSMhigh level of deposit protection across the Union.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 7

(7) The perceived absence of a homogenous level of depositor protection can distort competition and create an effective barrier for the freedoms of establishment and free provision of services by credit institutions within the internal market. A common ~~deposit insurance scheme is~~high level of depositor protection as agreed in the DGSD combined with a liquidity assistance regime are therefore essential for the completion of the internal market in financial services.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 8

(8) Although Directive 2014/49/EU significantly improves the capacity of national schemes to compensate depositors, more efficient deposit guarantee arrangements are needed at the level of the Banking Union to ensure sufficient financial means to underpin the confidence of all depositors and thereby safeguard financial stability. EDIS would increase the resilience of the Banking Union againstfuture crises by sharing risk more widely and would offer equal protection for insured depositors, supporting the proper functioning of the internal market.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 10

(10) Despite the further harmonisation introduced by the Directive 2014/49/EU, national DGSs retain certain options and discretions, including with respect to certain essential elements like target levels, risk factors to be applied when assessing credit institutions’ contributions, repayment periods or the use of funds. Those differences between national rules may obstruct the free provision of services and create distortions of competition. In a highly integrated banking sector, uniformity of rules and approaches is needed to ensure a consistently robust level of protection of depositors throughout the Union and so guarantee the objective of financial stability in order to take into account national specificities.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 11

(11) The establishment of a~~n EDIS~~ liquidity assistance scheme, with decision-making, monitoring and enforcement powers centralised and entrusted to the Single Resolution and Deposit Insurance Board ("the Board"), will be essential in achieving the objective of a harmonised deposit guarantee framework. The uniform application of the deposit guarantee requirements in the participating Member States will be enhanced as a result of it being entrusted to such a central authority. In this way, the operation of EDIS should facilitate, by supporting and providing a framework for the establishment and subsequent implementation of uniform rules on deposit guarantee arrangements, the harmonisation process in the field of financial servicesmore effective deposit guarantee framework.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 12

(12) Furthermore, EDIS is part of the wider EU rules harmonising prudential supervision and recovery and resolution, which are complementary aspects of the internal market for banking services. Supervision can only be effective and meaningful if an adequate deposit insurance scheme, corresponding to the developments in the field of supervision, is created. EDIS is therefore instrumental to a wider process of harmonisation and its objectives are closely linked to the Union framework on prudential supervision and recovery and resolution whose centralised application are mutually dependant. For instance, adequate coordination at the level of supervision and deposit guarantee is needed in cases where the European Central Bank (ECB) envisages withdrawing an authorisation to a credit institution or where a credit institution does not comply with the obligation to be a member of a DGS. A similar high level of integration is needed between the resolution actions and the deposit insurance tasks attributed to the Board.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 13

(13) This Regulation applies only in respect of banks whose home supervisor is the ECB or the national competent authority in Member States whose currency is the euro or in Member States whose currency is not the euro which have established a close cooperation in accordance with Article 7 of Regulation (EU) No 1024/2013. The scope of application of this Regulation is linked to the scope of application ofRegulation (EU) No 1024/2013. Indeed, bearing in mind the significant level to which the supervisory tasks attributed to the SSM and deposit guarantee actions are interwoven, the establishment of a centralised system of supervision operated under Article 127(6) of the Treaty on the Functioning of the European Union is fundamentally important to the process of harmonisation of deposit guarantee in participating Member States. The fact of being subject to supervision by the SSM constitutes a specific attribute that places the entities falling within the scope of application of, with the exception of institutions that are part of an institutional protection scheme as defined in Regulation (EU) No ~~1024~~575/2013 in an objectively and characterised distinct position for deposit guarantee purposes. It is necessary to adopt measures to create a single deposit insurance scheme for all Member States participating in the SSM in order to facilitate the proper and stable functioning of the internal market.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 13 a (new)

(13a) Institutional protection schemes have been granted a preferential regulatory treatment in Regulation (EU) No 575/2013 [CRR] due to their special characteristics and their contribution to financial stability. As institutional protection schemes are unlikely to benefit from an European Liquidity Assistance Scheme and to in order to remain coherent with the provisions in CRR, institutional protection schemes should be excluded from the scope of this Regulation.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 14

(14) In order to ensure parallelism with the SSM and the SRM, ~~EDIS~~ the European Liquidity Assistance Schemeshould apply to participating Member States. Banks established in the Member States not participating in the SSM should not be subject to ~~EDIS~~the European Liquidity Assistance Scheme. As long as supervision in a Member State remains outside the SSM, that Member State should remain responsible for ensuring the protection of depositors against the consequences of the insolvency of a credit institution. As Member States join the SSM, they should also automatically become subject to the E~~DIS. Ultimately, the EDIS~~uropean Liquidity Assistance Scheme. Ultimately, the European Liquidity Assistance Scheme could potentially extend to the entire internal market.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 15

(15) In order to ensure a level playing field within the internal market as a whole, this Regulation is consistent with Directive 2014/49/EU. It complements the rules and principles of that Directive to ensure the proper functioning of ~~EDIS~~ the European Liquidity Assistance Schemeand that appropriate funding is available to the latter. The material law on deposit guarantee to be applied within the E~~DIS framework~~uropean Liquidity Assistance Scheme will therefore be consistent with the one applicable by the national DGSs or designated authorities of the non- participating Member States, harmonised through the Directive 2014/49/EU.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 16

(16) In integrated financial markets, any financial support to reimburse depositors enhances the financial stability not only in the participating Member State concerned but also in other Member States, by preventing any spill-over of bank crises into non-participating Member States. The conferral of ~~deposit insur~~liquidity assistance tasks to the Board should not in any way hamper the functioning of the internal market for financial services. The European Banking Authority (EBA) should therefore maintain its role and retain its existing powers and tasks: it should develop and contribute to the consistent application of the Union legislation applicable to all Member States and enhance convergence of deposit guarantee practices across the Union as a whole.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 17

(17) EDIS should progressively evolve from a reinsurance scheme into a fully mutualised co-insurance scheme over a number of years. In the context of efforts to deepen the EMU, together with the work on the establishment of bridge- financing arrangements for the Single Resolution Fund (SRF) and on developing a common fiscal backstop, this step is necessary to reduce the bank/sovereign links in individual Member States by means of steps towards risk sharing among all the Member States in the Banking Union, and thereby to reinforce the Banking Union in achieving its key objective. However, such risk sharing implied by steps to reinforce Banking Union must proceed in parallel with risk reducing measures designed to break the bank-sovereign link more directly.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 18

(18) EDIS should be established in three sequential stages, first a reinsurance scheme that covers a share of the liquidity shortfall and of the excess losses of participating DGSs, followed by a co- insurance scheme that covers a gradually increasing share of the liquidity shortfall and losses of participating DGSs and eventually resulting in a full insurance scheme that covers all liquidity needs and losses of participating deposit guarantee schemes.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 19 a (new)

(19a) In order to further limit the risk of moral hazard, further steps towards risk reduction in the Banking Union should be a prerequisite for the entry into force of this Regulation. For that purpose, a comprehensive asset quality review should be conducted and the NPL package, including the Directive on accelerated extrajudicial collateral enforcement mechanism (AECE), should be fully implemented.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 20

(20) As the Deposit Insurance Fund, in the re-insurance stage, would only provide an additional source of funding and would only weaken the link between banks and their national sovereign, without however ensuring that all depositors in the Banking Union enjoy an equal level of protection, the reinsurance stage should, after three years, gradually progress into a co-insurance scheme and ultimately into a fully mutualised deposit insurance scheme.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 21

(21) While the reinsurance and coinsurance stages would share many common features, ensuring a smooth gradual evolution, pay-outs under the co- insurance stage would be shared between national DGS and the Deposit Insurance Fund as of the first euro of loss. The relative contribution from the Deposit Insurance Fund would gradually increase to 100 percent, resulting in the full mutualisation of depositor risk across the Banking Union after four years.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 22

(22) Safeguards should be built into ~~EDIS~~ the European Liquidity Assistance Schemeso as to limit moral hazard risk and to ensure that the coverage by ~~EDIS~~ the European Liquidity Assistance Schemeis only provided where nationals DGSs act in a prudent manner. Firstly, national DGSs should comply with their obligations under this Regulation, the Directive 2014/49/EU and other relevant EU law, in particular their obligation to build up their funds in accordance with Article 10 of Directive 2014/49/EU as further specified in this Regulation. In order to benefit from coverage by EDIS, participating DGSs need to raise ex-ante contributions in accordance with a precise funding path. This also implies that the possibility of a target level reduction in accordance with Article 10(6) of Directive 2014/49/EU is no longer available if the DGS wants to benefit from EDIS. Secondly, in case of a pay-out event or where its funds are used in resolution, a national DGS should bear a fair share of the loss themselves. It should therefore be required to collect ex- post contributions from its members to replenish its fund and to repay EDIS to the extent that the initially received funding exceeds the share of loss to be borne by EDIS. Thirdly, following a pay- out event, the national DGS should maximise the proceeds from the insolvency estate and repay the Board and the Board should have sufficient powers to safeguards its rights. Fourthly, the Board should have the powers to recover all or part of funding in case of a participating DGS did not comply with key obligations.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 27

(27) In principle, contributions should be collected from the industry prior to, and independently of, any deposit insurance action. When prior funding is insufficient to cover the losses or costs incurred by the use of the Deposit Insurance Fund, additional contributions should be collected to bear the additional cost or loss. Moreover, the Deposit Insurance Fund should be able liquidity assistance action. Contributions to the Deposit Insurance Fund should be calculated on a risk-based methodology developed by the European Banking Authority. The methodology should take into account~~ract borrowings or other forms of support from credit institutions, financial~~, among other things, the institution's or other third parties in the event that the ex-ante and ex post contributions are not immediately accessible or do not cover the expenses incurred by the use of the Deposit Insurance Fund in relation to deposit insurance actioexposure to government debt as well as its asset quality, including the level of impaired or non-performing loans.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 29

(29) The initial and final target level of the Deposit Insurance Fund should be established as a percentage of the total minimum target levels of participating DGS. It should progressively reach 20% of four ninth of the total minimum target levels by the end of the reinsurance period and the sum of all minimum target levels by the end of the co-insurance period. The possibility to apply for approval to authorise a lower target level in accordance withone eighth ofthe target level referred to in Article 10(62) of Directive 2014/49/EU should not be considered when setting the initial or final target levels of the Deposit Insurance Fund. An appropriate time frame should be set to reach the target level for the Deposit Insurance Fund2014/49/EU.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 31

(31) It is necessary to ensure that the Deposit Insurance Fund is fully available for the purpose of ensuring the guarantee of deposits. Therefore, the Deposit Insurance Fund should primarily be used for the efficient implementation of deposit guarantee requirements and actions. Furthermore, it should be used only in accordance with the applicable deposit guarantee objectives and principles. Under certain conditions, the Deposit Insurance Fund could also provide funding where the available financial means of a DGS are used in resolution in accordance with Article 79 of this Regulationgranting liquidity assistance.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 35

~~(35) The Board, where all the criteria relating to the use of the Deposit Insurance Fund are met, should provide the relevant funding and loss cover to the national DGS.~~deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 37

(37) The efficiency and uniformity of deposit insurance actions should be ensured in all of the participating Member States. For that purpose, where a participating DGS has not applied or has not complied with a decision by the Board pursuant to this Regulation or has applied it in a way which poses a threat to any of the deposit insurance scheme's objectives or to the efficient implementation of the ~~deposit insur~~liquidity assistance action, the Board should be empowered to order any necessary action which significantly addresses the concern or threat to the E~~DIS~~uropean Liquidity Assistance Scheme's objectives. Any action by a participating DGS that would restrain or affect the exercise of powers or functions of the Board should be excluded.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 45

(45) The Commission should review the application of this Regulation in order to assess its impact on the internal market and to determine whether any modifications or further developments are needed in order to improve the efficiency ~~and~~, the effectiveness ~~of the EDIS~~, the risk-based nature and the proportionalityof the European Liquidity Assistance Scheme.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 45 a (new)

(45a) If a DGS has received liquidity assistance by either the DIF or via mandatory lending of other participating DGS, this liquidity support should be paid back in accordance with a clear payment schedule and as a matter of priority for the DGS that has received the liquidity support. Reimbursing the liquidity support within the agreed timeframe should take priority over all other commitments.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 47

(47) Regulation (EU) No 806/2014 should be amended to incorporate and respectively take into account the establishment of ~~EDIS,~~the European Liquidity Assistance Scheme.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 47 a (new)

(47a) Introducing a new European Liquidity Support Mechanism might put an additional strain on existing national deposit guarantee schemes. Therefore, fulfilling the minimum target level of 0.8% of covered deposits becomes even more important. Currently, Directive 2014/49/EU contains a derogation possibility that allows Member States to authorise a lower minimum target level of 0.5% if certain conditions are fulfilled and the Commission approves of the request. In the light of potentially higher demands on national DGS and to further harmonise the minimum deposit protection level across the Union, that derogation possibility should be discontinued.

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Title

REGULATION (EU) No 806/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 15 July 2014 on a Single Resolution Mechanism and a European ~~Deposit Insur~~Liquidity Assistance Scheme and amending Regulation (EU) No 1093/2010; (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) No 806/2014
Article 1 – paragraph 2 – subparagraph 1 – introductory part

2. In addition, this Regulation establishes a European ~~Deposit Insurance Scheme ('EDIS') in three successive stages:~~Liquidity Assistance Scheme, that provides liquidity support to participating deposit guarantee schemes in accordance with Article 41a.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) No 806/2014
Article 1 – paragraph 2 – subparagraph 1 – indent 1

~~– a reinsurance scheme that, to a certain extent, provides funding and covers a share of the losses of participating deposit guarantee schemes in accordance with Article 41a;~~deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) No 806/2014
Article 1 – paragraph 2 – subparagraph 1 – indent 2

~~– a co-insurance scheme that, to a gradually increasing extent, provides funding and covers losses of participating deposit guarantee schemes in accordance with Article 41c;~~deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) No 806/2014
Article 1 – paragraph 2 – subparagraph 1 – indent 3

~~a full insurance scheme that provides the funding and covers the losses of participating deposit guarantee schemes in accordance with Article 41e.~~deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) No 806/2014
Article 1 – paragraph 2 – subparagraph 2

EDIS shall be administered by the Board in cooperation with participating DGSs and designated authorities in accordance with Part IIa. EDIS shall be supported by a Deposit Insurance Fund (the ‘DIF’).deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 3

Regulation (EU) No 806/2014
Article 2 – paragraph 1 – point a

(a) credit institutions established in a participating Member State, unless they are institutions that are members of an institutional protection scheme as referred to in Article 113(7) of Regulation No 575/2013 [CRR];

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 3

Regulation (EU) No 806/2014
Article 2 – paragraph 2 – subparagraph 1 – introductory part

2. For the purposes of ~~EDIS~~the European Liquidity Assistance Scheme, this Regulation shall apply to the following entities:

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 3

Regulation (EU) No 806/2014
Article 2 – paragraph 2 – subparagraph 1 – point a

(a) participating deposit-guarantee schemes as defined in point (1) of Article 3(1a) unless they are institutions that are members of an institutional protection scheme as referred to in Article 113(7) of Regulation No 575/2013 [CRR];

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 5

(5) In June 2015, the Five Presidents Report on Completing Europe’s Economic and Monetary Union pointed out that a single banking system can only be truly single if confidence in the safety of bank deposits is the same irrespective of the Member State in which a bank operates. This requires single bank supervision, single bank resolution and single deposit insurance. The Five Presidents report therefore proposed to complete the Banking Union by establishing a European Deposit Insurance Scheme (EDIS), the third pillar of a fully-fledged Banking Union alongside bank supervision and resolution. Concrete steps in that direction should already be taken as a priority, withConcrete steps should already be taken as a priority, which lead to the establishment of a re-insurance system at the European level ~~for the national deposit guarantee schemes as a first step towards a fully mutualised approach~~. The scope of this reinsurance system should coincide with that of the SSM.

2016/12/20
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 4 –point a

Regulation (EU) No 806/2014
Article 3 – paragraph 1 – point 55

(55) 'participating deposit-guarantee schemes' or 'participating DGSs' means deposit guarantee schemes as defined in points (1a) and (b)of Article ~~2(1)~~1(2) of Directive 2014/49/EU which are introduced and officially recognised in a participating Member State. IPS as defined in point (c) of Article 1(2) of Directive 2014/49/EU are thereby explicitly excluded from the European Liquidity Assistance Scheme. Their funds are not subject to any vertical or horizontal transfer or lending obligations and can be used, without impairment to their autonomous decision-making authority in line with their mandate.;

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 5

Regulation (EU) No 806/2014
Article 4 – paragraph 3 – subparagraph 4 – point a

(a) the amount of all ~~ex-ante contributions paid to the DIF by credit institutions affiliated tothe DGS concerned~~transfer paid to the DIF by the participating DGS;

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 5

Regulation (EU) No 806/2014
Article 4 – paragraph 3 – subparagraph 5 – point b

(b) the amount of all ~~ex-ante contribution~~transfers paid to the DIF. The transferred amount shall not exceed the amount that is necessary for the available financial means of the participating DGS concerned to reach two- thirds of its target level as defined in Article 10(2) first subparagraph of Directive 2014/49/EU.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 9 –point c

Regulation (EU) No 806/2014
Article 19 – paragraph 5 – subparagraph 2

The Board shall pay any amounts received under the first subparagraph into the respective Fund (SRF or DIF) and take such amounts into consideration when determining contributions in accordance with Articles 70 and 71, and transfers in accordance with 74c and 74d.;

2024/03/13
Committee: ECON

Markus FERBER

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

PART IIa EUROPEAN ~~DEPOSIT INSUR~~LIQUIDITY ASSISTANCE SCHEME ~~(EDIS)~~

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Title I

~~TITLE I: STAGES OF EDIS~~deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Title I – Chapter I

~~Chapter 1 Reinsurance~~deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 a –title

Article 41a ~~Partial funding and excess loss cover~~Liquidity Support

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 a – paragraph 1

1. As from the date of application set out in Article 99(5a), ~~participating DGSs are reinsured by EDIS in accordance with this Chapter for a period of three years (‘reinsurance period’)~~the DIF shall be used to provide liquidity support to participating DGSs in accordance with this Chapter.

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 a – paragraph 2

2. In case a participating DGS encounters a payout event or is used in resolution in accordance with Article 79 of this Regulation, it may ~~claim funding~~request a loan from the DIF of ~~up to 20%of~~ its liquidity shortfall as set out in Article 41b.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 7

(7) The absence of a homogenous level of depositor protection can distort competition and create an effective barrier for the freedoms of establishment and free provision of services by credit institutions within the internal market. A common deposit reinsurance scheme is therefore essential for the completion of the internal market in financial services.

2016/12/20
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 a – paragraph 3

3. The DIF shall also cover 20% of the excess loss of the participating DGS as set out in Article 41c. The participating DGS shall repay the amount of funding it obtained under paragraph 2 of this Article, less the amount of excess loss cover, in accordance with the procedure set out in Article 41o.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 8

(8) Although Directive 2014/49/EU significantly improves the capacity of national schemes to compensate depositors, more efficient deposit guarantee arrangements are needed at the level of the Banking Union to ensure sufficient financial means to underpin the confidence of all depositors and thereby safeguard financial stability. ~~EDIS~~A European deposit reinsurance scheme would increase the resilience of the Banking Union against future crises ~~by sharing risk more widely and would offer equal protection for insured depositors~~, supporting the proper functioning of the internal market.

2016/12/20
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 a – paragraph 4

4. ~~Neither the funding nor the excess loss cover~~The outstanding cumulative funding provided by the DIF to a participating DGS shall not exceed the lower of 210%of the ~~initial~~target ~~level~~sizeof the DIF a~~s set out in Article 74b(1) of this Regulation and 10~~ nd 5times the target level of the participating DGS as defined in the first subparagraph of Article 10(2) of Directive 2014/49/EU.

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 b – paragraph 1 – introductory part

1. In case the participating DGS encounters a payout event, its liquidity shortfall shall be calculated as the total amount of covered deposits held by the credit institution referred to under 2(2), point b, andwithin the meaning of Article 6(1) ~~of the~~and 6(2)of Directive 2014/49/EU ~~that is held by the credit institution at the time of the payout event less:~~at the time of the payout event less the amount of available financial means the participating DGS should have at the time of the payout event in accordance with Articles 10(2) and 10(3) of that Directive.

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 b – paragraph 2

2. In case the participating DGS is used in resolution proceedings, its liquidity shortfall shall be calculated as the amount determined by the resolution authority in accordance with Article 79 less the amount of available financial means the participating DGS should have at the time of the determination i~~f it had raised ex-ante contributions in accordance with Article 41j~~n accordance with Articles 10(2) and (3) of Directive 2014/49/EU.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 11

(11) The establishment of a~~n EDIS~~ European deposit reinsurance scheme, with decision-making, monitoring and enforcement powers centralised and entrusted to the Single Resolution and Deposit Insurance Board ("the Board"), will be essential in achieving the objective of a harmonised ~~deposit guarantee framework~~European deposit reinsurance scheme. The uniform application of the deposit guarantee requirements in the participating Member States will be enhanced as a result of it being entrusted to such a central authority. In this way, the operation of ~~EDIS~~the European deposit reinsurance scheme should facilitate, by supporting and providing a framework for the establishment and subsequent implementation of uniform rules on deposit guarantee arrangements, the harmonisation process in the field of financial services.

2016/12/20
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 b a (new)

Article 41ba Provision of mandatory lending by DGSs 1. In cases where the available financial means of the DIF are not sufficient to provide the loan requested by a participating DGS in accordance to Article 41a, the Board may decide to borrow from the other participating DGSs. 2. Each participating DGS shall provide the requested loans to the DIF (mandatory lending) 3. The SRB shall calculate the amount of mandatory lending needed toprovide funding in accordance to Article 41a. The SRB shall calculate the amount of mandatory lending to be claimed from each participating DGS in proportion to the ratio between the DIF’s target level and the target level of each DGS as determined in accordance with Article 10(2) of Directive 2014/49/EU. 4. After completion of the build-up phase of the DIF in accordance with Article 74d, the amount to be provided by each participating DGS as mandatory lending shall not exceed 12.5% of the target level of that DGS. 5. In order to obtain the funding through mandatory lending the SRB shall follow the procedure laid down in Article 41q.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 12

(12) Furthermore, ~~EDIS~~the European deposit reinsurance scheme is part of the wider EU rules harmonising prudential supervision and recovery and resolution, which are complementary aspects of the internal market for banking services. Supervision can only be effective and meaningful if an adequate deposit reinsurance scheme, corresponding to the developments in the field of supervision, is created. ~~EDIS~~The European deposit reinsurance scheme is therefore instrumental to a wider process of harmonisation and its objectives are closely linked to the Union framework on prudential supervision and recovery and resolution whose centralised application are mutually dependant. - For instance, adequate coordination at the level of supervision and deposit guarantee is needed in cases where the European Central Bank (ECB) envisages withdrawing an authorisation to a credit institution or where a credit institution does not comply with the obligation to be a member of a DGS. A similar high level of integration is needed between the resolution actions and the deposit reinsurance tasks attributed to the Board.

2016/12/20
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 c –title

~~Article 41c Excess loss~~deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 c – paragraph 1

1. In case the participating DGS encounters a payout event, its excess loss shall be calculated as the total amount it repaid to depositors in accordance with Article 8 of Directive 2014/49/EU less: (a) the amount the participating DGS recovered from subrogating to the rights of depositors in winding up or reorganisation proceedings under the first sentence of Article 9(2) of Directive 2014/49/EU; (b) the amount of available financial means the participating DGS should have at the time of the payout event if it had raised ex-ante contributions in accordance with Article 41j; (c) the amount of ex-post contributions the participating DGS may raise in accordance with the first sentence of the first subparagraph of Article 10(8) of Directive 2014/49/EU within one calendar year, which shall contain the amount raised in accordance with point (b) of Article 41b(1) of this Regulation.deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 c – paragraph 2

2. In case the funds of the participating DGS are used in resolution proceedings, its excess loss shall be the amount determined by the resolution authority in accordance with Article 79 less: (a) the amount of any difference the participating DGS was paid in accordance with Article 75 of Directive 2014/59/EU; (b) the amount of available financial means the participating DGS should have at the time of the determination if it had raised ex-ante contributions in accordance with Article 41j.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 14

(14) In order to ensure parallelism with the SSM and the SRM, ~~EDIS~~the European deposit reinsurance scheme should apply to participating Member States. Banks established in the Member States not participating in the SSM should not be subject to ~~EDIS~~the European deposit reinsurance scheme. As long as supervision in a Member State remains outside the SSM, that Member State should remain responsible for ensuring the protection of depositors against the consequences of the insolvency of a credit institution. As Member States join the SSM, they should also automatically become subject to the E~~DIS. Ultimately, the EDIS~~uropean deposit reinsurance scheme. Ultimately, the European deposit reinsurance scheme could potentially extend to the entire internal market.

2016/12/20
Committee: ECON

Markus FERBER

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

~~Chapter 2 Co-insurance~~deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 d –title

~~Article 41d Funding and loss cover~~deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 d – paragraph 1

~~1. As from the end of the re- insurance period, the participating DGS shall be co-insured by EDIS in accordance with this Chapter for a period of four years (‘co-insurance period’).~~deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 d – paragraph 2

2. In case a participating DGS encounters a payout event or is used in resolution in accordance with Article 109 of Directive 2014/59/EU or Article 79 of this Regulation, it may claim funding from the DIF of a share of its liquidity need as defined in Article 41f of this Regulation. The share shall increase in accordance with Article 41e.deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 d – paragraph 3

3. The DIF shall also cover a share of the loss of the participating DGS as defined by Article 41g. The share shall increase in accordance with Article 41e. The participating DGS shall repay the amount of funding it obtained under paragraph 2, less the amount of loss cover, in accordance with the procedure set out in Article 41o.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 15

(15) In order to ensure a level playing field within the internal market as a whole, this Regulation is consistent with Directive 2014/49/EU. It complements the rules and principles of that Directive to ensure the proper functioning of ~~EDIS~~the European deposit reinsurance scheme and that appropriate funding is available to the latter. The material law on deposit guarantee to be applied within the E~~DIS~~uropean deposit reinsurance scheme framework will therefore be consistent with the one applicable by the national DGSs or designated authorities of the non- participating Member States, harmonised through the Directive 2014/49/EU.

2016/12/20
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41e –title

~~Article 41e Increase of funding and loss cover~~deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 e – paragraph 1

The share of coverage under the second and third paragraph of Article 41d shall increase during the co-insurance period as follows: - in the first year of the co- insurance period it shall be 20%; - in the second year of the co- insurance period it shall 40%; - in the third year of the co- insurance period it shall be 60%; - in the fourth year of the co- insurance period it shall be 80%.deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 f – title

~~Article 41f Liquidity ne~~deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 17

(17) EDIS should progressively evolve from a reinsurance scheme into a fully mutualised co-insurance scheme over a number of years. In the context of efforts to deepen the EMU, together with the work on the establishment of bridge- financing arrangements for the Single Resolution Fund (SRF) and on developing a common fiscal backstop, this step is necessary to reduce the bank/sovereign links in individual Member States by means of steps towards risk sharing among all the Member States in the Banking Union, and thereby to reinforce the Banking Union in achieving its key objective. However, such risk sharing implied by steps to reinforce Banking Union must proceed in parallel with risk reducing measures designed to break the bank-sovereign link more directlyThe European deposit reinsurance scheme should progressively evolve over a number of years, provided the necessary risk reduction preconditions are fulfilled.

2016/12/20
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 f – paragraph 1

1. In case the participating DGS encounters a payout event, its liquidity need shall be deemed to be the total amount of covered deposits within the meaning of Article 6(1) of Directive 2014/49/EU that is held in the credit institution at the time of the payout event.deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 f – paragraph 2

2. In case the participating DGS is used in resolution proceedings, its liquidity need shall be the amount determined by the resolution authority in accordance with Article 109 of Directive 2014/59/EU or Article 79 of this Regulation.deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 g –title

~~Article 41g Loss~~deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 g – paragraph 1

1. In case the participating DGS encounters a payout event, its loss shall be the total amount it repaid to depositors in accordance with Article 8 of Directive 2014/49/EU less the amount the participating DGS recovered from subrogating to the rights of depositors in winding up or reorganisation proceedings under the first sentence of Article 9(2) of the Directive 2014/49/EU.deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 g – paragraph 2

2. In case the participating DGS is used in resolution proceedings, its loss shall be the amount determined by the resolution authority in accordance with Article 109 of Directive 2014/59/EU or Article 79 of this Regulation less the amount of any difference the participating DGS was paid in accordance with Article 75 of Directive 2014/59/EU.deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Part II a –title I – chapter 3 –title

~~Chapter 3 Full insurance~~deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 h – title

~~Article 41h Funding and loss cover~~deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 h – paragraph 1

~~1. As from the end of the co- insurance period, the participating DGS shall be fully insured by EDIS in accordance with this Chapter.~~deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 h – paragraph 2

2. In case a participating DGS encounters a payout event or is used in resolution in accordance with Article 109 of Directive 2014/59/EU or Article 79 of this Regulation, it may claim funding from the DIF for its liquidity need as defined by Article 41f of this Regulation.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 18

(18) EDIS should be established in three sequential stages, first a reinsurance scheme that covers a share of the liquidity shortfall and of the excess losses of participating DGSs, followed by a co- insurance scheme that covers a gradually increasing share of the liquidity shortfall and losses of participating DGSs and eventually resulting in a full insurance scheme that covers all liquidity needs and losses of participating deposit guarantee schemes.deleted

2016/12/20
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 h – paragraph 3

3. The DIF shall also cover the loss of the participating DGS as defined by Article 41g. The participating DGS shall repay the amount of funding it obtained under paragraph 2, less the amount of loss cover, in accordance with the procedure set out in Article 41o.deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Part II a –title I – chapter 4 –title

~~Chapter 4 Common provisions~~deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 i – title

~~Article 41i Disqualification from coverage by EDIS~~deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 i – paragraph 1

1. A participating DGS shall not be covered by EDIS in the reinsurance, co- insurance or full insurance phase, if the Commission, acting on its own initiative or upon a request of the Board or a participating Member State, decides and informs the Board accordingly that at least one of the following disqualifying conditions is met: (a) the participating DGS has failed to comply with the obligations under this Regulation or Articles 4, 6, 7 or 10 of Directive 2014/49/EU; (b) the participating DGS, the relevant administrative authority within the meaning of Article 3 of Directive 2014/49/EU, or any other relevant authority of the respective Member State have, in relation to a particular request for coverage by EDIS, acted in a way that runs counter to the principle of sincere cooperation as laid down in Article 4(3) of the Treaty on European Union.deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 i – paragraph 2

2. When funding has already been obtained by a participating DGS and at least one of the disqualifying conditions referred to in paragraph 1 is met in relation to a payout event or a use in resolution, the Commission may order full or partial repayment of the funding to the DIF.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 19

(19) ~~In the reinsurance stage, and in order to limit the liability for the European Deposit Insurance Fund (“the Deposit Insurance Fund”) and to reduce moral hazard risk at the national level, a~~Assistance from the Ddeposit Ireinsurance Ffund can only be requested if the participating national DGS has raised ex-ante contributions in accordance with a precise funding path, and if it first depletes these funds. However, to the extent that a national DGS has collected funds over and above that which is required by the funding path, it only needs to use up the funds it had to collect to comply with the funding path before being able to receive coverage by EDIS. Therefore, DGSs which have collected more funds than is needed to comply with the funding path should not be in a worse position than those which have collected funds not exceeding the levels set out in the funding path.

2016/12/20
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 j – title

~~Article 41j Funding path to be followed by participating DGSs~~deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 j – paragraph 1

1. A participating DGS shall only be reinsured, co-insured or fully insured by EDIS during the year following any of the dates set out below, if, by that date, its available financial means raised by contributions referred to in Article 10(1) of Directive 2014/49/EU amount to at least the following percentages of the total amount of covered deposits of all credit institutions affiliated to the participating DGS: - by 3 July 2017: 0.14%; - by 3 July 2018: 0.21%; - by 3 July 2019: 0.28%; - by 3 July 2020: 0.28%; - by 3 July 2021: 0.26%; - by 3 July 2022: 0.20%; - by 3 July 2023: 0.11%; - by 3 July 2024: 0%.deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 j – paragraph 2

2. The Commission, after consulting the Board, may approve a derogation from the requirements set out in paragraph 1 for duly justified reasons linked to the business cycle in the respective Member State, the impact pro- cyclical contributions may have, or to a payout event which occurred at national level. Those derogations must be temporary and may be subject to the fulfilment of certain conditions.deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 k – paragraph 1

Where a participating DGS has been informed by the competent authority about, or has otherwise become aware of, circumstances relating to a credit institution affiliated to that participating DGS that are likely to result in a payout event or its use in resolution proceedings, it shall inform the Board about such circumstances without delay if it intends to request coverage by ~~EDIS~~the European Liquidity Assistance Scheme. In this case the participating DGS shall also provide the Board with an estimate of the expected liquidity shortfall ~~or liquidity need.~~

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 20

(20) As the Deposit Insurance Fund, in the re-insurance stage, would only provide an additional source of funding and would only weaken the link between banks and their national sovereign, without however ensuring that all depositors in the Banking Union enjoy an equal level of protection, the reinsurance stage should, after three years, gradually progress into a co-insurance scheme and ultimately into a fully mutualised deposit insurance scheme.deleted

2016/12/20
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 l – paragraph 1

1. In case a participating DGS encounters a payout event or is to be used in resolution in accordance with Article ~~109 of Directive 2014/59/EU or Article~~ 79 of this Regulation, it shall immediately notify the Board and submit all necessary information in order to allow the Board to assess whether the conditions for the provision of ~~funding and loss cover~~liquidity support in accordance with Article 41a~~, 41d and 41h~~ of this Regulation are met.

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 l – paragraph 2 – point c

~~(c) in case of a payout event, an estimate of the extraordinary contributions it can raise within three days from that event;~~deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 m – paragraph 1

1. After receiving the notification under Article 41k, the Board shall decide within 24 hours, in its executive session, that the conditions for coverage by ~~EDIS~~the European Liquidity Assistance Scheme have been met and shall determine the amount of ~~funding~~liquidity support that it will provide to the participating DGS. The Board shall also determine the amount of mandatory lending pursuant to Article 41ba.

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 m – paragraph 2

2. In case the Board was informed in accordance with Article 41k, prior to, or simultaneously with, the notification referred to in paragraph 1, about one or more other likely payout events or uses in resolution, it may extend the period of paragraph 1 up to seven days. If, during this extended period, additional payout events or uses in resolution are notified in accordance with Article 41k and the total funding that could be claimed from the DIF might exceed its available financial means, the funding provided for each notified payout event or use in resolution shall be equal to the available financial means of the DIF multiplied by the ratio of (a) to (b): (a) the amount of funding that the relevant participating DGS could claim from the DIF for the payout event or use in resolution if there were no other notified payout event or use in resolution; (b) the sum of all amounts of funding that each relevant participating DGS could claim from the DIF for each payout event or use in resolution if there were no other notified payout event or use in resolution.deleted

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 m– paragraph 3

3. The Board shall immediately inform the participating DGS about its decision under paragraphs 1 ~~and 2~~. The participating DGS may request a review of the Board’s decision within 24 hours after it has been informed. It shall state the reasons why it considers an amendment to the Board’s decision necessary, in particular with respect to the extent of coverage by ~~EDIS~~the European Liquidity Assistance Scheme. The Board shall take a decision on the request within another 24 hours.

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 n – title

Article 41n Provision of ~~funding~~liquidity

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 21

(21) While the reinsurance and coinsurance stages would share many common features, ensuring a smooth gradual evolution, pay-outs under the co- insurance stage would be shared between national DGS and the Deposit Insurance Fund as of the first euro of loss. The relative contribution from the Deposit Insurance Fund would gradually increase to 100 percent, resulting in the full mutualisation of depositor risk across the Banking Union after four years.deleted

2016/12/20
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 n – paragraph 1 – introductory part

The Board shall provide ~~funding~~liquidity under Articles 41a~~(2), 41d(2) and 41h(2)~~ in accordance with the following provisions:

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 n – paragraph 1 – point a

(a) the ~~funding~~liquidity shall be provided in the form of a cash contribution to the participating DGS;

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 n – paragraph 1 – point b

(b) the ~~funds~~liquidity shall be due ~~immediately~~within two working days after the determination of the Board in Article 41m.

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 o –title

Article 41o Repayment of ~~funding and determination of excess loss and loss~~liquidity

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 o – paragraph 1

1. The participating DGS shall repay the ~~funding~~liquidity support provided by the Board under Article 41n~~, less the amount of any excess loss cover in case of coverage under Article 41a or any loss cover in case of coverage under Article 41d or~~ in accordance with a repayment plan as referred to in paragraph 2 of this Article ~~41h~~.

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 o – paragraph 2

2. ~~Until~~Within 3 monthsof the determinationof the insolvency or resolution procedure, the Board shall determine, on an annual basis, the amount the participating DGS has already recovered from the insolvency procedure or has already been paid in accordance with Article 75 of Directive 2014/59/EU. The participating DGS shall referred to in Article 41m, the Board shall establish a repayment plan that ensures that the funding provide tod by the Board all information necessary to make this determination. The participating DGS shall pay to the Board a share of that amount which corresponds to the share that is covered by EDIS in accordance with Article 41a, Article 41d or Article 41hunder Article 41n will be repaid in full within five years by the participating DGS.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 22

(22) Safeguards should be built into ~~EDIS~~the European deposit reinsurance scheme so as to limit moral hazard risk and to ensure that the coverage by ~~EDIS~~the European deposit reinsurance scheme is only provided where nationals DGSs act in a prudent manner. Firstly, national DGSs should comply with their obligations under this Regulation, the Directive 2014/49/EU and other relevant EU law, in particular their obligation to build up their funds in accordance with Article 10 of Directive 2014/49/EU as further specified in this Regulation. In order to benefit from coverage by ~~EDIS~~the European deposit reinsurance scheme, participating DGSs need to raise ex-ante contributions in accordance with a precise funding path. This also implies that the possibility of a target level reduction in accordance with Article 10(6) of Directive 2014/49/EU is no longer available if the DGS wants to benefit from ~~EDIS~~the European deposit reinsurance scheme. Secondly, in case of a pay-out event or where its funds are used in resolution, a national DGS should bear a fair share of the loss themselves. It should therefore be required to collect ex-post contributions from its members to replenish its fund and to repay ~~EDIS~~the European deposit reinsurance scheme to the extent that the initially received funding exceeds the share of loss to be borne by ~~EDIS~~the European deposit reinsurance scheme. Thirdly, following a pay-out event, the national DGS should maximise the proceeds from the insolvency estate and repay the Board and the Board should have sufficient powers to safeguards its rights. - Fourthly, the Board should have the powers to recover all or part of funding in case of a participating DGS did not comply with key obligations.

2016/12/20
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 o – paragraph 3

3. In case of coverage under Article 41a, the participating DGSshall also pay to the Board, by the end of the first calendar year after the funding was provided, an amount equal to the ex-post contributions that the participating DGS may raise within one calendar year in accordance with the first sentence of the first subparagraph of Article 10(8) of Directive 2014/49/EU, less the amount of ex-post contributions it raised in accordance with point (b) of Article 41b(1) of this RegulationThe repayment plan initially shall, to the largest extent possible, be based on the expected funding from sources as referred to in paragraph 5.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 23

(23) The Deposit Insurance Fund is an essential element without which the progressive establishment of EDIS could not be achieved. Different national systems of funding would not provide for homogenous deposit insurance across the Banking Union. Throughout the three stages, the Deposit Insurance Fund should help ensuring the stabilising role of DGSs, a uniform high level of protection to all depositors in a harmonised framework throughout the Union and avoiding the creation of obstacles for the exercise of fundamental freedoms or the distortion of competition in the internal market due to different levels of protection at national level.deleted

2016/12/20
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 o – paragraph 4

4. ~~After the termination of the insolvency procedure or resolution procedure of~~The following conditions for the credit institution concerned, the Board shall without delay determine the excess loss in accordance with Article 41d or the loss in accordance with Article 41h. Where this determination results in arepayment obligation ofpayment planshall apply: a) the minimum annualrepayment bythe participating DGS tsha~~t differs from the amounts repaid in accordance with the secon~~ll be 15% of the funding provided by the Board aund ~~third paragraph, the difference shall be settled between the Board and the participating DGS without delay~~er article 41n; and b) each year, the Board shall reassess the level of expected recoveries and recalibrate the repayment plan for the remaining years in accordance with the assessment.

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 o – paragraph 4a (new)

4a. As long as a participating DGS has liquidity support outstanding with the DIF, any extraordinary contributions raised in accordance with Article 10(8) of Directive 2014/49/EU, any recoveries on the DGS’s claims pursuant to Article 9(2) of Directive 2014/49/EU and Article 75 of Directive 2014/59/EU, any repayment of or income derived from measures taken in accordance with Article 109 of Directive 2014/59/EU shall be repaid to the DIF first before those financial means are used to reach the target level of the participating DGS again. That requirement shall be reflected in the repayment plan.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 24

(24) The Ddeposit Ireinsurance Ffund should be financed by direct contributions from ~~bank~~participating DGSs. Decisions taken within the ~~EDIS~~European deposit reinsurance scheme, requiring the use of the Ddeposit Ireinsurance Ffund or of a national deposit guarantee scheme should not impinge on the fiscal responsibilities of the Member States. In that regard, only extraordinary public financial support should be considered to be an impingement on the budgetary sovereignty and fiscal responsibilities of the Member States.

2016/12/20
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 o – paragraph 4b (new)

4b. The participating DGS shall provide the Board as a minimum on an annual basis with updated information on any contributions, recoveries, repayments or income referred to in paragraph 5. In case of any event that could have a material impact on the trajectory of repayment as described in the repayment plan, the participating DGS shall provide any relevant information to the Board without undue delay and at the latest within 48 hours.

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 q –title

Article 41q ~~Monitoring of insolvency procedure~~Provision of funding by way of mandatory lending facility

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 q – paragraph 1

1. Following the provision of funding in case of a payout event in accordance with Article 41n of this Regulation, the Board shall monitor the insolvency procedure of the credit institution concerned and in particular the participating DGS’s efforts to collecton the deposit claims it subrogated to in accordance with the first sentence of Article 9(2) of Directive 2014/49/EULoans by participating DGSs shall be provided on the basis of a request for a loan by the SRB on the basis of the decision under Article 41m(2), containing all relevant information while respecting confidentiality requirements under Union law.

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 q – paragraph 2

2. The participating DGS shall maximise its proceeds from the insolvency estate and shall be liable towards the Board for any amounts not recovered due to a lack of diligence. The Board may decide, after hearing the participating DGS, to exercise itself all rights arising under the deposit claims mentioned in paragraph 1.;As long as the DIF has an outstanding loan referred to in Article 41ba, any funds received by the DIF in accordance with Article 41o shall be repaid to participating DGSs before those funds are used to repay alternative funding arrangements as referred to in 74g, or to reach the target level of the DIF referred to in 74b again.

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 q – paragraph 2 a (new)

2a. The detailed financial terms and conditions of the mandatory lending facility shall be specified in an agreement between each of the participating DGS and the Board.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 26

(26) Contributions would be ~~directly~~ levied on ~~bank~~participating DGSs to finance the Ddeposit Ireinsurance Ffund. The Board would c~~ollect~~alculate the contributions and administer the Ddeposit Ireinsurance Ffund, while national DGSs would continue to collect national contributions and administer national funds according to their own methods. In order to ensure fair and harmonised contributions for participating ~~banks~~national DGS and provide incentives to operate under a model which presents less risk, both contributions to EDIS and to national DGS should be calculated on the basis of covered deposits and a risk-adjustment factor per bank. During the re-insurance period the risk-adjustment factor should consider the degree of risk incurred by a bank relative to all other banks affiliated to the same participating DGS. Once the stage of co-insurance is reached, the risk- adjustment factor should consider the degree of risk incurred by a bank relative to all other banks establishthe European deposit reinsurance scheme and to national DGS should be calculated ion the participating Member States. This would ensure that, overall, EDIS is cost-neutral for banks and national DGSs and avoid any redistribution of contributions during the build-up phase of the Deposit Insurance Fundbasis of covered deposits and a risk- adjustment factor per bank.

2016/12/20
Committee: ECON

Markus FERBER

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

Article 41qa Terms of loans provided by the DIF 1. The Board shall determine the key financial terms and conditions of the liquidity facility in a standardised agreement. 2. The Board and the participating DGS that has requested liquidity support in accordance with Article 41a shall enter into an agreement based on the standardized agreement as referred to in paragraph 1. 3. The interest rate on loans provided by the DIF shall be equal to the ECB marginal facility rate plus one percentage point increased by one percentage point every second year of the remaining time to maturity of the loan.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 806/2014
Article 50 a – paragraph 1 –point a

(a) once the net accumulated use of the DIF in the last consecutive 12 months reaches the threshold of25 50%of the final target level, evaluate the application of E~~DIS~~uropean Liquidity Assistance Scheme, in particular the use of the DIF, and provide guidance which the executive session shall follow in subsequent ~~payout decisions, in particular, if appropriate, differentiating between the provision of funding and loss cover;~~liquidity support decisions.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 24 –point b

Regulation (EU) No 806/2014
Article 54 – paragraph 2 – point f

(f) determine the amount of fuliquidity support in accordance with Article 41m(1) and the amount of liquidity support to be provided by mandatory lending in accordance with Article 41lm(2);

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 24 –point b

Regulation (EU) No 806/2014
Article 54 – paragraph 2 – point g

~~(g) determine the payout loss and loss cover in accordance with Article 41o;~~deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 24 –point b

Regulation (EU) No 806/2014
Article 54 – paragraph 2 – point h

~~(h) decide to exercise the rights arsing under Article 41q.;~~deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 27

(27) ~~In principle, c~~Contributions should be collected from the industry prior to, and independently of, any deposit reinsurance action. When prior funding is insufficient to cover the losses or costs incurred by the use of the Deposit Insurance Fund, additional contributions should be collected to bear the additional cost or loss. Moreover, the Deposit Insurance Fund should be able to contract borrowings or other forms of support from credit institutions, financial institutions or other third parties in the event that the ex-ante and ex post contributions are not immediately accessible or do not cover the expenses incurred by the use of the Deposit Insurance Fund in relation to deposit insurance actions.

2016/12/20
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 a – paragraph 1

1. The DIF is hereby established. It shall be filled by ~~contributions owed to the Board by credit institutions affiliated to participating DGSs. The contributions shall be calculated and invoiced, on behalf ofthe Board, by participating DGSs~~transfers from participating DGSs of risk-based contributions collected from credit institutions affiliated to that DGSs. The amounts of risk-based contributions to be transferred shall be calculated bythe Board, in accordance with paragraph 2.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 a – paragraph 2

2. ~~The Board shall use the DIF only in order to provide the funding to, and cover the losses of, participating DGS in the different stages set out in Article 1(2)~~Each year the individual contribution of each participating credit institution shall be based on: a) a flat contribution, that is pro-rata based on the amount of and in ~~accordance with the objectives and the principles governing EDIS referred to in Article 6. Under no circumstances shall the Union budget~~stitution's covered deposits, with respect to the total covered deposits in the credit institutions referred to in Article 2(2), point (b), which shall amount to 20% orf the ~~national budgets be held liable for expenses or lossesof the Fund.~~total contribution; b) a risk-adjusted contribution, which shall amount to 80%of the total contribution;

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 b – paragraph 1

1. By ~~the end of the reinsurance period~~[8 years from the date of entry into force of this amending Regulation], the available financial means of the DIF shall reach a~~n initial~~ target level of ~~20% of four ninthof the sum of the minimum target levels that participating DGSs shall reach in accordance with the first subparagraph of~~12,5%of the target level referred to in Article 10(2) of 2014/49/EU calculated as a percentage of the amount of covered deposits in all credit institutions referred to in Article 102(2) ~~of Directive 2014/49/EU~~, point (b), of this Regulation.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 28

(28) In order to reach a critical mass and to avoid pro-cyclical effects which would arise if the Ddeposit Ireinsurance Ffund had to rely ~~solely~~ on ex post contributions in a systemic crisis, it is indispensable that the ex-ante available financial means of the Deposit Insurance Fund amount at least to a certain minimum target level.

2016/12/20
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 b – paragraph 2

2. By the end of the co-insurance period the available financial means of the DIF shall reach the sum of the minimum target levels that participating DGSs shall reach under the first subparagraph of Article 10(2) of Directive 2014/49/EU.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 29

(29) The ~~initial and final~~ target level of the Ddeposit Ireinsurance Ffund should be established as a percentage of the total minimum target levels of participating DGSs. It should ~~progressively~~ reach 205% of four ninth of the total minimum target levels by the end of the reinsurance period and the sum of all minimum target levels by the end of the co-insurance period. The possibility to apply for approval to authorise a lower target level in accordance with Article 10(6) of Directive 2014/49/EU should not be considered when setting the initial or final target levels of the Deposit Insurance Fund. An appropriate time frame should be set to reach the target level for the Deposit Insurance Funthe minimum target levels, i.e. 0.2% of the deposits covered.

2016/12/20
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 b – paragraph 3

3. During the reinsurance and co- insurance periods contributions to the DIF calculated in accordance with Article 74c shall be spread out in time as evenly as possible until the respective target level is reachdeleted.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 b – paragraph 4

4. After the target level specified in paragraph 2 has been reached for the first time and where the available financial means have subsequently been reduced to less than two-thirds of the target level, the contributions calculated in accordance with Article 74c shall be set at a level allowing to reach the target level within six years.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 b – paragraph 5

~~5. The Commission shall be empowered to adopt~~ delegated acts in accordance with Article 93 to specify the following: (a) criteria for the spreading out in time of the contributions to the DIF calculated under paragraph 2; (b) criteria for establishing the annual contributions provided for in paragraph 4.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c –title

Article 74c ~~Ex-ante contributions~~Funding the DIF

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 1

1. Each year ~~during the reinsurance and co-insurance period, the Board shall, after consulting the ECB and the national competent authority and~~until [8 years from the date of entry into force of this amending Regulation], the Board shall, in close cooperation with the participating DGSs and designated authorities, determine for each participating DGS the total amount of ~~ex-ante~~ contributions t~~hat it may claim from the credit institutions affiliat~~o be transferred to the ~~respective participating DGS~~DIF in order to reach the target levels provided for in Article 74b. The total amount of contributions to be transferred shall not exceed the target levels provided for in Article 74b ~~(1) and (2).~~

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 30

(30) Ensuring effective and sufficient financing of the Ddeposit Ireinsurance Ffund is of paramount importance to the credibility of EDIS. The capacity of the Board to contract alternative funding means for the Deposit Insurance Fund should be enhanced in a manner that optimises the cost of funding and preserves the creditworthiness of the Deposit Insurance Fund. Immediately after the entry into force of this Regulation, the necessary steps should be taken by the Board in cooperation with the participating Member States to develop the appropriate methods and modalities permitting the enhancement of the borrowing capacity of the Deposit Insurance Fund that should be in place by the date of application of this Regulationthe European deposit reinsurance scheme.

2016/12/20
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 1 a (new)

1a. Contributions shall be risk-based.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 2 –subparagraph 1

~~During the reinsurance period each participating DGS shall calculate, on the basis of the total amount~~The amounts to be transferred referred to in paragraph 1 of this Article shall be spread out in time as evenly as possible until the target level referred to in Article 74b is reached. The Board shall determine~~d by~~ the Board under paragraph 1, the contribution of each credit institution affiliated to it. It shall apply the risk-based method established bythe delegated act according to the second subparagraph of paragraph 5amount to be transferred by each participating DGS in accordance with Article 74a(2) and the method tocalculate the risk-adjusted contributions laid down inthe delegated act referred to in paragraph 9.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 2 –subparagraph 2

~~After the reinsurance period, the Board itself shall calculate the contribution of each credit institution affiliated to a~~The transfers from the participating DGS~~. T~~ tothe Bboard shall ~~apply the risk-based method established by the delegated act according to the third subparagraph of paragraph 5~~take place by 30 June of each year at the latest.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 2 –subparagraph 3

In all stages of EDIS the participating DGS shall invoice, on behalf of the Board, the contribution of each credit institution on an annual basis. Credit institutions shall pay the invoiced amount directly to the Board. The contributions shall become due on 31 May of each year.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 3

3. The duly received ~~contributions of each credit institution referred to in Article 2(2)~~transfers from each participating DGS shall not be reimbursed to th~~ose entitie~~e participating DGSs.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 31

(31) It is necessary to ensure that the Deposit Insurance Fund is fully available for the purpose of ensuring the guarantee of deposits. Therefore, the Deposit Insurance Fund should primarily be used for the efficient implementation of deposit guarantee requirements and actions. Furthermore, it should be used only in accordance with the applicable deposit guarantee objectives and principles. Under certain conditions, the Deposit Insurance Fund could also provide funding where the available financial means of a DGS are used in resolution in accordance with Article 79 of this Regulationis includes preventive measures to stabilise the DGSs as well as payments in the case of reinsurance.

2016/12/20
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 4 –subparagraph 1

The ~~contributions that credit institutions affiliat~~amounts transferred toby a participating DGS ~~pay~~ into the DIF in accordance with this Article shall count towards the minimum target level that theparticipating DGS shall reach in accordance with the first subparagraph of Article 10(2)of Directive 2014/49/EU. If the participating DGS, by 3 July 2024 or any later date, has followed the funding path set out in Article 41j and credit institutions affiliated to it paid to the DIF all ex-ante contributions that, until 3 July 2024, had to be paid to the DIF, these contributions shall constitute the full contribution owed in order to reach the target level in accordance with the first subparagraph ofeach participating DGS shall reach in accordance with Article 10~~(2)~~ of Directive 2014/49/EU.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 4 –subparagraph 2

Member States may provide that a participating DGS may consider the contributions that credit institutions affiliated to it paid into the DIF when setting the level of their ex-ante contributions or may reimburse these credit institutions from its available financial means to the extent they exceed the amounts set out in Article 41j on the relevant date.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 5 –subparagraph 1

The ~~Commission shall be empowered to adopt delegated acts in accordance with Article 93 in order to specify a risk-based method for the calculation of contributions~~Board, after consulting the participating DGS concerned and the designated authority, shall defer, in whole or in part, the transfer of the amount determined by Board in accordance with paragraph 2 of this Article when: (a) a participating DGS does not have sufficient financial means to transfer the amounts due, due to having used DGS funds pursuant to Article 11 of Directive 2014/49/EU prior to the date where the first transfer from the participating DGS to the Board shall take place; or (b) a participating DGS does not have sufficient financial means to transfer the amounts due, due to having used DGS funds for purposes as referred to in Article 41a before the target level referred to in Article 74b is reached. The Board, after consulting the participating DGS and the designated authority, shall define a plan for the payment of the transfer owed by the participating DGS, taking into account the contributions that the participating DGS can raise pursuant to Article 10 of Directive 2014/49/EU and the need for the participating DGS to repay any amounts borrowed. Deferrals granted cannot lead to increases in transfers for other participating DGSs aimed at maintaining the target level in accordance with paragraph 27 of this Article.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 31 a (new)

(31a) DGSs participating in the EDIS should work to prevent reinsurance cases wherever possible. Preventive stabilising measures are often a cost-efficient way to prevent damage cases. It should therefore also be possible for the EDIS to finance preventive measures to stabilise the DGSs.

2016/12/20
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 5 –subparagraph 2

~~It shall adopt one~~ delegated act specifying the method for the calculation of contributions payable to participating DGSs and, for the reinsurance period only, to the DIF. In this delegated act the calculation shall be based on the amount of covered deposits and the degree of risk incurred by each credit institution relative to all other credit institutions affiliated to the same participating DGS.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 35

(35) The Board, where all the criteria relating to the use of the Ddeposit Ireinsurance Ffund are met, should provide the relevant funding and loss cover to the national DGS.

2016/12/20
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 5 –subparagraph 3

~~It shall adopt a second~~ delegated act specifying the method for the calculation of the contributions payable to the DIF as from the co-insurance period. In this second delegated act the calculation shall be based on the amount of covered deposits and the degree of risk incurred by each credit institution relative to all other credit institutions referred to in point (b) of Article 2(2).

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 5 –subparagraph 4

~~Both~~ delegated acts shall include a calculation formula, specific indicators, risk classes for members, thresholds for risk weights assigned to specific risk classes, and other necessary elements. The degree of risk shall be assessed on the basis of the following criteria: (a) the level of loss absorbing capacity of the institution; (b) the institution’s ability to meet its short- and long-term obligations; (c) the stability and variety of the institutions sources of funding and its unencumbered highly liquid assets’; (d) the quality of the institution’s assets; (e) the institution’s business model and management; (f) the degree to which the institution’s assets are encumbered.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 46

(46) In order for ~~EDIS~~the European deposit reinsurance scheme to function in an effective manner ~~as of [….]~~, the provisions concerning the payment of contributions to the Deposit Insurance Fund, the establishment of all the relevant procedures and any other operational and institutional aspects should only apply ~~from XX.~~if all necessary risk-reduction preconditions have been fulfilled;

2016/12/20
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 47

(47) Regulation (EU) No 806/2014 should be amended to incorporate and respectively take into account the establishment of ~~EDIS~~the European deposit reinsurance scheme,

2016/12/20
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 2

(2) In addition, this Regulation establishes a European Ddeposit Ireinsurance Sscheme ('’EDIS~~') in three successive stages:~~’).

2016/12/20
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 5 a (new)

5a. As long as a participating DGS is benefiting from a deferral in accordance with paragraph 5 of this Article, any extraordinary contributions raised in accordance with Article 10(8) of Directive 2014/49/EU, any recoveries on the DGS’s claims pursuant to Article 9(2) of Directive 2014/49/EU and Article 75 of Directive 2014/59/EU, any repayment of or income derived from measures taken in accordance with Article 109 of Directive 2014/59/EU shall be transferred to the DIF to comply with the obligations under paragraphs 1 and 2 before these financial means are used to reach the target level of the participating DGS again.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 5 b (new)

5b. After [8 years from the date of entry into force of this amending Regulation] the Board shall, in close cooperation with the participating DGSs and designated authorities, determine contributions to be collected from each credit institution referred to in Article 2(2), point (b), and to be transferred to DIF by the participating DGS in order to maintain the target level provided for in Article 74b.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 5 c (new)

5c. After [8 years from the date of entry into force of this amending Regulation] the Board may, in close cooperation with the participating DGSs and designated authorities, defer the required contributions to be collected in accordance with paragraph 7 to ensure that the amount to be transferred reaches an amount that is proportionate to the costs of the collection process for participating DGSs, provided that such deferral does not materially affect the capacity of the Board to use the DIF in accordance with Article 41a.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 5 d (new)

5d. EBA shall develop draft regulatory standards to specify a risk-based method for the calculation of the amounts to be transferred to the DIF by the participating DGSs in accordance with paragraph 1 of this Article. The regulatory technical standards shall include a calculation formula, specific indicators, risk classes for members, thresholds for risk weights assigned to specific risk classes, and other necessary elements. The degree of risk of each participating DGS shall be assessed taking into account all the credit institutions referred to in Article 2(2), point (b), affiliated to it on the basis of the following criteria: (a) the level of loss absorbing capacity of the institution; (b) the institution’s ability to meet its short- and long-term obligations; (c) the quality of the institution’s assets, including the levels of impaired or non- performing loans; (e) the institution’s business model and management; (f) the degree to which the institution’s assets are encumbered; (g) the institution’s exposures to government debt; (h) whether the credit institution is subject to prudential requirements under Directive EU/2013/36 and Regulation (EU) No 575/2013. EBA shall submit those draft regulatory technical standards to the Commission by 12 months from the date of entry into force of this amending Regulation. Power is delegated to the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) No 806/2014
Article 1 – paragraph 2 – subparagraph 1 – indent 1

~~- a reinsurance scheme that, to a certain extent, provides funding and covers a share of the losses of participating deposit guarantee schemes in accordance with Article 41a;~~deleted

2016/12/20
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c a (new)

Article 74ca Limits for mandatory lending during the build-up phase of the European Liquidity Assistance Scheme Participating DGS shall provide mandatory lending in accordance with Article 41ba starting from 1st of July following 1 year after date of entry into force of this amending Regulation within the following limits: a) from the 1st of July following 1 year after date of entry into force of this amending Regulation, 50% of the minimum target level of each participating DGS; b) from the 1st of July following 2 years after date of entry into force of this amending Regulation, 40% of the minimum target level of each participating DGS; c) from the 1st of July following 3 years after date of entry into force of this amending Regulation, 35% of the minimum target level of each participating DGS; d) from the 1st of July following 4 years after date of entry into force of this amending Regulation, 30% of the minimum target level of each participating DGS; e) from the 1st of July following 4 years after date of entry into force of this amending Regulation, 25% of the minimum target level of each participating DGS; f) from the 1st of July following 4 years after date of entry into force of this amending Regulation, 20% of the minimum target level of each participating DGS; g) from the 1st of July following 4 years after date of entry into force of this amending Regulation, 15% of the minimum target level of each participating DGS; h) from the 1st of July following 8 years after date of entry into force of this amending Regulation and until the build- up of the DIF is completed, 12,5% of the minimum target level of each participating DGS.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 d –title

~~Article 74d Extraordinary ex-post contributions~~deleted

2024/03/13
Committee: ECON

Markus FERBER

Article 1 – paragraph 1 – point 34 Proposal for a regulation

1. Where, after the reinsurance period, the available financial means are not sufficient to cover the losses, costs or other expenses incurred by the DIF following a payout event, extraordinary ex-post contributions from the credit institutions affiliated to participating DGSs shall be raised in order to cover the additional amounts. Notwithstanding paragraphs 2 and 3, the amount of ex- post contributions to be raised shall be equal to the shortfall of available financial means but shall not exceed the maximum share of total covered deposits of all credit institutions within the scope of EDIS laid down by delegated act of the Commission in accordance with paragraph 5.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) No 806/2014
Article 1 – paragraph 2 – subparagraph 1 – indent 2

~~- a co-insurance scheme that, to a gradually increasing extent, provides funding and covers losses of participating deposit guarantee schemes in accordance with Article 41c;~~deleted

2016/12/20
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 d – paragraph 2

2. The Board shall itself calculate the contribution of each credit-institution affiliated to each participating DGS. It shall apply the risk-based method specified in the delegatedact adopted by the Commission in accordance with the third subparagraph of Article 74c(5). The third subparagraph of Article 74c(2) shall apply by analogy.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 d – paragraph 3

3. The Board shall, on its own initiative after consulting the relevant competent authority, or upon proposal by the relevant competent authority, defer, in whole or in part, in accordance with the delegated acts referred to in paragraph 4, an institution's payment of extraordinary ex-post contributions if it is necessary to protect its financial position. Such a deferral shall not be granted for a period of longer than six months but may be renewed on request of the institution. The contributions deferred pursuant to this paragraph shall be made later at a point in time when the payment no longer jeopardises the institution's financial position.deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 d – paragraph 4

~~4. The Commission shall be empowered to adopt~~ delegated acts in accordance with Article 93 to specify the annual limits referred to in paragraph 1 and the circumstances and conditions under which the payment of ex-post contributions by an entity referred to in point (b) of Article 2(2) may be partially or entirely deferred pursuant to paragraph 3 of this Article.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) No 806/2014
Article 1 – paragraph 2 – subparagraph 1 – indent 3

~~- a full insurance scheme that provides the funding and covers the losses of participating deposit guarantee schemes in accordance with Article 41e.~~deleted

2016/12/20
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 37

Regulation (EU) No 806/2014
Article 77 a

37. the following Article 77a is inserted: ‘ Article 77a Use of the DIF 1. During the reinsurance period the Board shall use the DIF to provide the funding in accordance with Article 41a(2) and cover a share of the excess loss in accordance with Article 41a(3). 2. During and after the co-insurance period the Board shall use the DIF to provide the funding in accordance with Article 41d(2) and Article 41h(2), respectively, and cover the loss in accordance with Article 41d(3) and 41h(3), respectively. 3. The use of the DIF with respect to a credit institution affiliated to a participating DGS shall be contingent upon compliance by this credit institution with the obligations incumbent on it as a member of the participating DGS set out in this Regulation and in Directive 2014/49/EU.; ’deleted

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 39 a (new)

Regulation (EU) No 806/2014
Article 94 – paragraph 3 a (new)

39a. in Article 94, the following paragraph is added: '3a. By 31 December [5 years after entry into force of this Regulation] the Commission shall review the functioning of the European Liquidity Assistance Scheme. The review shall assess in particular the following: (a) whether the scheme is calibrated in a manner that is sufficiently risk-based; (b) whether additional measures are warranted to address the state-bank nexus, in particular a dedicated regime for sovereign exposures; (c) whether additional measures can be introduced to make the European Liquidity Assistance Scheme more proportionate; The Commission shall submit a report to the European Parliament and the Council. Where appropriate, this report shall be accompanied by a legislative proposal.'

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 40

Regulation (EU) No 806/2014
Article 99 – paragraph 5 a

5a. By way of derogation from paragraph 2, Article 1(2), Part IIa and Part III, Title V Chapter 2 Section 1a shall apply from ~~[OP insert~~five years after one of the following dates, whichever is the latest: a) date of entry into force of this amending Regulation]; b) date of entry into force of the Directive on accelerated extrajudicial collateral enforcement mechanism (AECE); c) date of completion of a targeted asset quality review of all less significant institutions referred to in Article 6(4) of Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions.

2024/03/13
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 2 a (new)

Directive 2014/49/EU
Article 10 – paragraph 6

Article2a Amendment to Directive 2014/49/EU In Article 10 of Directive 2014/49/EU, paragraph 6 is deleted.

2024/03/13
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Part IIa – title

EUROPEAN DEPOSIT REINSURANCE SCHEME (EDIRS)

2016/12/21
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41a – paragraph 1

(1) As from the date of application set out in Article ~~99(5a~~41a(1), participating DGSs are reinsured by EDIS in accordance with this Chapter ~~for a period of three years (‘reinsurance period’).~~

2016/12/21
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41a – paragraph 1 a (new)

(1a) This Chapter shall enter into force on 1 January 2024 at the earliest, and then only if all the following conditions have been met in full: a) full implementation of the international standard for Total Loss Absorbing Capacity (TLAC) for Global Systemically Important Banks (G-SIBs) and of the revised rules in relation to a minimum requirement for own funds and eligible liabilities (MREL), for all credit institutions affiliated to the participating DGSs; b) full implementation of an insolvency ranking for credit institutions, harmonised at Union level, in relation to subordinated debt; c) full implementation of a framework for business insolvency, harmonised at Union level, in relation to the early restructuring of companies in order to prevent and better handle the pressing issue of non-performing loans; d) implementation of an act amending Regulation (EU) No 575/2013 and Directive 2013/36/EU, resulting in a binding leverage ratio requirement with additional requirements for G-SIBs; e) completion by the Commission, by 31 December 2021, of a review of the European supervisory architecture for credit institutions, resulting in the application of legislation introducing moratorium powers for supervisors and resolution authorities in respect of credit institutions affiliated to the participating DGSs; f) introduction of binding and effective capital backing rules for public bonds; g) publication by the Commission, by 31 December 2022, of an impact assessment in relation to the entry into application of this Chapter;

2016/12/21
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41a – paragraph 1 b (new)

(1b) The Commission is empowered to adopt a delegated act in accordance with Article 93 in order to supplement this Regulation by establishing the exact date of application of this Chapter. That empowerment shall be based on a verification, to be conducted by 2023, of compliance with the conditions set out above.

2016/12/21
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41a – paragraph 2

(2) In case a participating DGS encounters a payout event or is used in resolution in accordance with Article 79 of this Regulation, it may claim funding from the DIF ~~of up to 20% of~~for its liquidity shortfall ~~as set out in Article 41b~~. The share of liquidity shortfall coverage a participating DGS may claim from the DIF is laid down in paragraph 2a.

2016/12/21
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41a – paragraph 2 a (new)

(2a) The share of coverage under the second paragraph shall increase during the reinsurance period as follows: - in the first year of the reinsurance period it shall be 10%; - in the second year of the reinsurance period it shall be 20%; - in the third year of the reinsurance period it shall be 30%; - in the fourth year of the reinsurance period it shall be 40%; - in the fifth year of the reinsurance period it shall be 50%; - in the sixth year of the reinsurance period it shall be 60%; - in the seventh year of the reinsurance period it shall be 70%; - in the eighth year of the reinsurance period it shall be 80%; - in the ninth year of the reinsurance period it shall be 90%; - in the tenth year of the reinsurance period it shall be 100%;

2016/12/21
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41a – paragraph 3

(3) The DIF shall also cover 20% of the excess loss of the participating DGS as set out in Article 41c. The participating DGS shall repay the amount of funding it obtained under paragraph 2 of this Article, less the amount of excess loss cover, in accordance with the procedure set out in Article 41o.deleted

2016/12/21
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41a – paragraph 4

(4) Neither the funding nor the excess loss cover shall exceed the lower of 20% of the initial target level of the DIF as set out in Article 74b(1) of this Regulation and 10 times the target level of the participating DGS as defined in the first subparagraph of Article 10(2) of Directive 2014/49/EU.deleted

2016/12/21
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41c

(1) encounters a payout event, its excess loss shall be calculated as the total amount it repaid to depositors in accordance with Article 8 of Directive 2014/49/EU less: a) recovered from subrogating to the rights of depositors in winding up or reorganisation proceedings under the first sentence of Article 9(2) of Directive 2014/49/EU; b) means the participating DGS should have at the time of the payout event if it had raised ex-ante contributions in accordance with Article 41j; c) contributions the participating DGS may raise in accordance with the first sentence of the first subparagraph of Article 10(8) of Directive 2014/49/EU within one calendar year, which shall contain the amount raised in accordance with point (b) of Article 41b(1) of this Regulation. (2) participating DGS are used in resolution proceedings, its excess loss shall be the amount determined by the resolution authority in accordance with Article 79 less: a) participating DGS was paid in accordance with Article 75 of Directive 2014/59/EU; b) means the participating DGS should have at the time of the determination if it had raised ex-ante contributions in accordance with Article 41j.Article 41 c deleted Excess loss In case the participating DGS the amount the participating DGS the amount of available financial the amount of ex-post In case the funds of the the amount of any difference the the amount of available financial

2016/12/21
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Part IIa – title I – chapter 2

~~[...]~~Chapter 2 deleted Co-insurance

2016/12/21
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Part IIa – title I – chapter 3

~~[...]~~Chapter 3 deleted Full insurance

2016/12/21
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41i – paragraph 1 – introductory part

(1) A participating DGS shall not be covered by ~~EDIS in the reinsurance, co- insurance or full insurance phase,~~the deposit reinsurance scheme if the Commission, acting on its own initiative or upon a request of the Board or a participating Member State, decides and informs the Board accordingly that at least one of the following disqualifying conditions is met:

2016/12/21
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41j – paragraph 1

(1) A participating DGS shall only be reinsured~~, co-insured or fully insured by EDIS during the year following any of the dates set out below, if, by that date,~~ by EDIS if its available financial means raised by contributions referred to in Article 10(1) of Directive 2014/49/EU amount to at least ~~the following percentages of the total amount of covered deposits of all credit institutions affiliated to the participating DGS: – – – – – – – –~~0.6% of covered deposits. by 3 July 2017: 0.14%; by 3 July 2018: 0.21%; by 3 July 2019: 0.28%; by 3 July 2020: 0.28%; by 3 July 2021: 0.26%; by 3 July 2022: 0.20%; by 3 July 2023: 0.11%; by 3 July 2024: 0%.

2016/12/21
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41j – paragraph 2

(2) The Commission, after consulting the Board, may approve a derogation from the requirements set out in paragraph 1 for duly justified reasons linked to the business cycle in the respective Member State, the impact pro- cyclical contributions may have, or to a payout event which occurred at national level. Those derogations must be temporary and may be subject to the fulfilment of certain conditions.deleted

2016/12/21
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 n – paragraph 1 a (new)

Within three months of the determination referred to in Article 41m the Board shall establish a repayment plan that ensures that the liquidity support provided by the Board under Article 41n will be repaid in full, and as soon as possible, by the participating DGS.

2016/12/21
Committee: ECON

Markus FERBER

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

Regulation (EU) No 806/2014
Article 41 o

Repayment of funding and determination of excess loss and loss (1) the funding provided by the Board under Article 41n, less the amount of any excess loss cover in case of coverage under Article 41a or any loss cover in case of coverage under Article 41d or Article 41h. (2) insolvency or resolution procedure, the Board shall determine, on an annual basis, the amount tArticle 41o deleted The participating DGS shas already recovered from the insolvency procedure or has already been paid in accordance with Article 75 of Directive 2014/59/EU. The participating DGS shall provide to the Board all information necessary to make this determination. The participating DGS shall pay to the Board a share of that amount which corresponds to the share that is covered by EDIS in accordance with Article 41a, Article 41d or Article 41h. (3) 41a, the participating DGS shall also pay to the Board, by the end of the first calendar year after the funding was provided, an amount equal to the ex-post contributions that the participating DGS may raise within one calendar year in accordance with the first sentence of the first subparagraph of Article 10(8) of Directive 2014/49/EU, less the amount of ex-post contributions it raised in accordance with point (b) of Article 41b(1) of this Regulation. (4) insolvency procedure or resolution procedure of the credit institution concerned, the Board shall without delay determine the excess loss in accordance with Article 41d or the loss in accordance with Article 41h. Where this determination results in a repayment obligation of the participating DGS that differs from the amounts repaid in accordance with the second and third paragraph, the difference shall be settled between the Board and the participating DGS without delay.ll repay Until the termination of the In case of coverage under Article After the termination of the

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 18

Regulation (EU) No 806/2014
Article 49 a – title

Participation in plenary sessions relating to the European Deposit IReinsurance Scheme

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Part III – title V – chapter 2 – section 1 a – title

CONSTITUTION OF THE DEPOSIT REINSURANCE FUND

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 a – paragraph 1

(1) The DIF is hereby established. It shall be filled by risk-based contributions owed to the Board by ~~credit institutions affiliated to~~ participating DGSs. The contributions shall be calculated and invoiced, on behalf of the Board, by participating DGSs. The contributions shall be risk-based.

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 a – paragraph 2

(2) The Board shall use the DIF only in order to provide the funding to~~, and cover the losses of, participating DGS in the different stages set out in Article 1(2) and~~ participating DGSs as a liquidity buffer and for preventive stabilisation measures in accordance with the objectives and the principles governing EDIS referred to in Article 6. Under no circumstances shall the Union budget or the national budgets be held liable for expenses or losses of the Fund.

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 a – paragraph 3 a (new)

(3a) The DIF shall consist of: (a) individual risk-based subfunds, which are to be filled by each participating DGS; the target volume of the sum of all individual risk-based subfunds shall be 50% of the target volume of the DIF, i.e. 0.1% of covered deposits. (b) a joint risk-based subfund, which is to be filled by all participating DGSs; the target volume of the joint risk-based subfund shall be 50% of the target volume of the DIF, i.e. 0.1% of covered deposits.

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 a – paragraph 3 b (new)

(3b) Where a reinsurance event occurs, the liquidity buffer shall be provided from: (a) firstly, the individual risk-based subfund of the participating DGS that receives the support; (b) secondly, once the individual risk- based subfund is exhausted, the joint risk- based subfund; (c) thirdly, once the joint risk-based subfund is exhausted, the individual risk- based subfunds of all other participating DGSs, proportionate to the level of covered deposit of the participating DGSs. Repayment of the liquidity support shall take place in reverse order.

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 b – title

Target levels of the Deposit IReinsurance Fund

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 b – paragraph 1

(1) ~~By the end of the reinsurance period~~The target volume of the available financial means of the DIF shall ~~reach an initial target level of 20% of four ninths of the sum of the minimum target levels that participating DGSs shall reach in accordance with the first subparagraph of~~be 0.2% of the covered deposits. The accumulation of the target volume in the DIF shall take place by analogy to the increase in the upper limit referred to in Article 1041a(2) o~~f Directive 2014/49/EU~~ver a 10-year period from the start of the reinsurance period.

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 b – paragraph 2

(2) By the end of the co-insurance period the available financial means of the DIF shall reach the sum of the minimum target levels that participating DGSs shall reach under the first subparagraph of Article 10(2) of Directive 2014/49/EU.deleted

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 b – paragraph 3

(3) During the reinsurance and co- insurance periods contributions to the DIF calculated in accordance with Article 74c shall be spread out in time as evenly as possible until the respective target level is reachdeleted.

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 b – paragraph 4

(4) After the target level specified in paragraph 2 has been reached for the first time and where the available financial means have subsequently been reduced to less than two-thirds of the target level, the contributions calculated in accordance with Article 74c shall be set at a level allowing to reach the target level within six years.deleted

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 b – paragraph 5

~~(5) The Commission shall be empowered to adopt~~ delegated acts in accordance with Article 93 to specify the following: (a) time of the contributions to the DIF calculated under paragraph 2; (b) criteria for establishing the annual contributions provided for in paragraph 4.criteria for the spreading out in

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 1

(1) Each year during the reinsurance and co-insurance period, the Board shall, after consulting the ECB and the national competent authority and in close cooperation with the participating DGSs and designated authorities, determine for each participating DGS the total amount of ex-ante contributions that it may claim from the credit institutions affiliatThe risk-based contributions owed by credit institutions to participating DGSs shall be calculated and invoiced toby the ~~respective~~ participating DGSs in ~~order to reach the target levels provided for in Article 74b. The total amount of contributions shall not exceed the target levels provided for in Article 74b (1) and (2)~~accordance with their own method.

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 2 – subparagraph 1

During the reinsurance period each participating DGS shall calculate, on the basis of the total amount determined by the Board under paragraph 1, the contribution of each credit institution affiliated to it. It shall apply the risk-based method established by the delegated act according to the second subparagraph of paragraph 5In its calculation method referred to in paragraph 1, the participating DGSs may take into account the risk reducing effect of institutional protection schemes within the meaning of Article 113(7) of Regulation 575/2013/EU.

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 5 – subparagraph 1

~~The Commission shall be empowered to adopt~~ delegated ~~acts in accordance with Article 93 in order to specify a risk-based method for the calculation of contributions in accordance with paragraph 2 of this Article.~~

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 37

(1) ~~During the reinsurance period the Board shall use the DIF~~The DIF’s resources shall be used to provide ~~the~~ funding in ~~accordance with Article 41a(2) and cover a share of the excess loss in accordance with Article 41a(3)~~the form of a liquidity buffer when a reinsurance event occurs and to implement preventive measures to stabilise participating DGSs.

2016/12/21
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 37

Regulation (EU) No 806/2014
Article 77 a – paragraph 2

(2) During and after the co-insurance period the Board shall use the DIF to provide the funding in accordance with Article 41d(2) and Article 41h(2), respectively, and cover the loss in accordance with Article 41d(3) and 41h(3), respectively.deleted

2016/12/21
Committee: ECON

202 Amendments of Markus FERBER related to 2015/0270(COD)

ParlTrack - 2011-2024